NAPH and AHA Press for Changes to FHA Mortgage Insurance Programs for Hospitals - February 17, 2010

NAPH and AHA Press for Changes to FHA Mortgage Insurance Programs for Hospitals On January 25, the Committee on Healthcare Financing, on behalf of a coalition of national health care associations, convened a meeting with Federal Housing Administration (FHA) Commissioner Stevens to discuss the specific needs of hospitals—particularly those that serve as safety nets—to maintain access to capital through the economic crisis. Present at the meeting were Larry Gage, President of NAPH, along with leaders from the American Hospital Association and other health care associations. The meeting focused on desired changes to the National Housing Act (NHA) Sections 232 and 242, which establish programs for eligible hospitals to obtain mortgage insurance. This meeting comes in conjunction with efforts by the coalition to amend the NHA through legislation, focusing on a variety of issues, including rules to provide safety net hospitals greater flexibility in participating in these financing programs. The legislation would also allow hospitals participating in FHA’s 242 program to refinance mortgages under the 223(f) program, without requiring such refinancing to be connected to the expenditure of funds for construction or renovation, although Housing and Urban Development (HUD) recently issued a proposed rule to this effect.