8.21.09 – Mortgage Insurance for Health Care Facilities

The Department of Housing and Urban Development (HUD) has made it easier for not-for-profit hospitals to finance their debt through the Federal Housing Administration’s Section 242 Mortgage Insurance Program for Hospitals. Notice H 09-05 issued on July 1, 2009 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.”

For additional information on this program visit the Federal Housing Administration webpage.