Congress has revised the Protecting American Taxpayers and Homeowners Act of 2013 to establish new standards for the hospital mortgage insurance program rather than repeal it.
A previous version of the bill — which the House Committee on Financial Services held a hearing on last week — would have repealed the Federal Housing Administration's Section 242 Hospital Mortgage Insurance Program. The American Hospital Association had asked lawmakers to preserve the program.
Section 242 allows acute-care hospitals to obtain low-interest, highly rated mortgages. In March, the U.S. Department of Housing and Urban Development issued a final rule that amended the program to allow hospitals without FHA-issued mortgages to access loans or refinance through the program without requiring new construction or renovation.
Today, the House Committee on Financial Services will mark up the revised PATH Act. The amended legislation would require the Secretary of HUD to set standards for the mortgage insurance program to ensure that a reasonable percentage of the mortgages are obtained by hospitals that lack access to other financing for the purpose of serving low- and moderate-income populations.
The HUD Secretary would also have to limit the amount of mortgages granted through the program to hospitals owned by a single entity or person.Furthermore, the revised PATH Act would require the FHA to study the impact of geographic concentration in the program.
More Articles on Hospital Finances:
Congress Considers Repealing Hospital Refinancing Program
A New FHA Section 242/223(f) Refinancing Program offers Hospitals Access to Low, Fixed Interest Rate Debt
HUD Unveils New Refinancing Program for Hospitals