Barry W. Fick, Executive Director
Minnesota Health and Education Facilities Authority
Minnesota Health and Education Facilities Authority
Learn about Minnesota Health and Education Facilities Authority including our News & Press Releases, Borrowers, and Team.
Have questions? Reach out to us directly.
Learn about Minnesota Health and Education Facilities Authority including our News & Press Releases, Borrowers, and Team.
About The Authority
The Minnesota Health and Education Facilities Authority (the “Authority”) was formed by the Minnesota Legislature in 1971 as the Minnesota Higher Education Facilities Authority. In 2025, the Minnesota Legislature passed a bill renaming the Authority and expanding the organizations it can assist.
The purpose of the Authority is to assist Minnesota-based institutions of higher education and healthcare in the construction, financing, and refinancing of capital projects. The legislation authorizing the Authority establishes and affirms that the Authority’s authorized power is an essential public function. The Authority is also authorized and empowered to do all things necessary or helpful to carry out its statutory purpose.
The Authority may have up to $5 billion of bonds or notes outstanding at any time. The Authority receives no state funding of any kind. It does not have any taxing power and does not receive any allocation of tax receipts from the State of Minnesota. Authority operations are funded 100% from fees charged to borrowers and investment earnings.
Authority’s Mission
The mission of the Minnesota Health and Education Facilities Authority is to assist eligible institutions of higher education and healthcare in the State of Minnesota to finance or refinance their capital needs in an efficient and cost-effective manner.
The Authority assists educational and healthcare institutions primarily through the issuance of tax-exempt debt obligations on their behalf. The Authority also actively seeks to develop financing programs that may be of benefit to institutions and shall make its staff and technical resources available to institutions whenever the application of those resources may prove beneficial in the development or implementation of institutional debt financing plans. The Authority actively seeks to have laws and regulations amended or revised to empower the Authority to provide such assistance. The Authority also informs and updates representatives of the institutions on the current regulations and strategies of debt financing. The Authority holds an annual Financing Conference for this purpose as well as to educate borrower personnel about Authority services available to the institutions of higher education.
To help accomplish its mission, the Authority also provides substantial assistance to borrowers after the sale. This includes helping with credit rating matters, regulatory requirements for publication of financial information for bondholders, compliance with IRS regulations, and maintenance of tax-exempt status by the borrower.
Statutory Authority
The Minnesota Health and Education Facilities Authority derives its power to finance projects from
Minnesota Statutes, Section 136A.25 to 136A.42 (the “Enabling Act”). All financings of the Authority are “conduit” issues. That means that the Authority is the issuer of the bonds or notes. The Authority loans the bond or note proceeds to the borrower institution, thereby functioning as a conduit to fund the borrower’s project. The borrower institution agrees to repay the loan on the same terms and conditions as issued by the Authority. Loan repayments are used to pay the principal of and interest on the bonds or notes as they become due. The real credit and beneficiary is the Minnesota higher education or healthcare institution that will receive the proceeds from the sale of the bonds.
The Authority does not have any financial liability for the repayment to bondholders. The Authority’s bonds shall not be legal or moral obligations of the State, nor shall they constitute a debt for which the faith and credit of the Authority or the State, or the taxing powers of the State, are pledged. The Authority has no taxing power.
Tax-Exempt Financing Guide
The Authority has developed a guide to Tax-Exempt Financing for Not-For-Profit Organizations to assist borrowers, available for download
here.
State Agency also receives new name: the Health and Education Facilities Authority
[Eagan, Minnesota] – [September 8, 2025] – The Minnesota Health and Education Facilities Authority today announced an expansion of its services, as the state agency is now able to assist nonprofit healthcare organizations across the state. This enhancement is a direct result of the recently enacted Health and Human Services Omnibus bill (Special Session 1: H.F. 2/Chapter 3), signed into law by Governor Tim Walz on June 12, 2025.
The Authority was originally created by the legislature in 1971 as the Minnesota Higher Education Facilities Authority to assist nonprofit higher education institutions finance large capital projects such as classrooms, science labs, dormitories, or college athletic facilities.
The new law allows the Authority to provide similar financing assistance to nonprofit healthcare institutions such as hospitals, clinics, and nursing homes. The Authority will continue to serve nonprofit colleges and universities. Minnesota now joins thirteen other states who provide similar financing authority for both nonprofit higher education and healthcare.
This expansion comes at a critical time for Minnesota’s healthcare systems, many of which are navigating financial headwinds while continuing to invest in modern, high-quality care. The newly renamed Authority provides a streamlined, cost-effective option for nonprofit healthcare providers to finance capital improvement projects, including facility renovations, new construction, and refinancing of existing debt.
“This move responds to the increasing demand we’re seeing from healthcare institutions that need the same type of affordable, long-term financing we’ve successfully provided in higher education for over 50 years,” said Barry Fick, Executive Director of the Minnesota Higher Education Facilities and Healthcare Authority. “We are committed to helping healthcare leaders focus more of their resources on patients and less on complex financing structures.”
“We look forward to serving healthcare, just has we serve higher education—by driving down capital financing costs for these important Minnesota nonprofits,” said Barry Fick, Executive Director of the Authority. “I also want to thank State Senator John Hoffman and State Representative Kristin Bahner for their tireless advocacy for this legislation at the Capitol.”
“We are proud of our more than 50-years of serving Minnesota colleges and universities and are excited the legislature chose to expand our work to hospitals, nursing homes, and clinics across Minnesota,” said Bonnie Anderson Rons, Chair of the Authority’s Board of Directors.
As a full-service conduit financing authority, the Minnesota Higher Education Facilities and Healthcare Authority receives no state funding and operates solely on borrower fees, which are among the lowest in the industry. The Authority currently manages more than $1.3 billion in assets and brings a strong reputation for efficient, client-centered service.
“This is about more than financing,” added Fick. “It’s about enabling Minnesota’s nonprofit healthcare providers to focus on what matters most, which is delivering exceptional care in every community they serve.”
The legislation changes the agency’s name from the Minnesota Higher Education Facilities Authority to the Minnesota Health and Education Facilities Authority and increases the Authority’s debt limit from $2 billion to $5 billion.
Nonprofit healthcare organizations interested in learning more are encouraged to visit the Authority's website at www.mnhefa.org or by calling 651-296-4690.
About the Minnesota Health and Education Facilities Authority (MHEFA):
The Authority is a state agency that serves as a full-service conduit bond financing authority. Authority Fees are substantially lower than authorized by the Internal Revenue Service and represent a solid value for nonprofit borrowers. The Authority is entirely funded by fees charged to borrowers and receives no tax revenue or any other government funding. The Authority consists of eight board members appointed by the Governor, with advice and consent of the Minnesota Senate. The state agency is led by an Executive Director. Authority debt is not backed by or supported by the State of Minnesota, and the credit rating and debt capacity of the State are not affected by bonds issued through the Authority. The Authority has never had a bond default in its more than 50-year history.
Contact: Mr. Barry Fick, Executive Director, bwf@mnhefa.org, 651-296-4690
Both the Minnesota House of Representatives and the Minnesota Senate passed the Higher Education Omnibus bill near the conclusion of the 2024 Legislative Session. The Higher Education Omnibus bill included a section that increased the allowable outstanding debt issued for borrowers that is issued through the Authority to $2.0 billion, a $700 million increase from the current level of $1.3 billion. The approved bill will be sent to the Governor, who is expected to sign it. The capacity increase for the Authority will be effective on July 1, 2024.
This increase is vital to the Authority. The continuing success of the Authority’s financing assistance has resulted in outstanding debt of over $1.28 billion, leaving little room to assist borrowers if the outstanding debt capacity would not have been increased.
The Authority is grateful to the legislative sponsors of the capacity increase, the House and Senate Higher Education Committee Chairs, members and staff for their assistance and guidance in getting the capacity increase drafted and approved. The firm of Carnival Berns PA and the Minnesota Private College Council also provided valuable guidance and assistance in assuring the success of the capacity increase.
The Authority is a full-service conduit bond financing authority that receives no State of Minnesota financial support. The Authority is completely funded by fees charged to borrowers. Fees are substantially lower than allowed by the Internal Revenue Service and represent a solid value for borrowers.
The bonds issued by the Authority for borrowers are not legal or moral obligations of the State of Minnesota or the Authority, nor do they constitute a debt for which the faith and credit of the Authority or the State, or the taxing powers of the State, are pledged. The Authority has no taxing powers.
Please see the below news item.
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