Mortgage insurance requirements for private and public hospitals--Office of the Assistant Secretary for Housing--Federal Housing Commissioner. HUD. Proposed rule.

The Department proposes to amend its regulations governing the insurance of mortgages for hospitals in two significant ways. First, this rule would provide for the eligibility of public hospitals to obtain federal mortgage insurance for rehabilitation or new construction. This revision comports with recently enacted legislation. Second, the rule would contain new provisions designed to protect the Department's General Insurance Fund with respect to the insuring of projects that would otherwise pose and added insurance risk. The Supplementary Information section of this preamble invites comment on alternative proposals that would achieve this latter goal, while permitting hospitals to obtain needed financing. The Department's final rule will reflect its consideration of public comments received, as well as the feasibility of implementing any of these alternative programs.