Capital Development

The increase in demand for health services is putting pressure on Michigan’s Community Health Centers, pressure toFemale Provider and Patient treat increasing numbers of uninsured and underinsured patients.

Community Health Centers need additional health care providers and additional health care facilities to meet this growing need and MPCA is working to assist Michigan Health Centers by identifying capital opportunities and financing options as they seek to expand their health care services.


Capital Development Resources















USDA Community Facility Program

USDA has loans, loan guarantees, or grants available for facility improvement projects in rural areas with populations of 20,000 or less. The loans have very favorable interest rates and extended terms. Click Here for more information. 





Michigan State Hospital Finance Authority

Community Health Centers qualify for programs under the Michigan State Hospital Finance Authority. Those programs include Health Care Facility Financing and Health Care Equipment Loan Program.

The Michigan State Hospital Finance Authority is empowered to issue bonds and make loans to hospitals, nursing homes, homes for the aged, hospices and certain retirement housing providers to finance and refinance the acquisition, construction, improvement or alteration of hospital facilities and the payment of project costs. Bonds have ranged from $2M to $1B. Variable interest rate has averaged about 3.5%.

For information on opportunities with bond financing click here or contact:

Thomas J. Letavis, Director of Authority Finance Division
Dept. of Treasury, Michigan State Hospital Finance Authority
Austin Building
P.O. Box 15128, 430 W. Allegan
Lansing, MI 48901
Phone: 517-241-9504
E-Mail: LetavisT@michigan.gov




The Michigan Health & Hospital Association Service Corporation


Health Equipment Loan Program (HeLP)

The Michigan Health & Hospital Association Service Corporation and the Michigan State Hospital Finance Authority offer the Healthcare Loan Program (HeLP). HeLP is a pooled, tax-exempt financing program that involves a number of health care organizations participating in a single public financing and sharing in the proceeds and costs associated with that financing. The program takes advantage of economies of scale through group participation; allowing each borrower to access low cost financing without individually incurring all of the transaction costs associated with public financing. These loans may also be used for construction. Loans generally range from $500,000 to more than $20 million; with 20 year amortization; variable rate, averaging about ½ of prime.

For more information on HeLP click here or contact:

Gary Henriksen
Michigan Health & Hospital Association Service Corporation
6215 West St. Joseph Highway
Lansing, MI 48917
Phone: (517) 323-3443
Fax: (517) 323-0913
E-Mail: ghenriksen@mha.org



New Markets Tax Credits Program


Community Development Financial Institutions (CDFI) Fund

The CDFI Fund was created for the purpose of promoting economic revitalization and community development through investment in and assistance to community development financial institutions (CDFIs). One of the ways the CDFI Fund achieves its purpose is to promote access to capital and local economic growth through its New Markets Tax Credit (NMTC) Program by providing an allocation of tax credits to community development entities (CDEs) which enable them to attract investment from the private-sector and reinvest these amounts in low-income communities.

NCB Capital Impact

NCB Capital Impact, the non-profit affiliate of NCB, provides financial services and technical assistance to create more affordable cooperative homeownership, housing and services for the frail and elderly, and facilities for community-based health care centers and charter schools. Headquartered in the Washington, D.C. metro area, NCB Capital Impact has offices in California and New York. In the last 10 years alone, NCB Capital Impact has loaned or invested more than $600 million in its primary investment areas of education, affordable housing, health care, affordable assisted living, worker ownership and community and economic development. NCB Capital Impact.

New Markets Tax Credits

For facility improvement projects in low income communities, the New Markets Tax Credits (NMTC) program is an important compliment to traditional bank loans, and will help lower interest rates, reduce monthly payments, and create equity instead of debt. To date, NCB Capital Impact was awarded $319 million in New Markets Tax Credits (NMTC) to provide health care organizations, charter schools, and other community organizations affordable financing nationwide.
The NMTC product now available through NCB Capital Impact is a real estate backed community facilities loan with the following features:
  • Loan Term: 7 – 15 years
  • Amortization: 25- 30 years
  • Interest Rate: Interest-only available, all affordably priced
  • Loan to Value: up to 90% or more of appraised value, depending on adequacy of debt service coverage

For information on NMTC contact:
 
Scott Sporte, Managing Director
NCB Capital Impact
1333 Broadway, Ste 602, Oakland, California 94612
Phone: (510) 496-2233
Email: ssporte@ncbcapitalimpact.org

Jon Kelly
Vice President, Community Investment Group
NCB Capital Impact
2011 Crystal Drive
Suite 800
Arlington, VA 22202
Phone: (703) 647-2347
Email: JKelly@ncbcapitalimpact.org




Nonprofit Finance Fund

NFF provides financial resources, in the form of loans, grants, and asset-building programs, in concert with management advice. NFF works directly and with funders to strengthen nonprofit organizations and the system by which they are funded.

In Fall 2009, NFF was awarded $60 Million in New Markets Tax Credits, which it is using to attract private capital. With this capital, NFF is providing loans at reasonable rates to nonprofits serving low-income communities. In total, NFF has received $130 million in New Markets Tax Credit allocations.

NMTC loans are available for community facility projects over $5 million that may that involve acquisition, substantial renovations, leasehold improvements, or new construction of community spaces such as charter schools, health clinics, community centers, arts & cultural spaces, and others.

For additional information click here or contact:

Cheryl J. Baur, Senior Associate
Nonprofit Finance Fund
645 Griswold St., Suite 2202
Detroit, MI 48226
Phone: (313) 965-9145
Email: Cheryl.Baur@nffusa.org

For Nonprofit Finance Fund Midwest Region click here.




HRSA Loan Guarantees

HRSA Loan Guarantees are available to community health centers, and can help secure the needed bank loan and reduce the interest rate. For information on HRSA Loan Guarantees please use the links below:




Brownfields


The Brownfields Economic Development Initiative (BEDI) is a key competitive grant program that HUD administers to stimulate and promote economic and community development. BEDI is designed to assist cities with the redevelopment of abandoned, idled and underused industrial and commercial facilities where expansion and redevelopment is burdened by real or potential environmental contamination.

For a BEDI application and/or guidebook to all HUD programs, please contact the SuperNOFA Information Center at 1-800-HUD-8929. Persons with hearing or speech impairments may call the Center's TTY number at 1-800-HUD-2209.

Questions regarding the BEDI program may be directed to David Kaminsky in HUD's Office of Economic Development at (202) 402-4612.

Note: BEDI is primarily an economic development strategy. Buildings and sites with contamination that can be cleaned up and have the potential to create jobs are the primary focus. This includes contaminated rural parcels also. Projects are usually initiated by private developers working with local governments acting as grantees. Projects such as health center development can qualify.

Click here to visit the HUD - Brownfields Economic Development Initiative (BEDI) web site.




Information on Brownfields and Historical Site Development


The renovation of Brownfield sites and Historical sites is a great way to rejuvenate communities; financial incentives are also available to help you complete the work.

For information on tax credits and other incentives available for Brownfield and Historical sites click here or contact:

Tim Hunnicutt
Gryphon Group, LLC
225 S Bridge St
DeWitt, MI 48820
Phone: 517-669-6024x2
Email: thunnicutt@gryphon-llc.com




Foundation Dollars and the Medicaid Match

Fundraising can be an important component for a facility improvement project. Money raised from public contributions increases health center equity, and reduces the amount of health center debt.

Funds contributed by foundations may quality for a match through the federal Medicaid program. That match is currently over 2 to 1. This really is a great opportunity, so before you start your fundraising campaign, get more information on the Foundation Medicaid Match process by contacting Neal Colburn at MPCA at 517-381-8000 x220. 




Bank Loans

Health centers may be able to use a number of different sources to finance their facility improvement project. Hopefully the financing will include a nice mix of public contributions, grant funds, match dollars, and tax credits. What is not covered by these equity-creating dollars will have to be financed through the traditional method – bank loans. For more information on bank loans please contact:

Scott Sporte, Managing Director
NCB Capital Impact
1333 Broadway, Ste 602
Oakland, California 94612
Phone: (510) 496-2233
Email: ssporte@ncbcapitalimpact.org

Jon Kelly
Vice President, Community Investment Group
NCB Capital Impact
2011 Crystal Drive, Suite 800
Arlington, VA 22202
Phone: (703) 647-2347
Email: JKelly@ncbcapitalimpact.org

Cheryl J. Baur, Senior Associate
Nonprofit Finance Fund
645 Griswold St., Suite 2202
Detroit, MI 48226
Phone: (313) 965-9145
Email: Cheryl.Baur@nffusa.org




Consulting Services for Facility Improvement Projects

Capital Link is an experienced source for help with facility improvement projects. Capital Link is a national nonprofit organization established to assist health centers in planning and obtaining financing for building and equipment projects. They have offices in nine states.

Capital Link has helped a number of health centers with funding assistance for their facility improvement projects – to the tune of almost $317 million for 137 projects. For information on working with Capital Link contact:

Dave Kleiber
1920 Main Street, Suite 18
Ferndale, WA 98248
Phone: (360) 312-0481
Email: dkleiber@caplink.org



Historic Preservation: State of Michigan Preservation Office

For information on utilizing Historic Preservation Tax Credits click here or contact:
Robert McKay
Historical Architect
(517) 335-2727

For Information on the review under Section 106 of the National Historic Preservation Act of 1966 Projects utilizing federal assistance (i.e. FQHCs) require review click here or contact:
Cultural Resources Protection section of the SHPO
(517) 335-2721

Michigan State Housing Development Authority (MSHDA)
Brian G. Grennell
Cultural Resources Protection Specialist
Michigan State Historic Preservation Office
702 W. Kalamazoo Street
P.O. Box 30740
Lansing, MI 48909-8240
Phone (517) 335-2721
Fax (517) 335-0348
Email:Grennellb@michigan.gov

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