Mortgage Insurance-Hospitals (14.128)

Program

14.128 Mortgage Insurance-Hospitals

Federal Agency

Agency: Department of Housing and Urban Development
Office: Office Of Housing-federal Housing Commissioner

Authorization

242, 1715z U.S.C.

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 (this requirement has been eliminated for hospitals specifically designated as Critical Access Hospitals as part of Public Law 108-091).

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 propoert 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 is needed if that State has a Certificate of Need process. This program is excluded from coverage under OMB Circular No. A-87. This program is excluded from coverage under OMB Circular No. A-87.

Application and Award Process

Preapplication Coordination

Preapplication coordination is required. Environmental impact information is not required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. 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 applications.

Deadlines

Not Applicable.

Range of Approval/Disapproval Time

From 60 to 90 days. Processing time depends upon the complexity of the proposal and the degree of preparation by the sponsor. 60 days is the goal for non-complicated applications.

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 typically effective for 90 days from the date of issuance and may be extended for good cause.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula.

This program has no matching requirements.

This program does not have MOE requirements.

Length and Time Phasing of Assistance

The mortgage term is 25 years. See the following for information on how assistance is awarded/released: insurance of advances for construction projects.

Post Assistance Requirements

Reports

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. 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

Not Applicable.

Financial Information

Account Identification

86-4077-0-3-371.

Obligations

(Guaranteed/Insured Loans) FY 08 $714,821,300; FY 09 est $1,400,000,000; FY 10 est $900,000,000

Range and Average of Financial Assistance

No Data Available.

Regulations, Guidelines and Literature

Not Applicable.

Related Programs

Not Applicable.

Information Contacts

Regional or Local Office

None.

Headquarters Office

Paul A. Giaudrone 451 7th Street, SW, Washington, District of Columbia 20410 Email: paul.a.giaudrone@hud.gov Phone: (202) 402-5684

Web Site Address

http://www.fha.gov/hospitals.

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Not Applicable.