Health care facilities in need of mortgage or long-term leasehold financing have an alternative to traditional institutional financing thanks to the Section 232 Program offered by the U.S. Department of Housing and Urban Development (HUD).
Section 232 of the National Housing Act of 1934 (12 U.S.C. § 1715w) established federally insured mortgage loans for the owners of certain long-term health care facilities. Section 232 is a loan product, insured by the Federal Housing Administration (FHA), for the housing of the “frail elderly,” i.e., those in need of supportive services. These FHA-insured loans are often one of the few mortgage or leasehold financing alternatives available to health care facilities for the acquisition, new construction, refinancing or substantial rehabilitation of eligible health care projects.
