California Health Facilities Financing Authority Act.

Assembly Member Stefani's proposal to modify California's health facility financing framework removes existing time constraints on working capital loans while establishing new financial eligibility requirements for healthcare institutions. The legislation eliminates both the two-year cap on working capital loan interest and the 24-month repayment deadline currently required for private nonprofit healthcare organizations.

The bill requires the California Health Facilities Financing Authority to evaluate institutions seeking working capital loans based on their creditworthiness, pledged revenues, debt service coverage, and overall financial security. Organizations deemed to be in financial distress would be ineligible for these loans. The authority retains its existing mandate to assess similar criteria when reviewing facility construction and acquisition project financing.

These changes affect the California Health Facilities Financing Authority Fund, a continuously appropriated source that provides loans to qualifying healthcare institutions for facility acquisition, construction, remodeling and working capital needs. The legislation's authors state in their findings that the modifications aim to provide creditworthy nonprofit healthcare organizations with additional financing options.