CHEFA INSIGHTS for April 2025

CHEFA closes $200,000 loan with the Towers Foundation, Inc. through the Capital Investments Loan Program

The Towers Foundation, Inc. is a 501(c)(3), whose purpose is to provide a variety of services to residents of The Towers at Tower Lane, which is owned and operated by an affiliate, The New Haven Jewish Community Council Housing Corporation. The Towers at Tower Lane, is one of the country’s first senior living facilities, providing independent living and assisted living services. The community has 328 units and provides support services to Seniors who are either low-income or extremely low income. 

FY 2024 Independent School Sector Report Summary

Demand: Total student demand trends remain strong with an average 3.1% increase in applicant volume and enrollment over the past five years. Application volume remains strong among the boarding schools, at is second highest level in FY 2025 in the past five years (up 5.4% from FY 2021), resulting in an improved median selectivity rate during this time. The day schools however experienced a 5.6% decrease in applicant volume contributing to more schools becoming less selective over the past five years. Matriculation rates increased for the majority of the portfolio (mostly attributable to the boarding schools), supporting a steady increase in total enrollment in each of the past five years.

Key Financial Ratios: FY 2024 financial results reflect a stable view of the sector despite weakened operating performance, as the sector continues to maintain steady demand, manageable debt service and increased financial wealth. Despite a 29.1% increase in the net tuition revenue median, the EBIDA margin median decreased from 18.5% in FY 2020 to 15.1% in FY 2024. The portfolio is still considered leveraged but remains manageable across the sector with a lower debt service burden median of 3.3% and a strong debt service coverage ratio median at 3.3 times.

Total cash and investments have increased significantly from five years ago resulting in a 27.9% in the total endowment median since FY 2020. The FY 2024 total cash and investments to debt median of 3.4 times has increased 17.2% over the past five years but lags its high of 3.8 times in FY 2021. The total cash and investments to operations median improved from 1.9 times in FY 2020 to 2.3 times in FY 2024 and is traditionally much stronger amongst the boarding schools (at 3.1 times in FY 2024 compared to 1.5 times for the day schools). 19 institutions had at least a favorable 2.0 times coverage in FY 2024 while three institutions had less than a one-year’s cushion for operations. The FY 2024 monthly days cash on hand median of 398 days lags its high of 413 days in FY 2021 but remains 10.2% higher than from five years ago. FY 2024 individual medians of the private institutions varied significantly from a low of 50 days to a high of 1,241 days.

Total capital investment for the portfolio, increased 57% over the past five years with 61% of the portfolio investing more in their plant than their annual depreciation expense in FY 2024 compared to only 36% from five years ago. The FY 2024 median capital spending ratio of 1.29 times increased steadily from its low of 0.57 times in FY 2021 and is at its highest level over the past five years.

To learn more about CHEFA’s Independent School Sector report for FY 2024 and the performance of its 33 private schools that make up our independent school portfolio, please contact Krista Johnson, Senior Credit and Compliance Specialist at kjohnson@chefa.com.

CHEFA Closes $7.5M Financing to Advance Fairview’s Expansion

Located on a scenic 70-acre campus along the Thames River in Groton, Connecticut, Fairview is a licensed Continuing Care Retirement Community (CCRC) providing skilled nursing, post-acute rehabilitation, long-term care, and independent living options. The campus includes a 100-bed Medicare and Medicaid-certified skilled nursing facility, 20 CCRC-licensed apartments at Fellowship Manor, and 40 entrance-fee cottage-style homes at Thames Edge.

The newly closed $7.5 million in CHEFA financing will serve as the final piece of seed capital needed to launch Fairview’s highly anticipated Phase III expansion—The Vista Point at Fairview. This transformative project will be constructed on approximately 20 acres of currently undeveloped land and will offer new and enhanced living options for residents in a vibrant, community-centered setting.

Project Highlights Include:

• 175 new independent living apartments and 18 cottages with shared common areas and amenities;
• 42 new assisted living units and 28 memory support assisted living units;
• Renovation of the existing Fellowship Manor building;
• Demolition and relocation of existing buildings to make way for new development;
• Conversion of an existing apartment building into a dedicated sales office.

This expansion is not only a testament to Fairview’s commitment to senior care but also a reflection of CHEFA’s role in enabling innovative, mission-driven projects that enrich lives and communities across the state.

The $7.5 million financing builds upon the earlier Series 2024 A & B bond issues—also facilitated by CHEFA and placed directly with Chelsea Groton Bank—which provided $21.6 million to refinance Fairview’s outstanding debt and supply the initial $4.6 million in seed funding. Fairview anticipates securing permanent financing through a planned Series 2026 issue, bringing the total project cost to nearly $215 million.

CHEFA is proud to support this visionary project, which will significantly enhance senior living options in Connecticut and further strengthen Fairview’s role as a trusted provider of comprehensive, compassionate care.

Celebrating 60 Years of Impact!

By Jeanette W. Weldon
Executive Director, Connecticut Health and Educational Facilities Authority (CHEFA)

This year, the Connecticut Health and Educational Facilities Authority (CHEFA) proudly celebrates 60 years of service, investment, and impact across our state. Since 1965, CHEFA has played a vital role in financing Connecticut’s nonprofit institutions, supporting healthcare, education, and community organizations that provide critical services to Connecticut residents. As we reflect on CHEFA’s legacy, we also look to the future, ensuring CHEFA remains a catalyst for innovation and opportunity.

CHEFA was founded to provide financing solutions for Connecticut’s higher education institutions. In 1967, its mission expanded to include healthcare, allowing CHEFA to support hospitals, research facilities, and essential medical institutions. Over the decades, CHEFA has evolved—broadening its reach to nursing homes, childcare providers, and other organizations that provide critical services.

CHEFA financings have helped build dormitories, libraries, research centers, and hospitals. CHEFA has enabled healthcare systems to expand services, invest in new technology, and improve patient care. CHEFA has also supported educational institutions in modernizing campuses, creating state-of-the-art learning environments. These investments have strengthened healthcare, education, and communities across Connecticut.

Today, CHEFA’s mission remains as essential as ever: provide financial assistance to eligible entities in the State, expand educational opportunities for Connecticut students, and enhance the quality of life for State residents, including those in distressed communities.

Beyond traditional bond financing, CHEFA offers grant funding and other financial tools to help nonprofits expand their reach. A recent example of CHEFA’s commitment to its mission is the $250,000 Enterprise Capital Grant awarded to All Our Kin to support home-based early childhood educators. This initiative reflects CHEFA’s belief that strong communities begin with strong foundations, and early education is a key investment in our state’s future.

Looking ahead, CHEFA remains focused on driving meaningful change. CHEFA recognizes the evolving challenges nonprofits face, from financial pressures to the need for greater equity in education and healthcare. To meet these challenges, CHEFA is exploring new, flexible financing solutions that ensure Connecticut’s nonprofits have the resources they need to thrive.

Whether through low-cost loan funds, grant programs that support vital community programs, or impactful capital projects funded through CHEFA’s tax-exempt financings, CHEFA is committed to fostering a stronger, healthier, and more vibrant Connecticut.

For 60 years, CHEFA has helped build hospitals that heal, schools that educate, and community spaces that bring people together. CHEFA is happy to reaffirm its dedication to supporting the next generation of transformational projects in celebrating this historic milestone.

The future is bright, and CHEFA stands ready for the next 60 years of impact, innovation, and investment.