The Authority is a public corporation and a public instrumentality of the Commonwealth of Pennsylvania, created by the Act of December 6, 1967 (P.L. 678, Act 318), known as the Pennsylvania Higher Educational Facilities Authority Act of 1967 (24 P.S. §5501 et seq.), to provide a source of tax-exempt financing for colleges and universities. The Authority is governed by a nine-member body composed of the Governor, State Treasurer, Auditor General, Secretary of Education, Secretary of General Services, President Pro Tempore of the Senate, Speaker of the House of Representatives, Minority Leader of the Senate, and Minority Leader of the House of Representatives.
The Authority finances projects through the issuance of bonds, the principal and interest of which are paid by the annual lease/loan payments collected from colleges and universities. The Authority serves as a financing conduit, bringing the ultimate borrower and the ultimate lender together. The goal of the Authority is to make lower cost tax-exempt financings available to colleges and universities.
Benefits of using PHEFA for your financing needs:
- PHEFA is a well-known name in the public finance community issuing over $23 billion since inception in 1967.
- Professional full-time staff to expedite the bond issuance process
- Working relationship with a large number of public finance professionals including bond counsels, underwriters, financial advisors and trustees.
- Arbitrage Rebate calculations and compliance.
- Competitive fees that are often lower than local authorities with an annual fee cap for large bond issues.
- PHEFA stays on top of the latest trends in public finance by being an active member of the National Association of Health & Educational Facilities Finance Authorities (NAHEFFA).