0989 Educational Facilities Authority
0940 - BOND FINANCING
CEFA issues revenue bonds to assist private educational institutions of higher learning construct educational facilities. Because it is authorized to issue tax-exempt bonds, the Authority may be able to provide more favorable financing terms than might otherwise be obtainable. CEFA also 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.
For purposes of the California Educational Facilities Act, "private college" or "private participating college" means a private college that does not restrict the admission of a student based on his or her race or ethnicity, provided that the financing does not violate constitutional provisions.
"Bond" means bonds, notes, debentures, securities, or other evidences of indebtedness. This broad definition allows CEFA to issue tax-exempt direct or private placement loans for colleges and universities, which may provide greater cost savings than these colleges and universities might otherwise realize on a traditional bond financing.
0945 - STUDENT LOAN PROGRAMS
Pursuant to Chapter 917, Statutes of 1995, the California Student Loan Authority (CSLA) was abolished, and the assets, obligations, and functions were transferred to CEFA. The purpose of the CSLA was to purchase federally reinsured educational loans from eligible lending institutions by issuing tax-exempt revenue bonds. Pursuant to Chapter 917, CEFA's functions were expanded to include direct student lending from proceeds of tax-exempt revenue bonds. As of June 30, 2015, there were no loans or bonds outstanding.
Chapter 318, Statutes of 2005, added the requirement that not-for-profit corporations must seek approval from CEFA before applying for an allocation of a portion of the state's annual private activity volume cap for the purposes of issuing Qualified Scholarship Funding Bonds for Student Loan Programs. Bonds issued for student loans are not a debt, liability, or a pledge of the full faith and credit of the taxing power of the state or any of its political subdivisions. This is a trust activity, and all operating expenses must be paid from revenues and other moneys available to CEFA.
Chapter 34, Statutes of 2014, provided that, for purposes of the California Educational Facilities Authority Act, "student loan" may also mean a loan assumption pursuant to the Assumption Program of Loans for Education program administered by the California Student Aid Commission.
Chapter 816, Statutes of 2014, established the California Student Loan Refinancing Program to help eligible college graduates refinance student loan debt at favorable rates. Chapter 816 authorizes the authority to contract with any financial institution, as defined, for the purpose of allowing the financial institution to participate in the program and establishes eligibility requirements for qualified borrowers to participate in the program.
0955 - COLLEGE ACCESS TAX CREDIT FUND
Chapter 367, Statutes of 2014, required CEFA to administer the College Access Tax Credit Fund and allocate and certify the tax credits for taxable years beginning on or after January 1, 2014, and before January 1, 2017. Chapter 22, Statutes of 2015, added a requirement that CEFA continue to allocate and certify the tax credits for taxable years beginning on or after January 1, 2017, and before January 1, 2018.