II

107TH CONGRESS

1ST SESSION S. 1128

To provide grants for FHA-insured hospitals.

IN THE SENATE OF THE UNITED STATES

JUNE 28, 2001

Mrs. CLINTON introduced the following bill; which was read twice and referred

to the Committee on Banking, Housing, and Urban Affairs

A BILL

To provide grants for FHA-insured hospitals.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘FHA-Insured Hospital

5 Conversion and Reinvestment Act of 2001’’.

6 SEC. 2. GRANTS FOR FHA-INSURED HOSPITALS.

7 Section 242 of the National Housing Act (12 U.S.C.

8 1715z–7) is amended by adding at the end the following:

9 ‘‘(i) GRANTS FOR FHA-INSURED HOSPITALS.—

10 ‘‘(1) AUTHORITY AND USE.—To the extent that

11 amounts for use under this subsection are made

12 available pursuant to section 519(g), the Secretary
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1 may make grants to eligible FHA-insured hospitals

2 for use only for purposes that the Secretary deter3 mines will reduce the risk of default and loss on

4 mortgages for those hospitals, which purposes shall

5 include—

6 ‘‘(A) carrying out activities to convert the

7 excess capacity of an eligible FHA-insured hos8 pital to facilities that provide health care and

9 supportive housing for elderly persons and fam10 ilies, including assisted living facilities, nursing

11 homes, and supportive housing for the elderly;

12 and

13 ‘‘(B) assisting in paying debt service for an

14 eligible FHA-insured hospital, including service

15 on debt insured under this section.

16 ‘‘(2) TREATMENT OF MORTGAGE INSURANCE.—

17 ‘‘(A) IN GENERAL.—Notwithstanding any

18 provision of this section or of any contract for

19 mortgage insurance provided pursuant to this

20 section, an eligible FHA-insured hospital (or a

21 portion of an eligible FHA-insured hospital)

22 may be converted in accordance with paragraph

23 (1)(A), using grant amounts under this sub24 section.
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1 ‘‘(B) CONTINUING COVERAGE.—The Sec2 retary shall provide for the uninterrupted con3 tinuation of the mortgage insurance coverage

4 for a hospital that is converted in accordance

5 with paragraph (1)(A), for the duration of the

6 original term of the mortgage insurance con7 tract.

8 ‘‘(3) DEFINITIONS.—As used in this subsection:

9 ‘‘(A) ASSISTED LIVING FACILITY; NURSING

10 HOME.—The terms ‘assisted living facility’ and

11 ‘nursing home’ have the same meanings as in

12 section 232 (12 U.S.C. 1715w).

13 ‘‘(B) ELDERLY PERSON.—The term ‘elder14 ly person’ has the same meaning as in section

15 202(k) of the Housing Act of 1959 (12 U.S.C.

16 1701q(k)).

17 ‘‘(C) ELIGIBLE FHA-INSURED HOS18 PITALS.—The term ‘eligible FHA-insured hos19 pital’ means a hospital that—

20 ‘‘(i) is subject to a mortgage that is

21 insured under this section;

22 ‘‘(ii) would, in the determination of

23 the Secretary, after consultation with the

24 Secretary of Health and Human Services,

25 improve its financial soundness as a result
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1 of the proposed activities or costs to be

2 funded with grant amounts under this sub3 section; and

4 ‘‘(iii) has submitted an application to

5 the Secretary for a grant under this sub6 section, in accordance with such require7 ments as the Secretary shall establish.

8 ‘‘(D) SUPPORTIVE HOUSING FOR THE EL9 DERLY.—The term ‘supportive housing for the

10 elderly’ has the same meaning as in section

11 202(k) of the Housing Act of 1959 (12 U.S.C.

12 1701q(k)).

13 ‘‘(4) FUNDING.—In addition to any amounts

14 made available under section 519(g), there are au15 thorized to be appropriated for grants under this

16 subsection, such sums as may be necessary for each

17 of fiscal years 2002 through 2006.’’.

18 SEC. 3. FUNDING OF GRANTS FROM SURPLUS AMOUNTS IN

19 FHA INSURANCE FUNDS.

20 (a) GENERAL INSURANCE FUND SURPLUS.—Section

21 519 of the National Housing Act (12 U.S.C. 1735c) is

22 amended by adding at the end the following:

23 ‘‘(g) AVAILABILITY OF SURPLUS AMOUNTS FOR

24 GRANTS FOR FHA-INSURED HOSPITALS.—
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1 ‘‘(1) IN GENERAL.—The amount of any nega2 tive credit subsidy that is determined for any fiscal

3 year for purposes of title V of the Congressional

4 Budget Act of 1974 (2 U.S.C. 661 et seq.), and is

5 attributable to the programs referred to in para6 graph (2) shall be considered to be new budget au7 thority and shall be available, without fiscal year

8 limitation, for grants under section 242(i).

9 ‘‘(2) COVERED PROGRAMS.—The programs re10 ferred to in this paragraph are the programs under

11 this Act for insurance of mortgages and loans that

12 are classified under budget account number 86–

13 0200–0–1–371 and are referred to as ‘FHA Full In14 surance for Health Care Facilities (plus 241/232)’,

15 ‘Health Care Refinances’, and ‘Hospitals’ on page

16 515 of the Appendix to the Budget of the United

17 States Government, Fiscal Year 2001 (H. Doc. 106–

18 162, Vol. II), in the table entitled ‘Summary of

19 Loan Levels, Subsidy Budget Authority and Outlays

20 by Program’.’’.

21 SEC. 4. REGULATIONS.

22 Not later than 120 days after the date of enactment

23 of this Act, pursuant to the authority in section 211 of

24 the National Housing Act (12 U.S.C. 1715b), the Sec-
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1 retary shall issue such rules and regulations as may be

2 necessary to carry out the amendments made by this Act.

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