Financing Programs

MHHEFA offers financial advisory services to all eligible borrowers to help them determine the best financing strategy for their capital projects. Financing can include up to 100% of the project costs, including land acquisition, architectural, legal, construction, renovation, and any surveys or studies performed.

Moral Obligation, Pooled Loan Program

MHHEFA’s Moral Obligation Program provides the lowest cost financing for capital projects. MHHEFA enjoys an excellent reputation as an issuer of tax-exempt debt that is supported by a well-managed reserve fund with State Moral Obligation backing. As a frequent issuer (2-4 times per year) there is strong demand for MHHEFA’s bonds, allowing us to obtain superior pricing for the benefit of our borrowers. Moral Obligation bonds will typically realize better pricing than comparably rated, stand-alone institutions. The pool structure is both more convenient (MHHEFA facilitates all legal filings and ratings agency communication) and lower cost (issuance expenses shared across pool members).

The Authority employs a rolling application process and pool formation is dynamic based on borrower demand.

Conduit Loan Program

The Conduit Loan Program provides borrowers with additional scheduling and structural flexibility. Borrowers that want to take advantage of tax-exempt bank financing or enter the public markets on their own can choose the Conduit Program. Conduit Bond Issues are issued solely on the credit strength of the borrowing institution and do not benefit from the State’s Moral Obligation which may result in a higher cost of financing.

Am I eligible?