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<br />" <br />I <br /> <br />,. :."' <br /> <br />'. <br /> <br />e <br /> <br />,. <br /> <br />FACT SHEET <br /> <br />HEALTH FACILITIES <br />DEVELOPMENT CORPORATION <br /> <br />1. The Health Facilities Development Act (Article <br />1528; Vernon I s Texas Civil Statutes) passed in 1981 permits <br />non-profit health facilities development corporations to issue <br />revenue bonds, the interest on which is exempt from federal <br />income tax. The proceeds of these bonds may be used to finance <br />health facilities, including hospitals, clinics, nursing homes, <br />pharmacies, laboratories, research facilities and medical office <br />buildings, within Harris County. Any bonds issued by a <br />non-profit 'health facilities development corporation under the <br />terms of that Act cannot constitute a debt of the State of Texas <br />or Harris County. <br /> <br />2. A non-profit corporation created pursuant to the <br />Health Facilities Development Act is not a political subdivision <br />of the State of Texas and has no taxing power or power of eminent <br />domain. <br /> <br />3. By its creation of the Harris County Industrial <br />Development Corporation, the County has approved the use of "tax <br />exempt" revenue bonds to promote manufacturing and industrial <br />development and expansion. A heal th facilities development <br />corporation created under the Health Facilities Development Act <br />would function quite similarly to 'the Harris County Industrial <br />Development Corporation; however, instead of providing tax exempt <br />financing for manufacturing and industrial projects the health <br />facili ties development corporation would provide tax exempt <br />financing for all types of health facilities. <br /> <br />4. Prior to the passage of the Health Facilities <br />Development Act hospital financing has been accomplished in the <br />State of Texas pursuant to another statute. That statute permits <br />only the financing of non-profit health facilities, whereas the <br />Health Facilities Development Act also permits the financing of <br />for-profit health facilities. <br /> <br />5. The board of directors of a health facilities <br />development corpo~t~.2n is appointed by the County. It is <br />recommended that ~rJdirectors be appointed. These directors <br />would not be public officials and would be entitled only to . <br />reimbursement of expenses for serving on the board of directors. <br /> <br />- 1 - <br />