Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities
Program Funding
Annual program obligations reported to SAM.gov.
Program Objective
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.
Eligibility
Eligible Applicants
- Nonprofit Organization
- For-Profit Organization
Eligible mortgagors include investors, builders, developers, public entities, nursing homes and private nonprofit corporations or associations.
Beneficiaries
- Unrestricted by Individual Type
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.
How to Apply
Award Procedure
HUD makes the final decision to approve, or reject individual projects.
Processing time depends upon the degree of preparation by the sponsor and the completeness of the package submitted by the FHA Approved Lender.
Program details & compliance
Description
Provides mortgage insurance for residential care facilities, Nursing homes, assisted living, facilities, board and care.
Mission Categories
Primary: Property and Mortgage Insurance
Use of Funds
Allowed Uses
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.
Required 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.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart F — Audit Requirements