Mortgage Insurance-Hospitals (14.128)

 

Program

14.128 Mortgage Insurance-Hospitals

 

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.

 

Program Number

14.128

 

Last Known Status

Active

 

Objectives

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.

 

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

Preapplication 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." Recipients should consult the office or the official designated as the single point of contact in its respective State for more information on the process the State requires to be followed when funds are used for the planning or the construction (reconstruction or rehabilitation) of water or sewer facilities.

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

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.

 

Program Accomplishments

$150,000,000 of insurance written in FY 2002.

 

Financial Information

Account Identification

86-4077-0-3-371.

Obligations

(Mortgage insurance commitments) FY 02 $148,859,200; FY 03 est $550,000,000; and FY 04 est $700,000,000.

Range and Average of Financial Assistance

$360,000 to $591,000,000; $34,000,000.

 

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.

 

Related Programs

14.129, Mortgage Insurance_Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities.

 

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.