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14.128 Mortgage Insurance_Hospitals
HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
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:
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.
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.
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."
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.
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.
Account Identification: 86-4077-0-3-371.
$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.
Regional or Local Office: None.
EXAMPLES OF FUNDED PROJECTS:
CRITERIA FOR SELECTING PROPOSALS: