About the Authority

The Minnesota Higher Education Facilities Authority was created by the legislature in 1971 (Sections 136A.25 through 136A.42, Minnesota Statutes) to assist Minnesota institutions of higher education in capital financing needs. The Authority consists of eight members appointed by the Governor. A representative of the Minnesota Office of Higher Education and the President of the Minnesota Private College Council, who is a non-voting member, are also members of the Authority.

The Authority is authorized to issue revenue bonds whose aggregate outstanding principal amount at any time cannot exceed $950 million. As of June 30, 2008 the Authority has had 168 issues (including refunded and retired issues) totaling over $1.5 billion of which approximately $751 million is outstanding. Bonds issued by the Authority are payable only from the loan repayments, rentals, and other revenues and moneys pledged for their payment. The bonds of the Authority do not represent or constitute a debt or pledge of the faith or credit or moral obligation of the State of Minnesota.

Educational institutions eligible for assistance by the Authority are generally private nonprofit educational institutions authorized to provide a program of education beyond the high school level. Under current statutory authority, public community and technical colleges in the State are also eligible for assistance, but only in financing of child-care and parking facilities. In addition, pursuant to special legislation, the Authority has twice issued bonds on behalf of a public community college for housing purposes.

The Authority may issue bonds for a broad range of projects, including buildings or facilities for use as student housing, academic buildings, parking facilities, day-care centers, and other structures or facilities required or useful for the instruction of students, the conducting of research, or the operation of an institution of higher education.

The Authority is also authorized to issue revenue bonds for the purpose of refunding bonds of the Authority.

The operations of the Authority are financed solely from fees paid by the participating institutions. It has no taxing power.

Bond issuance costs, including the fees of legal counsel, the financial advisor and the trustee, are paid by the participating institution.

As of June 30, 2008