Presentation on theme: "Health Care Funding. What Is An Essential Community Facility? Provides an essential service to the local community – the service must be a function customarily."— Presentation transcript:
Health Care Funding
What Is An Essential Community Facility? Provides an essential service to the local community – the service must be a function customarily provided by a local unit of government. Must be a public improvement needed for the orderly development of a rural community. All facilities must be for public use and be located in an eligible rural area.
An Eligible Facility Must Be: A function customarily provided by a local unit of government Operated on a non-profit basis Able to demonstrate significant support (N/A for Public Bodies)
Eligible Rural Areas Cities, towns, and census designated places (CDPs) with populations of 20,000 or less according to the latest decennial census of the United States. There is no limitation placed on population in unincorporated rural areas, with the exception of CDP’s.
Eligible Applicants PUBLIC BODIES Such as: municipality county district authority, or, other political subdivision of a state
Eligible Applicants NON-PROFIT ORGANIZATIONS An organization operated on a not-for-profit basis, such as an association, cooperative, or private corporation. Need to provide organizational documents to demonstrate nonprofit status.
Nonprofit Corporations Must have significant ties to local community To ensure that a facility under private control will carry out a public purpose Facility will continue to primarily serve rural areas
How Can Funds Be Used? Eligible Loan Purposes Purchase real estate/buildings Construction, expansion, or renovations, to essential community facilities Purchase vehicles and major equipment including Health IT equipment
Eligible Loan Purposes Purchase an existing facility to improve or to prevent a loss of service; Construct buildings, roads, bridges, day care facilities, hospitals, medical clinics, public safety facilities, city halls, court houses, etc. Finance anything essential for orderly community development except recreational facilities
Loan Terms Up to 40 years dependent upon the useful life of the security and repayment ability. Principal can be deferred for up to 3 years to allow facility to become operational.
Interest Rates (as of January 1, 2014) Present rates (subject to change quarterly): Market % (above $49,785) Intermediate -4.75% ($39,828 - $49,785) Poverty -4.50% (below $39,828) NOTE: Rates based on applicant’s median household income as shown in the 2010 Census Data. The Poverty rate involves alleviating an existing health or sanitary problem.
Maximum Loan Amount Up to 100% of eligible project costs subject to: Adequate security Ability to repay Applicant’s authority to borrow Availability of funds
Security Public Bodies Non-Profit Corporations revenue bonds general obligation bonds special assessment bonds promissory notes real estate mortgages promissory notes real estate mortgages financing statements security agreements revenue anticipation bonds
Community Facilities Funding – FY 2013 For FY 2013 which ended on September 30, 2013, USDA, Rural Development in Georgia received the following funds: Direct Loans - $69,637,630 CF Grants - $393,290 EII Grants - $231,760
Community Facilities Funding – FY 2014 For FY 2014, USDA, Rural Development in Georgia is operating under a Continuing Resolution. We have received the following funds under the CR: Direct Loans - $23,676,750 Guaranteed Loans - $0 CF Grants - $116,780 EII Grants - $0 The budget for FY 2014 has been passed, but funding is unknown at this time.
Distance Learning and Telemedicine (DLT) Grant program announced annually through publication in the Federal Register FY 2013 announced June 28, Application deadline August 12, 2013 $17,531,000 available in FY 2013 National competition Objective is to focus is on using the unique capabilities of telecommunications to connect rural areas to each other and to the world, thus overcoming the effects of remoteness and low population density
DLT – Eligible Use Funds This list is not exhaustive and does not convey automatic eligibility. To be eligible in full, items must be primarily for DLT eligible purposes. Eligible equipment includes: Audio and video equipment; Computer hardware and software; Computer network components; Terminal equipment; Data terminal equipment; Interactive audio/video equipment; Original Equipment Manufacturer (OEM) or OEM authorized warranties on eligible equipment up to the 3-year life of the grant; and Inside wiring.
DLT – Limitations (FY 2013) $50,000 minimum grant $500,000 maximum grant Matching funds of at least fifteen (15) percent Higher percentage of matching funds will increase score
CF Application Processing RD in Georgia is moving towards “Team Concept” CF Applications will be assigned to specific team members for processing Team member will work with applicant all the way through the project Our goal is more efficient processing because team members will be focused on specific RD programs
Contact Information Jack Stanek, Community Programs Director (706)