The Capital Issue

December 2013-January 2014

It’s customary to reflect on one year as another one begins. And if we judge it by how the nation’s fiscal policy went, it certainly has been a rocky 12 months.

Americans learned about what a fiscal cliff and sequestration were as the year began and experienced the effects of the government shutdown in the fall. Due to partisan division, the federal government did not pass a budget and HUD ran out of commitment authority a month before the end of its fiscal year.  For the sectors we service, organizations are still grappling with tight budgets, decreased reimbursement, increasing regulations, consolidation and the implementation of health care reform.

Despite these challenges, the economy has been slowly and steadily improving. Opportunities for growth and improvement should help providers stay competitive in the 2014 and beyond.
These and other topics of interest have been addressed by authors in The Capital Issue over the past year to keep you up to date on issues that may affect your business. This edition features two articles on nontraditional funding structures for nonprofits, the second in the senior living series on HUD/FHA Sec 241(a), how to find soft funding for LIHTC projects and timely advice on how nonprofits can prepare for the expected tapering of the Fed’s stimulus.

Please let us know if you have any questions by reaching out to the authors as well as to our bankers for answers. To find the one closest to you, visit

Wishing you the happiest of holidays!

Tom Green, CEO

Private Placements: The Time is Right

Private Placements: The Time is Right

All borrowers, but particularly nonprofit organizations, want the lowest cost of funding with the most flexible terms. Now, because of market conditions, a nontraditional tax-exempt funding for hospitals and continuing care retirement communities (CCRCs) may be a more attractive option for refinancing or capital projects. 

Taxable Bonds: A Timely Structure

Taxable Bonds: A Timely Structure

Using tax-exempt bonds for funding a capital project is a no brainer for a nonprofit hospital or health system, right?

Well, the answer to that is not as simple as it once was.

Getting an Early Start on FHA Sec. 241(a)

Getting an Early Start on FHA Sec. 241(a)

During the first half of October 2013, the U.S. federal government partially shut down for the lack of a continuing resolution to fund government operations. Only functions that were deemed essential were allowed to operate.  

Closing the Gap: Soft Funding Options for LIHTC Projects
Preparing for the Taper: How Changes to Fed Stimulus May Impact Nonprofit Portfolios

Preparing for the Taper: How Changes to Fed Stimulus May Impact Nonprofit Portfolios

After more than five years, the Federal Reserve Board (the Fed) announced on Dec. 18, 2013, that the quantitative easing program currently in place, the monthly open-market purchase of $85 billion of mortgage-backed securities and treasury securities, would begin to slow. The announcement described a $10 billion reduction of monthly securities purchases beginning in January.