Panel clears bill to expand Minnesota Higher Education Facilities Authority to finance health projects

The committee on March 21 re‑referred House File 1165, a bill that would rename the Minnesota Higher Education Facilities Authority (MHEFA) as the Minnesota Health and Education Facilities Authority and permit the agency to finance nonprofit health‑care and senior‑living projects in addition to higher‑education facilities.

Representative Barner introduced the bill and said MHEFA is a self‑funded state authority with a decades‑long history of issuing tax‑exempt bonds for higher‑education capital projects. Executive Director Barry Fick testified the authority has two paid staff and operates without a cost to the state general fund. The bill seeks statutory permission to extend MHEFA’s expertise to nonprofit healthcare financing, a model already used by 14 other states.

Under the draft legislation described to the committee, the authority’s borrowing caps would be increased and apportioned: $2.2 billion for the authority’s existing higher‑education mission and $2.75 billion to address increased demand for nonprofit health and senior‑living financing. The bill would also add a non‑voting board member with healthcare expertise and allow the authority to finance facilities for Minnesota organizations with certain contiguous‑state projects.

Representative Tina Liebling asked whether dental facilities would fall within the proposed definition of health facility; Barry Fick said dental facilities would be included under the bill’s broader healthcare rubric. Committee members discussed the authority’s vetting process and examples of past projects for higher education — dormitories, auditoriums and other campus facilities — and heard that the authority evaluates financial stability and project feasibility before approving financing.

Representative Barner moved the bill for referral; the committee re‑referred HF 1165 to the Higher Education Finance and Policy Committee for consideration.