Section 47: Authorizes HEFA To Direct Funds To Community Hospital and Community Health Center Capital Reserve Funds

The purpose of the authority shall be to assist institutions in the acquisition, construction, financing and refinancing of projects, and for this purpose the authority is authorized and empowered:

(a) to adopt by-laws for the regulation of its affairs and the conduct of its business;

(b) to adopt an official seal and alter the same at pleasure;

(c) to maintain an office at such place or places as it may designate;

(d) to sue and be sued in its own name, plead and be impleaded;

(e) to determine the location and character of any project to be financed under the provisions of this act, and to construct, reconstruct, remodel, maintain, manage, enlarge, alter, add to, repair, operate, lease, as lessee or lessor, and regulate the same, to enter into contracts for any or all of such purposes, to enter into contracts for the management and operation of a project, and to designate a participating institution as its agent to determine the location and character of a project undertaken by such participating institution under the provisions of this act and, as the agent of the authority, to construct, reconstruct, remodel, maintain, manage, enlarge, alter, add to, repair, operate, lease, as lessee or lessor, and regulate the same, and, as the agent of the authority, to enter into contracts for any or all of such purposes, including contracts for the management and operation of such project;

(f) to issue bonds, bond anticipation notes and other obligations of the authority for any of its corporate purposes, and to fund or refund the same all as provided in this act;

(g) generally, to fix and revise from time to time and charge and collect rates, rents, fees and charges for the use of and for the services furnished or to be furnished by a project or any portion thereof and to contract with any person, partnership, association or corporation or other body public or private in respect thereof and to designate a participating institution as its agent to fix, revise, charge and collect such rates, rents, fees and charges and to make such contracts;

(h) to establish rules and regulations for the use of a project or any portion thereof and to designate a participating institution as its agent to establish rules and regulations for the use of a project in which such participating institution is participating;

(h 1/2 ) to require, at the expense directly or indirectly of an institution intending to participate in a project, a report on the financial feasibility of such project to be financed. The report of an independent accountant or accounting firm or financial expert employed or selected by such institution with the approval of the authority shall be deemed to satisfy the requirement of such report, if such independent accountant, accounting firm or financial expert has demonstrated capability of preparing such financial feasibility reports. The authority shall not unreasonably or arbitrarily withhold such approval and may promulgate regulations stipulating the form and content of such report.

(i) to employ consulting engineers, architects, attorneys, accountants, construction and financial experts, superintendents, managers, and such other employees and agents as may be necessary in its judgment, and to fix their compensation;

(j) to receive and accept from any public agency loans or grants for or in aid of the construction of a project or any portion thereof, and to receive and accept loans, grants, aid or contributions from any source of either money, property, labor or other things of value to be held, used and applied only for the purposes for which such loans, grants, aid and contributions are made;

(k) to mortgage any project and the site thereof for the benefit of the holders of revenue bonds issued to finance such project; provided, however, that the authority shall not mortgage any project undertaken on behalf of a public institution for higher education or the site thereof, and shall not convey such project or site except pursuant to section eight;

(l) to make loans to any participating institution for the cost of a project in accordance with an agreement between the authority and one or more participating institutions; provided that no such loan shall exceed the total cost of the project as determined by such participating institution and approved by the authority;

(m) to make loans to participating institutions to refund outstanding obligations, mortgages or advances issued, made or given by such institutions for the cost of a project;

(n) to charge to and equitably apportion among participating institutions fees, administrative costs and expenses incurred in the exercise of the powers and duties conferred by this act;

(n 1/2 ) to fund the capital reserves authorized under paragraph (g) of section 10 and to fund and administer loans and grant programs for community hospitals and community health centers under paragraph (g) of section 10 and to fund any reimbursement of the commonwealth required by paragraph (g)(xii) of section 10;

(o) to acquire and to enter into commitments to acquire any federally guaranteed security and to pledge or otherwise use any such federally guaranteed security in such manner as the authority shall approve to secure or otherwise provide a source of repayment on any of its bonds or to enter into any appropriate agreement with one or more participating institutions whereby the authority may make a loan to any such institution for the purpose of enabling such institution to fund or refund, directly or indirectly, the cost of acquiring or entering into commitments to acquire any federally guaranteed security; provided, however, that the federally guaranteed security is evidence of a federally insured project loan or, if not such evidence, that the authority determines that the federally guaranteed security has been issued to pass through a federally insured project loan;

(o 1/2 ) to issue electric rate reduction bonds, as defined in section 1H of chapter 164 of the General Laws, for the benefit of any electric company, as defined in section 1 of said chapter 164, that is determined to be eligible for said bond financing by the department of telecommunications and energy pursuant to said chapter 164, provided, however, that such electric rate reduction bonds shall constitute bonds as defined in clause (d) of section 3; provided, further, that such an electric company shall be deemed to be a participating institution as defined in clause (n) of section 3; and provided further, that the financing or refinancing of transition costs or the acquiring of transition property as provided for in said section 1H of said chapter 164 shall be deemed to be a project as defined in clause (b) of section 3.

(p) to do all things necessary or convenient to carry out the purpose of this act. In carrying out the purposes of this act, the authority may undertake a joint project or projects for two or more participating institutions and, thereupon, all other provisions of this act shall apply to and for the benefit of the authority and the participants in such joint project or projects. The authority shall not undertake any project on behalf of a public institution for higher education except upon written request made by the board of regents of higher education established under section two of chapter fifteen A of the General Laws.

Summary: 
Authorizes the Health and Educational Facilities Authority (HEFA) to allocate capital reserve funds to Community Hospital and Community Health Center Capital Reserve Funds created in Section 48 of this Act. These funds will support community hospitals and community health centers through loans and grant programs according to terms in Section 48 of this Act.

Section 188 of chapter 240 of the acts of 2010 subsequently dissolved HEFA and merged its functions into MassDevelopment.