FHA 242/223(f) Hospital Loans Hospital Refinancing

FHA 232 FHA 242

2013-04-30T10:12:00.001-07:00

After Years of Waiting its HERE FHA 242 223F HOSPITAL REFINANCING

2013-02-08T11:59:00.000-08:00

The Office of Hospital Facilities (OHF), a division of the U.S. Department of Housing and Urban Development (HUD), announced the issuance of a new final rule that revises the regulations governing the Federal Housing Administration’s (FHA) Section 242 Hospital Mortgage Insurance Program. This new rule implements FHA's authority to finance hospital acquisitions and to refinance the capital debt of hospitals that do not have FHA-insured mortgages, without requiring substantial construction or rehabilitation. The final rule will be officially published in the Federal Register on February 5, 2013. LINK
Call 773-259-7074 Chuck Kendall to refinance
We work for you save money now before rates rise any more!!! 25 year fixed rate low 4% fixed

I'd rather climb up into bed with a rattlesnake than have #MITT #ROMNEY as PRESIDENT #FHA killer #HUD RURAL HOSPITAL NURSING HOME APARTMENT FINANCE AFFORDABLE RENTAL LARGEST SINGLE FAMiLY LENDER

2012-04-17T08:59:00.001-07:00

I'd rather climb up into bed with a rattlesnake than have #MITT #ROMNEY as PRESIDENT #FHA killer #HUD RURAL HOSPITAL NURSING HOME APARTMENT FINANCE AFFORDABLE RENTAL LARGEST SINGLE FAMiLY LENDER

Cook County Health seeks early expansion of Medicaid

2012-01-05T06:14:00.001-08:00

Cook County Health seeks early expansion of Medicaid

The Cook County Health and Hospitals System is seeking approval to add thousands of uninsured patients to the Medicaid rolls nearly two years early, a move that could generate millions of dollars in new revenue for the cash-strapped network.

Approval would mean that the public health system would be reimbursed for some of the roughly $550 million of annual free care it now provides. Cook County health system executives decline to say how much revenue they expect to gain. The system treats about 100,000 uninsured patients a year, though that includes people who are ineligible for Medicaid.

The additional revenue could reduce the annual subsidy — $252 million for 2012 — that county taxpayers pay to keep the health system afloat.

Pushing the application through is at the top of the health system’s “life or death” list for financial survival, said Warren Batts, chairman of the independent hospital board that oversees the health system.

The federal health care overhaul calls for a massive enlargement of the Medicaid program in 2014. The expansion is expected to create competition among health care facilities for Medicaid patients, potentially threatening the Cook County health system’s already weakened finances.

The county health system wants the new Medicaid eligibility rules to be applied to its patients later this year instead of waiting until 2014, when federal health care reform begins. Such a move would give the public hospital system a competitive head start on serving the new Medicaid patients.

“When 2014 comes, almost all the people that we would treat would have Medicaid available to them, and unless we perform with a very good patient focus, we’ll end up with a fairly sizable operation with even greater need for a subsidy because we won’t have offsetting revenues coming from regular Medicaid patients,” Mr. Batts said.

The Obama administration already has approved an early start to the new Medicaid rules in four states, according to Menlo Park, Calif.-based Kaiser Family Foundation, which specializes in health care policy.

FHA 223(f) FHA 221(d)(4) FHA 232 LEAN FHA 242

2010-03-26T19:26:00.001-07:00

FHA 242 Hospital and Healthcare loan Program Link:

FHA 242

BABS Rates for FHA 242 - 25 year fixed rate self amortizing loan

2010-01-12T18:55:00.000-08:00

Currently Rates on BABS loans are running about 5.50% to 5.75% before the 35% rebate from the BABS (Build America Bonds), this results in an effective fixed rate for 25 years of 3.65% plus MIP for a twenty five year loan. The FHA process puts the bonds in use during construction draws to generate the rebate from the government during construction. FHA is allowing GNMA AAA insurance for BABS FHA 242 Bonds which means that the borrower does not need a 10% interest reserve. FHA 242 Mortgage insurance can be used to credit enhancee a combination of BABS, Tax-Exempt and/or Taxable Bonds to cover the borrowers needs and to fund issuance costs.

The fixed rate program requires NO - DERIVATIVES or HEDGES of bank credit enhancement programs offered with high annual credit enhancement cost for low floaters.

FHA 242 New Construction and Build America Bonds

2010-01-04T18:53:00.000-08:00

Municipal Hospitals may now use Build America Bonds (BABS) for new construction and rehab of hospitals.

The first FHA 242 BABS deal has been closed and with the 35% interest rate rebate from the BABS bonds the hospital was able to borrow at an effective rate under 4% fixed for 25 years.

Contact Kendall Realty Advisors at (847) 903-7578 for more information.

FHA 242/223(f) Hospital Refinance

2010-01-04T18:48:00.000-08:00

Since 1968 FHA Section 242 Hospital finance has provided for billions of dollars of mortgage financing for Hospitals. Up to this time the FHA 242 Mortgage Insurance for Hospitals has been limited to new construction and substantial rehabilitation properties. Due to the Credit Crisis many banks and private lenders are unable to lend. With no private lending alternatives available FHA quickly reacted.

On July 2, 2009, HUD Secretary Shaun Donavon announced an exciting new program, the FHA Section 242-223(f) Hospital Refinance Program. This program allows thousands of Hospital to refinance tax-exempt municipal bonds and taxable debt using FHA 242/223(f) Mortgage Insurance for replacement Credit Enhancement.

FHA 242-223(f) was created to help finance viable hospitals that have been impacted by the credit crisis. Eligible borrowers must show a 1% increase in interest rates since January 1, 2008 or prove that such an increase is imminent.

For more information go to http://www.kendallrealtyadvisors.com/FHA242FHA223F.html

UPDATE: FHA To Start Insuring Hospital Refinance Loans

2009-07-17T06:05:00.000-07:00

"This refinance program will help hospitals struggling with skyrocketing interest rates and limited credit options," HUD Secretary Shaun Donovan said. "The savings provided through FHA refinancing should also help hospitals decrease the cost of health care, which is a major priority of the Obama administration," Donovan added. WSJLINK

FHA 242/223(f) Rules - At HUD’s discretion there may be no requirement for involvement of a certified accounting firm

2009-07-13T20:35:00.000-07:00

Refinancing is based on solid historical financial statements. Since most hospitals keep detailed audited statements the refinancing process is based on the prior three years statements.

The financial statements and market study may be waived at HUD's discretion if the documentation presents accurate accounting of prior years operation and market demand.

In these cases the processing can start upon invitation to process from FHA.

Contact Scott at (847) 903-7578 for a list of preliminary documentation.

FHA 242 223(f) Hosptial Refinance Bond Credit Enhancement

2009-07-11T14:35:00.000-07:00

The FHA 242 223(f) Hospital refinance program can be used to credit enhance tax-exempt bonds using FHA mortgage insurance. The mortgage insurance give the bonds a AA rating and the bonds can be sold at lower price than unrated bonds. For more information go to FHA 242 223(f) Hospital Refinance

FHA 242/223(f) Hospital Refinance - No Construction Required

2009-07-08T07:49:00.000-07:00

The FHA 242/223(f) program is now taking application for Hospital Refinance without the requirement of construction or repair. Hospitals with less than 20% of the loan proceeds used for upgrades are eligible for this program. In some cases, hospitals with historical and audited documentation of positive cash flow and market need, a market study and/or new audit may not be required. For more information go to FHA 242 FHA 223F

FHA 242/FHA 223(f) Hospital Refinancing

2009-07-06T17:36:00.000-07:00

SUBJECT: Hospital Mortgage Insurance: Section 223(f) Refinancing in Conjunction with

Section 242 Financing

This notice 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.

Eligible entities seeking refinancing under Section 223(f) in conjunction with Section 242 financing (Section 242/223(f)) shall follow FHA’s regulations in 24 CFR part 242, except as modified in this notice to accommodate requirements applicable to Section 223(f) refinancing.

For more details go to FHA 242/223F

FHA 242 Hospital Loans

2009-05-04T11:46:00.000-07:00

The FHA 242 program requires less cash equity than the competition.

FHA 242 can provide up to 90% of the cost compared to 70% using banks.

For more information on Hospital Loans using FHA 242 contact Scott Kendall

at (847) 903-7578 kendallrealty@gmail.com

KENDALL REALTY ADVISORS

FHA Hospital Projects Create Billions in Economic and Community Benefits

2009-04-17T03:45:00.001-07:00

Since the beginning of Fiscal Year 2007, FHA issued 18 mortgage insurance commitments for hospitals all over the United States. These renovation, expansion, and replacement hospital projects are having an immediate and direct impact upon local economies. Construction expenditures for these projects, including worker salaries, supplies, equipment, and other goods and services, are providing a $1.8 billion economic stimulus to these hospitals’ communities.

The expenditures stimulate demand for local businesses and create an economic ripple effect. FHA’s Office of Insured Health Care Facilities and HUD’s Office of Policy Development and Research estimated this impact using the widely-respected IMPLAN economic model. During the construction period alone, the model predicts that the $1.8 billion in construction expenditures creates over 15,700 jobs in the community. The total economic impact of the
$1.8 billion stimulus is $5.1 billion.

The benefits of FHA mortgage insurance will not end when construction is completed on these facilities. New service lines and expanded capacity resulting from the projects spur growth in hospital revenues that ripples through the economy, creating thousands of new, permanent jobs. The model estimates that these 18 projects will create nearly 9,000 permanent jobs in the hospitals’ communities, including nearly 2,400 jobs at the hospitals. Furthermore, with an initial investment of $1.8 billion, the total annual economic impact of these projects is nearly
$1.6 billion.

The mission of FHA’s Office of Insured Health Care Facilities is to facilitate the financing and construction of much-needed facilities through the Section 232 and 242 programs. FHA-insured hospitals are vital contributors to the economic strength and growth of local and regional communities. They are among the largest employers in their service areas, providing jobs and job growth even in times of economic downturn. Their purchases, investments, and construction projects stimulate demand for local businesses, enabling those businesses to expand and create additional jobs. The results of the IMPLAN model demonstrate these facts. Not only do FHA projects help bring enhanced medical care to communities, but they also provide a very powerful economic stimulus to the communities they serve.

Hospital Funding Success Stories

2009-03-24T15:59:00.000-07:00

FHA Hospital Projects Create Billions in Economic and Community Benefits

Since the beginning of Fiscal Year 2007, FHA issued 18 mortgage insurance commitments for hospitals all over the United States. These renovation, expansion, and replacement hospital projects are having an immediate and direct impact upon local economies. Construction expenditures for these projects, including worker salaries, supplies, equipment, and other goods and services, are providing a $1.8 billion economic stimulus to these hospitals’ communities.

The expenditures stimulate demand for local businesses and create an economic ripple effect. FHA’s Office of Insured Health Care Facilities and HUD’s Office of Policy Development and Research estimated this impact using the widely-respected IMPLAN economic model. During the construction period alone, the model predicts that the $1.8 billion in construction expenditures creates over 15,700 jobs in the community. The total economic impact of the
$1.8 billion stimulus is $5.1 billion.

The benefits of FHA mortgage insurance will not end when construction is completed on these facilities. New service lines and expanded capacity resulting from the projects spur growth in hospital revenues that ripples through the economy, creating thousands of new, permanent jobs. The model estimates that these 18 projects will create nearly 9,000 permanent jobs in the hospitals’ communities, including nearly 2,400 jobs at the hospitals. Furthermore, with an initial investment of $1.8 billion, the total annual economic impact of these projects is nearly
$1.6 billion.

The mission of FHA’s Office of Insured Health Care Facilities is to facilitate the financing and construction of much-needed facilities through the Section 232 and 242 programs. FHA-insured hospitals are vital contributors to the economic strength and growth of local and regional communities. They are among the largest employers in their service areas, providing jobs and job growth even in times of economic downturn. Their purchases, investments, and construction projects stimulate demand for local businesses, enabling those businesses to expand and create additional jobs. The results of the IMPLAN model demonstrate these facts. Not only do FHA projects help bring enhanced medical care to communities, but they also provide a very powerful economic stimulus to the communities they serve.

The FHA Hospital Program Fast Processing

2009-01-06T20:58:00.000-08:00

FHA continues to strive to make the FHA 242 Hospital Financing program work better.

They are now allowing more flexibility in processing while the drawings are being finalized.

Check out the new FHA.

FHA HOSPITAL LOANS

2008-12-03T16:18:00.000-08:00

Hospital Facility Loan Program
FHA Section 242 Mortgage Insurance
Financing for Construction, Modernization, Upgrade or Expansion of Acute Care Hospitals

Summary:

Insured mortgages guaranteed by the Federal Housing Administration (FHA), in conjunction with the Department of Health and Human Services (HHS), provides hospitals access to affordable financing for capital needs. The program application process was modified to include Critical Access Hospitals in 1998. FHA insurance enables qualified acute care facilities to enhance creditworthiness due to backing by the full faith and credit of the United States Government.

Eligible Borrowers:

• Single Asset Entity
• For profit or non-profit owners

Terms:

• Up to 25 Years plus construction or substantial rehabilitation period

Loan Benefits:

• Non-recourse construction and permanent financing.
• Credit enhancement of Tax-Exempt Housing Bonds providing AAA rating

Eligible Properties:

• Acute care facilities with proper licensing
• Critical access hospitals are allowed to use 25 beds in any mix of acute and skilled level care with an additional 10 each for psychiatry, and for acute rehabilitation (total 45 beds)
Mortgage Interest Rates:

• Fixed for the length of the mortgage

Mortgage Loan Limitations:

• 90% LTC (not to exceed 90% LTV)
• Maximum loan term of 25 years
• FHA application fees of 0.3% (0.15% paid at closing)
• Fixed annual insurance premium of 0.5% of remaining balance
• Debt coverage at 1.25 to 1.0
• No limit on insurable amount
• Monthly payments into a mortgage reserve fund equal to one year’s debt service after five years’ debt service after ten years, accessible for debt service after 15 years
• Lender commitment and placement fee determined by size and scope of project
• One-time FHA inspection fee of 0.5%