[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2395 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2395

              To provide grants for FHA-insured hospitals.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 28, 2001

 Mr. LaFalce introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
              To provide grants for FHA-insured hospitals.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``FHA-Insured Hospital Conversion and 
Reinvestment Act''.

SEC. 3. GRANTS FOR FHA-INSURED HOSPITALS.

    Section 242 of the National Housing Act (12 U.S.C. 1715z-7) is 
amended by adding at the end the following new subsection:
    ``(i) Grants for FHA-Insured Hospitals.--
            ``(1) Authority and use.--To the extent amounts for use 
        under this subsection are made available pursuant to sections 
        205(i) and 519(g), the Secretary may make grants to eligible 
        FHA-insured hospitals for use only for purposes that the 
        Secretary determines will reduce the risk of default and loss 
        on mortgages for such hospitals that are insured under this 
        section, which shall include--
                    ``(A) carrying out activities to convert excess 
                capacity of the eligible FHA-insured hospital to 
                facilities providing health care and supportive housing 
                for elderly persons and families, including assisted 
                living facilities, nursing homes, and supportive 
                housing for the elderly; and
                    ``(B) assisting in paying debt service for the 
                eligible FHA-insured hospital, including service on 
                debt insured under this section.
            ``(2) Eligible fha-insured hospitals.--For purposes of this 
        subsection, the term `eligible FHA-insured hospital' means a 
        hospital that--
                    ``(A) is subject to a mortgage that is insured 
                under this section;
                    ``(B) would, in the determination of the Secretary, 
                after consultation with the Secretary of Health and 
                Human Services, improve its financial soundness as a 
                result of the proposed activities or costs to be funded 
                with grant amounts under this subsection; and
                    ``(C) has submitted an application to the Secretary 
                for a grant under this subsection in accordance with 
                such requirements as the Secretary shall establish.
            ``(3) Treatment of mortgage insurance.--Notwithstanding any 
        provision of this section or of any contract for mortgage 
        insurance provided pursuant to this section, an eligible FHA-
        insured hospital (or a portion thereof) that is subject to a 
        mortgage insured pursuant to this section may be converted 
        using grant amounts under this subsection. The Secretary shall 
        provide for the uninterrupted continuation of the mortgage 
        insurance coverage for the hospital that is subject to the 
        conversion activities for the duration of the original term of 
        the mortgage insurance contract.
            ``(4) Definitions.--For the purposes of this subsection:
                    ``(A) Assisted living facility; nursing home.--The 
                terms `assisted living facility' and `nursing home' 
                have the meanings given such terms in section 232(b) 
                (12 U.S.C. 1715w(b)).
                    ``(B) Others.--The definitions in section 202(k) of 
                the Housing Act of 1959 (12 U.S.C. 1701q(k)) shall 
                apply.''.

SEC. 4. FUNDING OF GRANTS FROM SURPLUS AMOUNTS IN FHA INSURANCE FUNDS.

    (a) General Insurance Fund Surplus.--Section 519 of the National 
Housing Act (12 U.S.C. 1735c) is amended by adding at the end the 
following new subsection:
    ``(g) Availability of Surplus Amounts for Grants for FHA-Insured 
Hospitals.--
            ``(1) In general.--The amount of any negative credit 
        subsidy that is determined for any fiscal year, for purposes of 
        title V of the Congressional Budget Act of 1974 (2 U.S.C. 661 
        et seq.), and is attributable to the programs referred to in 
        paragraph (2) shall be considered to be new budget authority 
        and shall be available, without fiscal year limitation, for 
        grants under section 242(i).
            ``(2) Covered programs.--The programs referred to in this 
        paragraph are the programs under this Act for insurance of 
        mortgages and loans that, on page 515 of the Appendix to the 
        Budget of the United States Government, Fiscal Year 2001 (H. 
        Doc. 106-162, Vol. II), in the table entitled `Summary of Loan 
        Levels, Subsidy Budget Authority and Outlays by Program', are 
        classified under budget account number 86-0200-0-1-371 and are 
        referred to as `FHA Full Insurance for Health Care Facilities 
        (plus 241/232)', `Health Care Refinances', and `Hospitals'.''.
    (b) Mutual Mortgage Insurance Fund Surplus.--Section 205 of the 
National Housing Act (12 U.S.C. 1711) is amended--
            (1) in subsection (e), by inserting ``or for use for grants 
        pursuant to subsection (i)'' before the comma;
            (2) in subsection (h)(1), by inserting ``may not make 
        grants pursuant to subsection (i),'' after the 4th comma; and
            (3) by adding at the end the following new subsection:
    ``(i) Availability of Surplus Amounts for Hospital Conversion and 
Reinvestment Grants.--Any amounts in the Mutual Mortgage Insurance Fund 
that are determined by the Secretary to be surplus to the amount 
required to meet the operational goals under subsection (h)(2) shall be 
available, without fiscal year limitation, for grants under section 
242(I).''.

SEC. 5. REGULATIONS.

    Not later than 120 days after the date of the enactment of this 
Act, pursuant to the authority in section 211 of the National Housing 
Act, the Secretary shall issue any rules and regulations necessary to 
carry out the amendments made by this Act.
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