Federal Update
Below is a selection of recent health policy and regulatory news and information relevant to health centers and PCAs. For regular updates, subscribe to Capital Link’s blog, or access NACHC’s blogs and the HRSA’s health center webpage.
Health Center Funding Cliff Fixed
February 9, 2018 – Congress passed legislation to fix the Health Center funding cliff, which includes two years of extended funding, and $600 million additional dollars to support health center operations and address unmet need in communities across the US. Access NACHC’s statement here.
NMTC Allocation Awards Announced
February 13, 2018 – The U.S. Department of the Treasury’s Community Development Financial Institutions Fund announced the awardees for the 2017 round of New Markets Tax Credit (NMTC) allocations. The $3.5 billion in awards are aimed at revitalizing low-income communities and increasing economic opportunity nationwide. Community Health Center Capital Fund (Capital Fund), Capital Link’s lending affiliate, was awarded a $40 million NMTC allocation.
To date, health centers have raised more than $1 billion for their capital projects through NMTC and these projects are highly desirable investments for NMTC allocatees and investors. While NMTC financing is a critical source of low-cost capital and equity for health center facility projects—often securing approximately 20-22% of total project costs—obtaining allocation credits is a competitive and complex process. Interested health centers must demonstrate a high level of project readiness and be able to communicate the merits of their projects to CDEs with allocation. Furthermore, the process of structuring and closing an NMTC transaction is complicated and the terms, benefits, and fees offered to borrowers vary widely.
Health centers wanting to explore this option should act now. While the program is authorized through 2020, it is unclear whether tax reform efforts could change or eliminate access to this important resource in the future.
Health centers interested in considering this financing option should access our series of three Spotlight on Capital Resources issues describing the NMTC program here or a recording of our recent webinar, Aligning Your Capital Project Financing Needs with Available Funding Sources: New Markets Tax Credits here.
HRSA Awards $282 Million to Expand Primary Health Care Workforce
October 19, 2017 – HRSA announced nearly $282 million in awards to primary health care clinicians and students through the National Health Service Corps (NHSC) and NURSE Corps Scholarship and Loan Repayment Programs.