West Virginia Code of State Rules Agency 116 - Hospital Finance Authority
West Virginia Code of State Rules – Agency 116: Hospital Finance Authority
Overview:
Agency 116 of the West Virginia Code of State Rules (CSR) governs the West Virginia Hospital Finance Authority (HFA). The Authority was created to assist nonprofit hospitals and health facilities in acquiring financing for capital improvement projects, including construction, renovation, equipment acquisition, and refinancing of existing debt.
The HFA issues tax-exempt revenue bonds on behalf of eligible healthcare institutions, allowing them to access funding at lower interest rates than traditional commercial loans.
Key Functions and Responsibilities:
Bond Issuance:
Facilitates the issuance of tax-exempt bonds for hospitals, health systems, and other qualified providers.
Assists with refinancing of existing debt and new capital project financing.
Application and Approval Process:
Establishes the procedures for applying for financial assistance.
Requires financial and operational disclosures to assess eligibility and creditworthiness.
Project Oversight and Compliance:
Ensures financed projects are eligible and lawful under state and federal tax codes.
Maintains compliance with IRS regulations regarding tax-exempt financing.
Bond Administration and Reporting:
Manages ongoing reporting requirements for issuers.
Coordinates with trustees, underwriters, and legal counsel on bond structuring and repayment.
Support for Public Health Infrastructure:
Promotes investments that improve healthcare access and facility modernization in West Virginia.
Topics Typically Covered in Agency 116 Rules:
Eligibility criteria for hospitals and healthcare facilities
Bond issuance procedures and application requirements
Use of bond proceeds and restrictions
Fee structures for Authority services
Reporting and disclosure obligations for borrowers
Default and enforcement provisions
Legal Authority:
The Authority operates under West Virginia Code § 16-29A, which authorizes the creation and governance of the Hospital Finance Authority.
Agency 116 rules implement this statute through administrative regulations.
Types of Projects Financed:
Hospital construction or expansion
Equipment purchases (e.g., MRI, surgical systems)
Renovation of outdated medical facilities
Debt restructuring or refinancing for lower interest rates
Goals and Impact:
Provide cost-effective financing for nonprofit healthcare providers
Improve healthcare infrastructure across West Virginia
Enhance access to quality medical care through capital development
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