FEDERAL
AGENCY:
HOUSING,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AUTHORIZATION:
National
Housing Act, as amended, Section 242; 12 U.S.C. 1715z-7; Public
Law 90-448, Public Law 92-609; Public Law 93-383, 82 Stat. 476;
Public Law 95-128, and Public Law 96-183.
To
facilitate the affordable financing of hospitals for the care and
treatment of persons who are acutely ill or who otherwise require
medical care and related services of the kind customarily furnished
only or most effectively by hospitals.
TYPES
OF ASSISTANCE:
Guaranteed/Insured Loans.
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USES
AND USE RESTRICTIONS:
HUD
insures lenders against loss on mortgages. The loans may be used
to finance the construction, modernization, equipment, or refinancing
of acute care hospitals.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: Qualified applicants can be either
profit or not-for-profit hospitals licensed or regulated by the
State, municipality, or other political subdivision. At least 50
percent of the care must be for general acute patients.
Beneficiary
Eligibility: Persons needing the services
of these hospitals benefit by using the modernized facilities
supported by the insured mortgages.
Credentials/Documentation:
Documentation regarding the characteristics of the property and
the qualifications of the mortgagor are assembled by the mortgagee
and submitted with the application. A Certificate of Need from
the appropriate State agency, or alternative study if there is
no State Agency requirement, is necessary. This program is excluded
from coverage under OMB Circular No. A-87.
APPLICATION
AND AWARD PROCESS:
Pre-application
Coordination: Interested parties should contact
the program office with information about the proposed project before
preparing an application. This program is excluded from coverage
under OMB Circular No. A-102. This program is eligible for coverage
under E.O. 12372," Intergovernmental Review of Federal Programs."
Application
Procedure: The sponsor submits a formal application
to the Office of Insured Health Care Facilities, Room 9224, Department
of Housing and Urban Development, 451 Seventh Street, SW., Washington,
DC 20410. This program is excluded from coverage under OMB Circular
No. A-110.
Award
Procedure: The Federal Housing Commissioner
makes final decisions to approve, hold, or reject individual projects.
Deadlines:
None.
Range
of Approval/Disapproval Time: Processing time
depends upon the complexity of the proposal and the degree of
preparation by the sponsor.
Appeals:
If an application for mortgage insurance is refused, the reasons
for the refusal will be stated. The applicant may reapply.
Renewals:
The term of a commitment to insure advances is effective for 180
days from the date of issuance and may be extended for good cause.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: The maximum mortgage
amount may not exceed 90 percent of the estimated replacement cost
of the hospital including the installed equipment. The mortgage
insurance premium is based on one-half percent of the average monthly
amortized unpaid principal balance for the forthcoming year. The
combined HUD application and commitment fees are $3 per $1,000 of
the mortgage amount. The HUD inspection fee may not exceed $5 per
$1,000 of the mortgage amount.
Length
and Time Phasing of Assistance: The maximum
mortgage term may extend for 25 years.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Any change of the mortgagor during the period of mortgage insurance
must be approved by HUD. Defaults in meeting the mortgage terms
must be reported. Mortgagors are required to submit annual audited
financial statements to HUD or its agent at HHS. Approved mortgagors
must furnish copies of their latest financial statements upon request
by HUD or HHS.
Audits:
The Department of Housing and Urban Development reserves the right
to audit the accounts of either the mortgagee or mortgagor in
order to determine their compliance and conformance with HUD regulations
and standards.
Records:
Mortgagees and mortgagors are required to service and maintain
records in accordance with acceptable mortgage practices of prudent
lending institutions and FHA regulations. Records must be kept
in accordance with State and Federal Regulations during the construction
phase.
FINANCIAL
INFORMATION:
Account
Identification: 86-4077-0-3-371.
Obligations:
(Mortgage insurance commitments) FY 01 $279,000,000; FY 02 $100,000,000
and FY 03 $500,000,000.
Range
and Average of Financial Assistance:
$360,000 to $591,000,000; Average: $34,000,000.
PROGRAM
ACCOMPLISHMENTS:
$279,000,000 of insurance written in FY 01; approved 6 tax-exempt
leasing programs totaling $27,200,000.
REGULATIONS,
GUIDELINES, AND LITERATURE:
Code of Federal Regulations (Housing and Urban Development) Part
200; Mortgage Insurance for Hospitals, (HUD Handbooks 4615.1; 4615.2)
no charge.
INFORMATION
CONTACTS:
Regional
or Local Office: None.
Headquarters
Office: Office of Insured Health Care Facilities,
Department of Housing and Urban Development, Washington, DC 20410.
Telephone: (202) 708-0599. Division of Facilities Loans, Department
of Health and Human Services, Rockville, MD 20857. Telephone:
(301) 443- 5317.
Web
Site Address: http://www.hud.gov/offices/hsg/hosp/hsghospi.cfm
EXAMPLES
OF FUNDED PROJECTS:
Not applicable.
CRITERIA
FOR SELECTING PROPOSALS:
Not applicable.
