HUD, FHA Promotes Development of Hospitals and Health Care Facilities in Opportunity Zones

HUD announced the Federal Housing Administration (FHA) will offer several incentives to encourage greater development of hospitals and healthcare facilities located in Opportunity Zones in Notice H-2019-10. Effective immediately, FHA is giving priority to Section 232 applications for facilities located in Opportunity Zones. FHA will provide expedited underwriting for Section 232 applications. FHA is also reducing application/exam fees for all Section 242 and Section 232 transactions for facilities in Opportunity Zones.

FHA’s Section 242 Program insures mortgages for acute care hospital facilities ranging from large teaching institutions to small rural critical access hospitals. Similarly, FHA’s Section 232 Program provides mortgage insurance on loans that help finance nursing homes, assisted living facilities and board and care facilities. These programs may be used to finance the purchase, refinance, new construction or substantial rehabilitation of a project.