The Federal Housing Administration's (FHA) Office of Hospital Facilities has issued a new final rule that revises regulations governing its Section 242 Hospital Mortgage Insurance Program.
Section 242 provides mortgage insurance for acute care hospital facilities. The new rule follows a record level of lending volume during fiscal year 2012.
‘We issued this new rule to codify FHA's implementation of its authority to finance hospital acquisitions and to refinance the capital debt of hospitals that do not have FHA-insured mortgages, without conditioning the exercise of such authority on the expenditure of funds for construction or rehabilitation,’ said Roger Miller, deputy assistant secretary with the U.S. Department of Housing and Urban Development's Office of Healthcare Programs, during a panel session at the Mortgage Bankers Association's Commercial Real Estate Finance/Multifamily Housing Convention & Expo in San Diego.
The new rule, which takes effect on March 7, is now online.
