California Health Facilities Financing Authority Act: nondesignated hospitals: loan repayment.

Assembly Member Patel's legislation modifies loan repayment terms for nondesignated public hospitals that received emergency funding during the COVID-19 pandemic through the California Health Facilities Financing Authority. The measure extends the current 24-month repayment window, allowing hospitals to begin monthly payments 36 months after receiving their loans and complete repayment within 60 months of the loan date.

Under the revised terms, participating hospitals that obtained loan approval and entered security agreements with the Authority would make amortized monthly payments at zero percent interest over the extended period. The bill maintains hospitals' ability to repay loans early without penalties while preserving other existing requirements of the loan program established in the 2022 Budget Act. This modification applies specifically to facilities that the Authority determined were unable to meet the original repayment timeline.

The measure requires a two-thirds legislative vote and includes an appropriation by removing restrictions on expenditure of previously allocated funds. While the bill focuses narrowly on repayment schedules for qualifying facilities, it maintains the Authority's broader lending capabilities and oversight responsibilities established under current law.