0989 Educational Facilities Authority
0940 - BOND FINANCING
CEFA issues revenue bonds to assist private educational institutions of higher learning in the expansion and construction of educational facilities. Because it is authorized to issue tax-exempt bonds, the Authority may provide more favorable financing terms to such private institutions than might otherwise be obtainable. Pursuant to Chapter 569, Statutes of 2001, CEFA may include qualifying nonprofit entities as eligible program participants for the construction of student and faculty housing. Bonds issued by CEFA are not a debt, liability, or claim on the faith and credit or the taxing power of the State of California, or any of its political subdivisions. The full faith and credit of the participating institution is normally pledged to the payment of the bonds. Bonds issued for this purpose are not subject to the state's ''private activity'' bond ceiling as specified in the Federal Tax Reform Act of 1986.
Prior to January 1, 1999, CEFA was authorized to have outstanding at any one time $2.6 billion in bonds for educational facilities. Pursuant to Chapter 741, Statutes of 1998, effective January 1, 1999, there is now no limitation on the amount of bonds outstanding at any one time. As of June 30, 2014, bonds and notes in the amount of $11.3 billion have been issued and $4.6 billion were outstanding.