The Department of Housing and Urban Development has created a new option to use federal mortgage insurance to purchase or refinance existing hospitals.
For more details, check out the opening section of the notice:
SUBJECT: Hospital Mortgage Insurance: Section 223(f) Refinancing in Conjunction with Section 242 Financing
This notice advises that FHA is immediately implementing its authority under section 223(f) of the National Housing Act to provide, in conjunction with financing under Section 242 of the National Housing Act, refinancing of debt for hospitals, without conditioning such refinancing on new construction or renovation as is the current program requirement.
Eligible entities seeking refinancing under Section 223(f) in conjunction with Section 242 financing (Section 242/223(f)) shall follow FHA’s regulations in 24 CFR part 242, except as modified in this notice to accommodate requirements applicable to Section 223(f) refinancing.
In addition to issuance of this notice, HUD will be publishing a rule that proposes to amend the regulations in 24 CFR part 242 to incorporate the provisions applicable to Section 223(f) refinancing as presented in this notice, and therefore make refinancing under Section 223(f) a permanent component of the Section 242 Hospital Mortgage Insurance Program. That rule will provide a 60-day public comment, and FHA encourages review and comment on that rule, which incorporates the provisions in this notice.
Eligible entities seeking financing under Section 242/223(f) may submit an application in accordance with the provisions provided in this notice, or entities may opt to defer submission of an application until the completion of rulemaking and in anticipation of any changes to Section 223(f) refinancing that entities believe are important before seeking Section 223(f) refinancing.
If you have any questions concerning this notice, please contact the Office of Insured Health Care Facilities at 202-708-0599.