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<TD valign="TOP">14.128 MORTGAGE INSURANCE_HOSPITALS</TD>
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<TD valign="TOP"> (242 Hospitals)
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<TD valign="TOP">FEDERAL AGENCY</TD>
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<TD valign="TOP">HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT </TD>
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<TD valign="TOP">AUTHORIZATION</TD>
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<TD valign="TOP">National Housing Act, as amended, Section 242; 12 U.S.C. 1715z-7; Public Law 108-091. </TD>
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<TD valign="TOP">OBJECTIVES</TD>
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<TD valign="TOP">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. </TD>
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<TD valign="TOP">TYPES OF ASSISTANCE</TD>
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<TD valign="TOP">Guaranteed/Insured Loans. </TD>
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<TD valign="TOP">HUD insures lenders against loss on mortgages.  The loans may be used to finance the construction, modernization, equipment, or refinancing of acute care hospitals. </TD>
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<TD valign="TOP">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). </TD>
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<TD valign="TOP">Persons needing the services of these hospitals benefit by using the modernized facilities supported by the insured mortgages. </TD>
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<TD valign="TOP">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 is needed if that State has a Certificate of Need process.  This program is excluded from coverage under OMB Circular No. A-87. </TD>
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<TD valign="TOP">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. </TD>
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<TD valign="TOP">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. </TD>
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<TD valign="TOP">The Federal Housing Commissioner makes final decisions to approve, hold, or reject individual projects. </TD>
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<TD valign="TOP">None. </TD>
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<TD valign="TOP">Range of Approval/Disapproval Time</TD>
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<TD valign="TOP">Processing time depends upon the complexity of the proposal and the degree of preparation by the sponsor. </TD>
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<TD valign="TOP">If an application for mortgage insurance is refused, the reasons for the refusal will be stated.  The applicant may reapply. </TD>
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<TD valign="TOP">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. </TD>
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<TD valign="TOP">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 0.3 percent of the mortgage amount. The HUD inspection fee may not exceed 0.5 percent of the mortgage amount. </TD>
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<TD valign="TOP">The mortgage term is 25 years. </TD>
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<TD valign="TOP">Defaults in meeting the mortgage terms must be reported. Mortgagors are required to submit annual audited financial statements to HUD. Approved mortgagors must furnish copies of their latest financial statements upon request by HUD. </TD>
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<TD valign="TOP">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. </TD>
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<TD valign="TOP">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. </TD>
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<TD valign="TOP">86-4077-0-3-371. </TD>
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<TD valign="TOP">(Mortgage insurance commitments)  FY 07 est $846,348,500; FY 08 est 825,000,000; and FY 09 est $1,100,000,000. </TD>
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<TD valign="TOP">Range and Average of Financial Assistance</TD>
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<TD valign="TOP">$1,950,000 to $278,500,000; $71,911,778. </TD>
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<TD valign="TOP">HUD issued 9 insurance commitments for acute care hospitals in FY 2007.   It is expected that approximately 7 new mortgages will be insured in FY 2008 through Section 242 and 241. </TD>
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<TD valign="TOP">REGULATIONS, GUIDELINES, AND LITERATURE</TD>
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<TD valign="TOP">Code of Federal Regulations (Housing and Urban Development) Part 200; Mortgage Insurance for Hospitals, (HUD Handbooks 4615.1; 4615.2) no charge. </TD>
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<TD valign="TOP">Regional or Local Office</TD>
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<TD valign="TOP">None. </TD>
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<TD valign="TOP">Office of Insured Health Care Facilities, Department of Housing and Urban Development, 451 7th Street, Room 9224, Washington DC 20410. Paul Giaudrone, Senior Financial Analyst. Telephone: (202)708-0599; E-mail: paul.a.giaudrone@hud.gov). </TD>
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<TD valign="TOP"><a href=" http://www.fha.gov/hospitals"> http://www.fha.gov/hospitals</a></TD>
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<TD valign="TOP">RELATED PROGRAMS</TD>
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<TD valign="TOP">14.129, Mortgage Insurance_Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities. </TD>
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<TD valign="TOP">EXAMPLES OF FUNDED PROJECTS</TD>
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<TD valign="TOP">Not applicable. </TD>
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<TD valign="TOP">Not applicable. </TD>
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