Department of Housing and Urban Development May Now Allow Hospitals to Refinance Mortgages Without Construction Requirement

The U.S. Department of Housing and Urban Development has published a proposed rule that would allow hospitals to refinance mortgage debt for purposes other than construction, according to HUD.

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The rule proposed to revise the regulations governing Federal Housing Administration’s Section 242 Hospital Mortgage Insurance Program that currently prohibits hospitals from refinancing debt for purposes other than construction or renovation.

The proposed change comes in response to the economic downturn and tightening access to capital in addition to efforts by the American Hospital Association for the change.

Read HUD’s proposed rule on hospital refinancing (pdf). 

 

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