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Grant Community.com Catalog of Federal Domestic Assistance Program Descriptions |
CATALOG OF FEDERAL DOMESTIC
ASSISTANCE
14.116: Mortgage Insurance: Group Practice Facilities
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| PROGRAM AND AWARD | FINANCIAL AND INFORMATION CONTACTS |
| ELIGIBILITY REQUIREMENTS | FINANCIAL AND ADMINISTRATIVE INFO. |
| APPLICATION AND AWARD PROCESS | INFORMATION CONTACTS |
| RELATED PROGRAMS | ASSISTANCE CONSIDERATIONS |
| PROGRAM ACCOMPLISHMENTS | POST ASSISTANCE REQUIREMENTS |
Applicant Eligibility: Private nonprofit sponsors (1) undertaking to provide comprehensive health care to members or subscribers on a group practice prepayment or fee-for-service basis, or (2) established for the purpose of improving the availability of health care in the community, which will make the group practice facility available to an eligible group. The owner (mortgagor) of the facility must be organized on a nonprofit basis, but may make it available to a practicing group through a lease.
Beneficiary Eligibility: Persons needing medical, dental, osteopathic, optometric or podiatric services are eligible.
Credentials/Documentation: Documentation regarding the characteristics of the property and the qualifications of the mortgagor are assembled by the mortgagee and submitted with the application. This program is excluded from coverage under OMB Circular No. A-87.
Preapplication Coordination: The sponsor will have an initial conference with the local HUD Field Office to determine the preliminary feasibility of the project before an application is submitted. Applications are also subject to review by the local Health Systems Agency. This program is excluded from coverage under OMB Circular No. A-102. An environmental assessment is required for this program. This program is eligible for coverage under E.O. 12372 "Intergovernmental Review of Federal Programs." An applicant should consult the office or officials designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
Application Procedure: HUD procedures divide the process for filing an application for group practice facility mortgage insurance into two stages, the first being the "Preliminary Analysis" and the second being the "Application" itself. There is a $400 fee for preliminary analysis and the proposal may be made by the sponsor by filing a request for Preliminary Analysis, with the appropriate HUD Field Office. Formal application, through an approved mortgagee (lender), may be filed upon invitation after the preliminary analysis. The sponsor will have an initial conference with the local HUD Field Office to determine the preliminary acceptability of the project before a formal application is submitted. This program is excluded from coverage under OMB Circular No. A-110.
Award Procedure: The sponsor submits a formal application through a HUD approved mortgagee to the local HUD Field Office for approval or disapproval.
Deadlines: Deadlines are established on a case-by-case basis by the local HUD field office and are mutually agreed to at the pre-commitment conference.
Range of Approval/Disapproval Time: Processing time, depending upon the degree of preparation by the sponsor, will range from 9 to 12 months from the first conference with HUD to the issuance of a firm commitment.
Appeals: If an application for mortgage insurance is refused, HUD will state the reasons for the refusal. If reapplication is desired, the applicant may modify the application and reapply.
Renewals: The term of a commitment to insure may be extended when more time is required.
Criteria for Selecting Proposals: Not applicable.
Examples of Funded Projects: Not applicable.
Range and Average of Financial Assistance: The maximum insurable mortgage is equal to 90 percent of the estimated replacement cost of the facility, including major movable equipment.
No loans were insured in fiscal year 1999. Loans have not been insured for many years under this program and none are anticipated in fiscal year 2000.
Federal Agency: HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Type of Assistance: Guaranteed/Insured Loans.
Obligations: (Mortgages insured) Reported under program 14.128.
Budget Account Number: 86-4077-0-3-371.
Authorization: National Housing Act, as amended, Title XI, Public Law 89-754; Public Law 93-383, Public Law 96-153, 12 U.S.C. 1749.
Regulations, Guidelines, and Literature: HUD Handbook 4630.1-"Group Medical Practice Facilities," no charge; 24 CFR 1100 et seq.
Regional or Local Office: Persons are encouraged to communicate with the nearest local HUD Field Office. See Catalog Address Appendix IV for a list of offices.
Headquarters Office: Office of Business Products Department of Housing and Urban Development Washington, DC 20110. Phone: (202) 708-0624 Use the same number for FTS.
(See Appendix IV for more contact info.)
Formula and Matching Requirements: The maximum insurable mortgage is equal to 90 percent of the estimated replacement cost of the facility, including major movable equipment. The mortgage insurance premium is one-half percent of the mortgage amount per year. The HUD fees are as follows: (1) for review of feasibility of group - $400; application fee - $3 per $1,000; inspection fee variable, but may not exceed $5 per $1,000. The service charge by the mortgagee may be up to two percent of the total mortgage amount.
Length and Time Phasing of Assistance: The mortgage term may extend for a maximum period of 25 years.
Uses and Use Restrictions: HUD insures lenders against loss on mortgage loans. These loans may be used to finance the construction or rehabilitation of facilities, including major movable equipment, for the provision of preventive, diagnostic, and treatment services by medical, dental, optometric, osteopathic, or podiatric group. No mortgages have been insured under this program in many years.
Reports: Any change of the mortgagor during the period of mortgage insurance must be approved by HUD. Defaults in meeting the mortgage terms must be reported. All mortgagors are required to submit an annual financial statement to FHA. All approved mortgagees at any time upon request by HUD must furnish a copy of their latest financial statement.
Audits: The Department of Housing and Urban Development reserves the right to audit the accounts of either the mortgagee or mortgagor in order to determine their compliance and conformance with HUD regulations and standards.
Records: Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations.
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Last Updated, November, 2000
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