Hospitals may soon be able to refinance all types of existing loans—including financing related to IT, facility, and equipment needs—under the Section 242 hospital mortgage insurance program, according to a newly proposed rule.
The proposed rule from the U.S. Department of Housing and Urban Development (HUD) eliminates the current requirement that refinancing can only be related to construction or renovation expenditures. “By expanding FHA's Hospital Mortgage Insurance Program … HUD believes it can contribute to alleviating financial stress on hospitals and maintaining the availability of hospitals in many communities,” according to HUD.
Comments on the proposed rule are due by March 30.
