Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities

To provide mortgage insurance to HUD-approved lenders to facilitate the construction or rehabilitation of nursing homes, intermediate care facilities, board and care homes and assisted living facilities, to allow purchase or refinancing with or without repairs of projects not requiring substantial rehabilitation,
and to provide loan insurance to install fire safety equipment.

Agency - Department of Housing and Urban Development

The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.

Office - None.

Applications for mortgage insurance are assembled and underwritten by FHA-Approved Lenders before submittable to HUD for processing of the Firm Commitment (there is also a Prue-application process for projects with new units whereby HUD comments on the market).

Please see the 'General Overview' document posted at www.fha.gov/232lenderprocessing for a list of lenders who work on Section 232 loans.



Program Accomplishments

Not Applicable.

Uses and Use Restrictions

Section 232 insures lenders against loss on mortgage defaults.

Insured mortgages may be used to finance construction or renovation of facilities to accommodate 20 or more patients requiring skilled nursing care and related medical services, or those who while not in need of nursing home care, are in need of minimum but continuous care provided by licensed or trained personnel.

Board and care homes and assisted living facilities are also eligible and must contain a minimum of five accommodations or units.

Nursing homes, intermediate care facilities, board and care homes and assisted living facilities may be combined in the same facility covered by an insured mortgage or may be in separate facilities.

Nursing homes, intermediate care facilities, board and care homes and assisted living facilities must be licensed or regulated by the appropriate state agency, municipality, or other political subdivision where located.

Contractors for new construction and substantial rehabilitation projects must comply with prevailing wage requirements under the Davis-Bacon Act.

Eligibility Requirements

Applicant Eligibility

Eligible mortgagors include investors, builders, developers, public entities, nursing homes and private nonprofit corporations or associations.

Beneficiary Eligibility

Residents requiring skilled nursing, custodial care, and assistance with activities of daily living are eligible to live in a structure whose mortgage is insured under the program.

Credentials/Documentation

Documentation regarding the characteristics of the property and the qualifications of the mortgagor are assembled by the mortgagee and submitted with the application. Certification of need and inspection and licensing by the State agency designated by the Public Health Service Act for the State in which the nursing home or intermediate care facility is to be located is required, or, if no State Agency exists, an alternative market study is required. A Certificate of Need may be required for a board and care home or assisted living facility. A statement from the appropriate State Agency is required stating that the State is in compliance with Section 1616 (e) of the Social Security Act. This facility must be licensed. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.

Aplication and Award Process

Preapplication Coordination

Depending upon the project, an Environmental Impact Study may be required.

An environmental impact statement is required for this program.

An environmental impact assessment is required for this program.

This program is eligible for coverage under E.O.

12372, 'Intergovernmental Review of Federal Programs.' An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedures

This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Applications for mortgage insurance are assembled and underwritten by FHA-Approved Lenders before submittable to HUD for processing of the Firm Commitment (there is also a Pre-application process for projects with new units whereby HUD comments on the market). Please see the 'General Overview' document posted at www.fha.gov/232lenderprocessing for a list of lenders who offer Section 232 loans.

Award Procedures

HUD makes the final decision to approve, or reject individual projects.

Deadlines

Not Applicable.

Authorization

National Housing Act, as amended, Section 232; Housing Act of 1959, as amended, Public Law 86-372; Housing and Urban Development Act of 1969, Public Law 91-152, 73 Stat. 654, 83 Stat. 379; Public Laws 95-128, 95-557, 96-153, and 98-181.

Range of Approval/Disapproval Time

Processing time depends upon the degree of preparation by the sponsor and the completeness of the package submitted by the FHA Approved Lender.

Appeals

If an application for mortgage insurance is refused, HUD will state the reasons for the refusal. If reapplication is desired, the applicant may modify the application and reapply.

Renewals

The term of a commitment to insure may be extended when more time is required to close the loan.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. This program has no matching requirements. This program does not have MOE requirements.

Length and Time Phasing of Assistance

The maximum mortgage term is 40 years for new construction and substantial rehabilitation. The maximum term for existing projects without substantial rehabilitation is 35 years. Method of awarding/releasing assistance: lump sum.

Post Assistance Requirements

Reports

Not Applicable.

Audits

In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. The Department of Housing and Urban Development reserves the right to audit the accounts of either the mortgagee or mortgagor, or lesser, in order to determine their compliance and conformance with HUD regulations and standards. Audited Annual Financial Statement are required of Mortgagor entities and Operators.

Records

Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the FHA regulations.

Financial Information

Account Identification

86-4077-0-3-371.

Obigations

(Guaranteed/Insured Loans) FY 15 $2,770,000,000; FY 16 est $2,765,000,000; and FY 17 est $2,765,000,000

Range and Average of Financial Assistance

No Data Available.

Regulations, Guidelines, and Literature

Fact Sheet: Nursing Homes (Mortgage Insurance); Minimum Property Standards for Nursing Homes; (FHA Regulations). Handbook for Nursing Homes and Intermediate Care Facilities; (4600.1); (FHA Regulations 24 CFR 232 and 200), available on HUDCLIPS at http://www.hudclips.org.; Lean processing information available at www.fha.gov/232lenderprocessing

Information Contacts

Regional or Local Office

None. Applications for mortgage insurance are assembled and underwritten by FHA-Approved Lenders before submittable to HUD for processing of the Firm Commitment (there is also a Prue-application process for projects with new units whereby HUD comments on the market). Please see the 'General Overview' document posted at www.fha.gov/232lenderprocessing for a list of lenders who work on Section 232 loans.

Headquarters Office

Ivy M. Jackson, 451 7th Street, SW Rm 6264 , Washington, District of Columbia 20410 Email: Ivy.M.Jackson@hud.gov Phone: (202) 402-2333.

Criteria for Selecting Proposals

Not Applicable.


Stacy Zoern’s electric-car startup Kenguru is starting to revolutionize mobility for millions of wheelchair users. Her Kenguru hatchback enables users access the vehicle using its rear-opening tailgate and automatic ramp, securing their wheelchairs via interlocking device. It has no seats.




Social Services Jobs in Kansas

  Substance Abuse Jobs
  Human Services Jobs
  Foundation Related Jobs
  Social Work Jobs
  Program Director Jobs