[Congressional Record Volume 153, Number 167 (Wednesday, October 31, 2007)]
[Senate]
[Pages S13625-S13626]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. STABENOW (for herself and Mr. Cochran):
  S. 2270. A bill to include health centers in the list of entities 
eligible for mortgage insurance under the National Housing Act; to the 
Committee on Banking, Housing, and Urban Affairs.
  Ms. STABENOW. Mr. President, today I am pleased to introduce the 
Community Health Center Capital Investment Act. I also thank my 
colleague, Senator Thad Cochran of Mississippi, for joining me in 
sponsoring this critical legislation. Health centers in both our states 
are committed to serving more people, and our legislation will give 
them a little help to do just that.
  One of our most important investments in our health-care system is

[[Page S13626]]

funding the Community Health Center program. According to the National 
Association of Community Health Centers, health centers provide 
comprehensive primary and preventive care to over 16 million people--
including nearly 7 million uninsured--each year in more than 6,000 
urban and rural communities.
  One of my initial pledges when I first ran for the Senate was to 
increase the number of community health centers in Michigan. Since I 
became a Senator, there are new 15 community health centers or access 
points in Michigan. I am also so pleased to have had the support of so 
many of my colleagues in increasing funding for community health center 
grants. This year, 64 Senators signed the Stabenow-Bond funding 
request, and we were pleased that the Senate Labor-HHS-Education 
Appropriations bill will provide an additional $250 million increase 
for community health centers. This increased funding will help reach 
nearly 2 million people next year.
  But even as we provide assistance to community health centers for 
operations, we cannot forget their capital needs such as renovating 
older buildings, purchasing new equipment, and investing in health 
information technology. But in general, without specific authorization 
in Federal law, health centers cannot use current grant dollars for 
construction, modernization, or expansion of facilities.
  According to NACHC, one out of three health centers currently 
operates in buildings that are 30 years old or older. The average cost 
of a facility project is estimated to be $2.3 million. Many centers 
borrow funds for these purposes at rates that could be, and should be, 
lower.
  Kim Sibilsky, the executive director of the Michigan Primary Care 
Association, wrote me: ``The majority of Michigan's 34 community Health 
Center organizations were founded in the middle and late 1970s, and 
many of their 160 community-based sites are located in facilities that 
require renovation to meet the changing health care needs of their 
communities. More readily available renovation dollars will assist 
Michigan Health Centers in improving access to quality health care for 
Michigan residents.''
  One simple solution would be granting access for community health 
centers to use the facility assistance programs at the Department of 
Housing and Urban Development. If health centers were able to access 
HUD's loan guarantee and mortgage insurance program through the Title 
XI Small Medical Group Facilities Program, they would have an important 
tool with which to address facility concerns.
  The legislation we are introducing today is a small clarification to 
the Title XI Program to ensure that health centers can obtain mortgage 
insurance under the program. But this small change will have a huge 
reward for our safety-net providers. It will allow them to lower the 
interest rate on the money they borrow, and therefore lower the cost of 
the project for the center. This savings will be translated directly to 
increased patient care.
  I ask unanimous consent that the letter of support be printed in the 
Record.
  There being no objection, the material was ordered to be placed in 
the Record, as follows:

                                           National Association of


                               Community Health Centers, Inc.,

                                                 October 25, 2007.
     Hon. Debbie Stabenow,
     Hart Senate Office Building,
     Washington, DC
     Hon. Thad Cochran,
     Dirksen Senate Office Building,
     Washington, DC
       Dear Senator Stabenow and Senator Cochran: On behalf of the 
     National Association of Community Health Centers, the 
     advocate voice for our nation's Community, Migrant, Public 
     Housing and Homeless Health Centers and the 16 million 
     patients they serve, I am writing to offer our strong 
     endorsement of your bipartisan legislation the ``Community 
     Health Center Capital Investment Act.''
       America's Health Centers commend you for your leadership in 
     introducing this important legislation to expand access to 
     federal grants for capital improvements in the nation's 1,100 
     federally qualified health centers. As the health care home 
     for 16 million people in more than 6,000 urban and rural 
     locations, health centers provide high quality, comprehensive 
     primary and preventive care for children and adults. Each 
     year as the number of patients served at health centers 
     continues to increase, so will the need for modernization and 
     construction of new health center facilities.
       Your proposal is a significant step forward toward 
     improving access to primary health care across the country. A 
     recent survey in twelve states found that nearly two-thirds 
     of health centers need to expand or modernize their current 
     buildings, while some areas need to construct new facilities 
     to treat the growing number of patients in their communities. 
     Today, health centers have limited access to federal grants 
     for facility improvements and struggle to raise sufficient 
     capital to meet the $2.3 million average cost of facility 
     projects. By ensuring that health centers have access to the 
     Housing and Urban Department's loan guarantee and mortgage 
     insurance program through the Title XI Small Medical Group 
     Facilities Program, health centers will have an important 
     tool to address these facility concerns.
       We greatly applaud your legislation to ensure that the 
     nation's health centers will be authorized to access HUD's 
     loan guarantee and mortgage insurance programs for the 
     construction, modernization and expansion of their 
     facilities. Your leadership on this issue will significantly 
     improve the health and well-being of our nation's medically 
     underserved.
       Again, thank you for your sponsorship of the ``Community 
     Health Center Capital Investment Act.'' America's Health 
     Centers are proud to endorse your legislation and offer their 
     active support in helping to secure its enactment.
           Sincerely,

                                        Craig A. Kennedy, MPH,

                                         Associate Vice President,
                                        Federal and State Affairs.

  Mr. COCHRAN. Mr. President, community health centers provide care for 
over 15 million patients nationwide each year and are a critical part 
of our country's health care network. Many of these centers operate out 
of buildings that are in need of modernization or expansion. Current 
law limits access to federal funds to community health centers for any 
type of construction, modernization, or expansion. Therefore, the only 
funds available to community health centers for facilities are through 
congressionally directed spending.
  We are introducing a bill today to include community health centers 
as eligible recipients for funding through the Department of Housing 
and Urban Development's Small Medical Group Facilities Program. Under 
this competitive program, community health centers will be able to 
access loan guarantees and mortgage insurance, thus giving them a tool 
to address their facility concerns and by doing so, better serve their 
patients.
  I am pleased to offer this legislation that will help improve access 
to and quality of community health center care.
                                 ______