SECTION 242 NEWS
Through its Section 242 mortgage insurance program, FHA has supported and strengthened hundreds of hospitals and communities across the country. Please visit the links below for press releases, articles, and features on hospitals that have accessed capital through the Section 242 program.
Section 242 Pre-Screening Tool (for potential applicants)
Medical University of South Carolina (MUSC) - The Federal Housing Administration (FHA) announced that its Office of Hospital Facilities has completed a refinance transaction on April 7, 2022 for the Medical University Hospital Authority (MUHA) of South Carolina.
Russell Medical Center - In January 2017, Russell Medical Center in Alexander City, AL, lowers the interest rate on the hospital's $30 million mortgage by 1.7% through a Section 242/223(f) refinancing.
Union Hospital - In October 2016, Union Hospital in Terra Haute, Indiana, closed on a $266.6 million mortgage refinancing achieved under Section 242's 223(f) program.
Kaleida Health - In October 2014, Kaleida Health hosted a ceremonial groundbreaking for the John R. Oishei Children's Hospital, made possible through fundraising, state support, and a $120 million HUD-insured loan. The loan is the sixth HUD financing for the Buffalo, New York-based Kaleida Health System.
St. Barnabas Hospital - St. Barnabas Hospital in the Bronx, New York, began a $20 million project in June 2014 to replace its 100-year old boiler-powered heating/cooling system, which will save the hospital millions in annual energy costs and ensure that the facility has a reliable source of energy for years to come. This project was made possible by an $86 million Section 223(a)7 refinancing loan that closed in 2013, which allowed the hospital to refinance its debt and fund critical repairs.
St. John's Lutheran Hospital - In August 2012, HUD issued a $32 million commitment to build a replacement facility for a 60-year old critical access hospital in Libby, Montana, saving an estimated $21 million in interest costs over the life of the loan.
Rio Grande Hospital - As OHF rolls out streamlined guidance for its Section 223a(7) refinancing program for portfolio hospitals, FHA approves a $10.7 million refinancing for Rio Grande Hospital.
Parkview Community Hospital - As the first hospital refinancing loan issued under the 242/223(f) refinancing program in April 2011, this Riverside, California hospital was able to achieve $3.1 million in annual debt service savings with its FHA-insured 223(f) refinancing.
Russell Medical Center - January 2017 - On January 10, 2017, HUD closes on a $30.2 million refinancing of Russell Medical Center in Alexander City, AL.
Medical University Hospital Authority - September 2016 - On September 7, 2016, HUD issued an insurance commitment for a $316 million Section 241 supplemental loan to the Medical University Hospital Authority teaching hospital in Charleston, South Carolina.
Knox Community Hospital - January 2012 - Knox Community Hospital in Mt. Vernon, Ohio, closed on a 25-year fixed rate loan that will save the hospital an expected $8.4 million in interest expenses with FHA insurance over the life of the loan.
How to Take Advantage of HUD's Hospital Mortgage Insurance Program - HFMA Newsletter, May 1, 2013
Even in Today's Economy, Creative Solutions Get Hospital Projects Built - HealthLeadersMedia.com, April 30, 2010.