I
107TH CONGRESS
1ST SESSION
H. R. 2395
To provide grants for FHA-insured hospitals.
IN THE HOUSE OF REPRESENTATIVES
JUNE 28, 2001
Mr. LAFALCE introduced the following bill; which was referred to the
Committee on Financial Services
A BILL
To provide grants for FHA-insured hospitals.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘FHA-Insured Hospital
Conversion and Reinvestment Act’’.
SEC. 3. GRANTS FOR FHA-INSURED HOSPITALS.
Section 242 of the National Housing Act (12 U.S.C.
1715z–7) is amended by adding at the end the following
new subsection:
‘‘(i) GRANTS FOR FHA-INSURED HOSPITALS.—
‘‘(1) AUTHORITY
AND
USE.—To the extent
amounts for use under this subsection are made
available pursuant to sections 205(i) and 519(g), the
Secretary may make grants to eligible FHA-insured
hospitals for use only for purposes that the Sec-
retary determines will reduce the risk of default and
loss on mortgages for such hospitals that are insured
under this section, which shall include—
‘‘(A) carrying out activities to convert ex-
cess capacity of the eligible FHA-insured hos-
pital to facilities providing health care and sup-
portive housing for elderly persons and families,
including assisted living facilities, nursing
homes, and supportive housing for the elderly;
and
‘‘(B) assisting in paying debt service for
the eligible FHA-insured hospital, including
service on debt insured under this section.
‘‘(2) ELIGIBLE FHA-INSURED HOSPITALS.—For
purposes of this subsection, the term ‘eligible FHA-
insured hospital’ means a hospital that—
‘‘(A) is subject to a mortgage that is in-
sured under this section;
‘‘(B) would, in the determination of the
Secretary, after consultation with the Secretary
of Health and Human Services, improve its fi-
nancial soundness as a result of the proposed
activities or costs to be funded with grant
amounts under this subsection; and
‘‘(C) has submitted an application to the
Secretary for a grant under this subsection in
accordance with such requirements as the Sec-
retary shall establish.
‘‘(3) TREATMENT OF MORTGAGE INSURANCE.—
Notwithstanding any provision of this section or of
any contract for mortgage insurance provided pursu-
ant to this section, an eligible FHA-insured hospital
(or a portion thereof) that is subject to a mortgage
insured pursuant to this section may be converted
using grant amounts under this subsection. The Sec-
retary shall provide for the uninterrupted continu-
ation of the mortgage insurance coverage for the
hospital that is subject to the conversion activities
for the duration of the original term of the mortgage
insurance contract.
‘‘(4) DEFINITIONS.—For the purposes of this
subsection:
‘‘(A) ASSISTED LIVING FACILITY; NURSING
HOME.—The terms ‘assisted living facility’ and
‘nursing home’ have the meanings given such
terms in section 232(b) (12 U.S.C. 1715w(b)).
‘‘(B) OTHERS.—The definitions in section
202(k) of the Housing Act of 1959 (12 U.S.C.
1701q(k)) shall apply.’’.
SEC. 4. FUNDING OF GRANTS FROM SURPLUS AMOUNTS IN
FHA INSURANCE FUNDS.
(a) GENERAL INSURANCE FUND SURPLUS.—Section
519 of the National Housing Act (12 U.S.C. 1735c) is
amended by adding at the end the following new sub-
section:
‘‘(g) AVAILABILITY
OF SURPLUS AMOUNTS
FOR
GRANTS FOR FHA-INSURED HOSPITALS.—
‘‘(1) IN GENERAL.—The amount of any nega-
tive credit subsidy that is determined for any fiscal
year, for purposes of title V of the Congressional
Budget Act of 1974 (2 U.S.C. 661 et seq.), and is
attributable to the programs referred to in para-
graph (2) shall be considered to be new budget au-
thority and shall be available, without fiscal year
limitation, for grants under section 242(i).
‘‘(2) COVERED PROGRAMS.—The programs re-
ferred to in this paragraph are the programs under
this Act for insurance of mortgages and loans that,
on page 515 of the Appendix to the Budget of the
United States Government, Fiscal Year 2001 (H.
Doc. 106–162, Vol. II), in the table entitled ‘Sum-
mary of Loan Levels, Subsidy Budget Authority and
Outlays by Program’, are classified under budget ac-
count number 86–0200–0–1–371 and are referred to
as ‘FHA Full Insurance for Health Care Facilities
(plus 241/232)’, ‘Health Care Refinances’, and ‘Hos-
pitals’.’’.
(b) MUTUAL MORTGAGE INSURANCE FUND SUR-
PLUS.—Section 205 of the National Housing Act (12
U.S.C. 1711) is amended—
(1) in subsection (e), by inserting ‘‘or for use
for grants pursuant to subsection (i)’’ before the
comma;
(2) in subsection (h)(1), by inserting ‘‘may not
make grants pursuant to subsection (i),’’ after the
4th comma; and
(3) by adding at the end the following new sub-
section:
‘‘(i) AVAILABILITY OF SURPLUS AMOUNTS FOR HOS-
PITAL CONVERSION AND REINVESTMENT GRANTS.—Any
amounts in the Mutual Mortgage Insurance Fund that are
determined by the Secretary to be surplus to the amount
required to meet the operational goals under subsection
(h)(2) shall be available, without fiscal year limitation, for
grants under section 242(I).’’.
SEC. 5. REGULATIONS.
Not later than 120 days after the date of the enact-
ment of this Act, pursuant to the authority in section 211
of the National Housing Act, the Secretary shall issue any
rules and regulations necessary to carry out the amend-
ments made by this Act.
Æ