The Montana Facility Finance Authority was created by the 1983 Legislature and administratively attached to the Department of Commerce. It is governed by a seven member quasi-judicial board. Board members are appointed to four year terms by the Governor with the advice and consent of the Senate. The Authority was created to assist health care and related facilities contain future health care costs by offering financing at low-cost, tax-exempt interest rates. These cost savings are shared with the consumer in the form of lower facility charges.
The Facility Finance Authority is funded entirely by proprietary funds with revenues collected from interest, fees, and charges from participating institutions. No public funds or tax monies are appropriated to the Authority.
Most non-profit care facilities, including hospitals, nursing homes, assisted living facilities, residential homes for persons with developmental or mental disabilities, and pre-release facilities are eligible to participate in the programs offered by the Authority. The Legislature has extended eligible facilities to include small for-profit, value-added manufacturing facilities.
The Authority's financing process is designed to maintain and enhance access to the broadest range of financing alternatives to improve sustainability, effectiveness and efficiency of eligible health care and related facilities and small manufacturing business within the private and public sectors in Montana.
The objectives of the financing programs are:
- To encourage the timely construction and reconstruction;
- To encourage safe, secure and well-equipped facilities;
- To access the broadest range of capital financing options; and
- To secure the lowest cost capital.