[Federal Register Volume 77, Number 131 (Monday, July 9, 2012)]
[Proposed Rules]
[Pages 40310-40314]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-16559]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 232

[Docket No. FR-5537-P-01]
RIN-2502-AJ04


Federal Housing Administration (FHA) Section 232 Healthcare 
Mortgage Insurance Program: Partial Payment of Claims

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would amend the regulations governing FHA's 
Section 232 Healthcare Mortgage Insurance program (Section 232 
program). The Section 232 program insures mortgage loans to facilitate 
the construction, substantial rehabilitation, purchase, and refinancing 
of nursing homes, intermediate care facilities, board and care homes, 
and assisted-living facilities. The amendments proposed by this rule 
would reduce risk to the FHA insurance fund by establishing the 
criteria and process by which FHA will accept and pay a partial payment 
of the claim under the FHA mortgage insurance contract. Through 
acceptance and payment of a partial payment of claim, FHA pays the 
lender a portion of the unpaid principal balance and recasts a portion 
of the mortgage under terms and conditions determined by FHA, as an 
alternative to the lender assigning the entire mortgage to HUD. Partial 
payment of claim would also allow FHA insured healthcare projects to 
continue operating and providing services.

DATES: Comment Due Date: September 7, 2012.

ADDRESSES: Interested persons are invited to submit comments regarding

[[Page 40311]]

this proposed rule to the Regulations Division, Office of General 
Counsel, Department of Housing and Urban Development, 451 7th Street 
SW., Room 10276, Washington, DC 20410-0500. Communications must refer 
to the above docket number and title. There are two methods for 
submitting public comments. All submissions must refer to the above 
docket number and title.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street SW., Room 10276, 
Washington, DC 20410-0500.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt by HUD, and enables HUD to make them immediately available to 
the public. Comments submitted electronically through the 
www.regulations.gov Web site can be viewed by other commenters and 
interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.

    Note: To receive consideration as public comments, comments must 
be submitted through one of the two methods specified above. Again, 
all submissions must refer to the docket number and title of the 
rule.

    No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
    Public Inspection of Public Comments. All properly submitted 
comments and communications submitted to HUD will be available for 
public inspection and copying between 8 a.m. and 5 p.m. weekdays at the 
above address. Due to security measures at the HUD Headquarters 
building, an appointment to review the public comments must be 
scheduled in advance by calling the Regulations Division at 202-708-
3055 (this is not a toll-free number). Individuals with speech or 
hearing impairments may access this number via TTY by calling the 
Federal Relay Service at 800-877-8339. Copies of all comments submitted 
are available for inspection and downloading at www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Roger E. Miller, Deputy Assistant 
Secretary, Office of Healthcare Programs, Office of Housing, Department 
of Housing and Urban Development, 451 7th Street SW., Room 6264, 
Washington, DC 20410-8000; telephone 202-708-0599 (this is not a toll-
free number). Persons with hearing or speech disabilities may access 
this number through TTY by calling the toll-free Federal Relay Service 
at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    FHA's Section 232 program insures mortgage loans to facilitate the 
construction, substantial rehabilitation, purchase, and refinancing of 
nursing homes, intermediate care facilities, board and care homes, and 
assisted-living facilities. A project may include more than one type of 
facility and financing, and a combination of these uses is acceptable. 
The Section 232 program is authorized under the National Housing Act 
(12 U.S.C. 1715w). HUD's regulations for the Section 232 program are 
codified in 24 CFR part 232. While many aspects of HUD's healthcare 
facility operations, including the basic contract and eligibility 
requirements, are governed by the regulations applicable to HUD's 
multifamily mortgage insurance programs, separate healthcare 
regulations have been adopted to address program operations specific to 
healthcare facilities, such as state licensing requirements.\1\
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    \1\ The regulations codified at 24 CFR part 200 (entitled 
``Introduction to FHA programs'') set forth, in a single location of 
the Code of Federal Regulations, requirements that are generally 
applicable to FHA programs. The regulations at 24 CFR 232.2 require 
that facilities meet state licensing requirements.
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    One process well-established and long used in HUD's multifamily 
housing programs is acceptance of partial payment of claims (PPCs). 
Under the PPC process, FHA pays the mortgagee a portion of the unpaid 
principal balance and recasts a portion of the mortgage under terms and 
conditions determined by the FHA Commissioner (the Commissioner), as an 
alternative to assigning the entire mortgage. Prior to processing the 
PPC, the mortgagee must voluntarily agree to accept a partial payment 
of the insurance claim in accordance with the terms and conditions 
established by the Commissioner. The mortgagee must also waive any 
prepayment and lock out provisions in the mortgage.
    Congress granted FHA authority to allow PPCs for subsidized insured 
multifamily properties in the Housing and Community Development 
Amendments of 1978 (12 U.S.C. 1701z-11). The legislative history 
reflects that a mortgagee's participation in a partial payment was 
voluntary and based on its own determination that such an arrangement 
would be in the mortgagee's own best interests.\2\ In the Housing and 
Community Development Act of 1980 (12 U.S.C. 1701z-11), Congress 
expanded FHA's authority to allow partial payments of claims beyond 
subsidized projects to nonsubsidized multifamily rental housing project 
insured under the National Housing Act. In the Multifamily Housing 
Property Disposition Reform Act of 1994 (12 U.S.C. 1735f-19), a statute 
primarily directed to a broad overhaul of multifamily program 
operations, Congress clarified the voluntary nature of the PPC process 
and the program coverage. The regulations implementing the statutory 
authority to accept PPCs, which FHA adopted in 1985, and which are 
codified in Sec.  207.258b, specifically excluded FHA's Section 232 
program from the multifamily PPC process. (See 24 CFR 232.251(a).)
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    \2\ Legislative History (H. Rep. No. 95-1792, 95th Congress, 2nd 
session) cited the preamble to the final rule establishing the 
regulations for PPCs. The cited preamble language is found at 50 FR 
38784 (September 24, 1985).
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    In 1997, Congress specifically authorized PPCs for the Section 232 
program. (See 12 U.S.C. 1735f-19.) However, the regulatory provisions 
governing the multifamily programs, which predated the 1997 statutory 
amendments, were not revised to reflect the statutory authority to use 
PPCs for healthcare facilities. Thus, the current regulations for the 
multifamily programs establishing the procedures and criteria for 
partial payments of claims for properties insured under other FHA 
programs are not applicable to the Section 232 program.

II. This Proposed Rule

    This proposed rule would provide, in regulation, the procedures and 
criteria for FHA to determine when PPCs should be considered and paid 
for healthcare facilities. To date, HUD has accepted PPCs in the 
Section 232 program on a periodic basis, but HUD has concluded that the 
criteria and procedures for granting PPCs in the Section 232 program 
should be established and codified in regulation.
    In developing regulations governing PPCs in the Section 232 
program, the current regulations governing PPCs, codified at 24 CFR 
207.258b, for the multifamily programs serve as a helpful starting 
base. Additionally, this proposed rule is informed by FHA's experience 
implementing the PPC process in its multifamily housing programs, and 
FHA's experience in utilizing PPCs in the Section 232

[[Page 40312]]

program on a periodic and temporary basis.
    This proposed rule adds a new Sec.  232.882, entitled ``Partial 
Payment of Claims,'' to the Section 232 program regulations in 24 CFR 
part 232. This new section provides that if the mortgagee elects to 
assign a mortgage to the Commissioner, under certain circumstances the 
Commissioner may request the mortgagee to accept a partial payment of 
the claim. The proposed PPC regulations for the Section 232 program 
differ from the current regulations establishing the PPC process for 
the multifamily programs primarily because the focus of the Section 232 
program is on healthcare facilities. While FHA must make a finding for 
multifamily programs that the project is, or potentially could serve 
as, a low- and moderate-income housing resource, the proposed PPC 
regulations for the Section 232 program provide for FHA to review, in 
its underwriting evaluation, the continued viability of the healthcare-
specific aspects of the project. FHA must find that the project meets 
community healthcare needs, and will have sound management and project 
operation. Under the statute, FHA must make a determination that a PPC 
would be less costly to the government than other reasonable 
alternatives and would keep the healthcare facility operational to 
serve community needs.\3\ The proposed rule specifies that requirement 
in Sec.  232.882.
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    \3\ See section 210 of the Department of Veterans Affairs and 
Housing and Urban Development Act of 1998. Public Law 105-65, 
approved October 27, 1997.
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    In addition, in an effort to ensure that the project will continue 
to be viable, and therefore beneficial to accept and pay the PPC, the 
proposed rule provides for certain determinations to be made. 
Specifically, FHA must find, as provided in proposed Sec.  
232.882(b)(4), that the current or proposed operator of the facility is 
satisfactory, as demonstrated by past experience in operating similar 
type healthcare facilities and by state regulatory performance 
evaluations. An example of the type of information that FHA may require 
is surveys/assessments by the state regulatory agency regarding the 
subject facility's performance. If there are outstanding deficiencies 
identified by the state regulatory authority or the Centers for 
Medicare and Medicaid Services, then FHA anticipates that an applicant 
would provide materials to FHA clearly establishing how those matters 
would be fully resolved.
    In addition, FHA must determine that the default under the insured 
mortgage was beyond the control of the borrower and/or operator, or, in 
the case of a transfer of physical assets, the proposed borrower or 
operator, unless FHA determines that any borrower/operator deficiencies 
giving rise to the default have clearly been addressed. (See proposed 
Sec.  232.882(b)(5).) For a new operator, for example, FHA would review 
information about the entity's experience and performance.
    It should be noted that FHA's partial payment of claim is made 
pursuant to the contract of mortgage insurance between FHA and the 
mortgage lender, which are the only parties to the contract. Borrowers 
and operators are neither parties to the contract of insurance, nor are 
they third-party beneficiaries, and thus they do not have any rights or 
expectations in regard to any decision made by FHA to accept or reject 
a mortgagee's request for a partial payment of claim.
    Further, FHA must specifically find that the project is serving or 
potentially could serve as a needed nursing home, intermediate care 
facility, board and care home, or assisted living facility. (See 
proposed Sec.  232.882(b)(6).) Such a finding might be supported by a 
review of, for example, a market-need study or a project comprehensive 
needs assessment.
    Other requirements specified in the proposed rule mirror the 
requirements for PPCs for multifamily projects. The proposed rule 
provides that FHA must find that:
     The mortgagee is entitled, after a default, to assign the 
mortgage in exchange for the payment of insurance benefits (see 
proposed Sec.  232.882(b)(1));
     The relief resulting from partial payment, when considered 
with other resources available to the project, would be sufficient to 
restore the financial viability of the project (see proposed Sec.  
232.882(b)(2));
     The project is or can (at reasonable cost) be made 
structurally sound (see proposed Sec.  232.882(b)(3));
     The default under the insured mortgage was beyond the 
control of the owner (see proposed Sec.  232.882(b)(5));
     The property covered by the mortgage is free and clear of 
all liens other than the insured first mortgage and other liens 
approved by the Commissioner (see proposed Sec.  232.882 (c)(1));
     The mortgagee has voluntarily agreed to accept a PPC under 
the mortgage insurance contract and to recast the remaining mortgage 
amount under terms and conditions prescribed by the Commissioner (see 
proposed Sec.  232.882(c)(2)); and
     The owner has agreed to repay to the FHA Commissioner an 
amount equal to the partial payment, with the obligation secured by a 
second mortgage on the project containing terms and conditions 
prescribed by the FHA Commissioner. The terms of the second mortgage 
will be case-specific to ensure that the estimated project income will 
be sufficient to cover estimated operating expenses and debt service on 
the recast insured mortgage (see proposed Sec.  232.882(c)(3)).
    By establishing a standard process and criteria for acceptance and 
payment of PPCs in the Section 232 program, partial payment of claims 
may occur more frequently than they do now in the Section 232 program, 
not only resulting in savings to the FHA insurance fund, but helping to 
restore a project to financial stability.

III. Costs and Benefits of Rule

    In providing mortgage insurance for skilled nursing, intermediate 
care, assisted living, and board and care facilities, as compared to 
multifamily residential or other commercial properties, FHA's Section 
232 program poses a significantly different risk to FHA because these 
facilities are designed specifically for healthcare use and may not 
retain the mortgaged value at resale due to a lack of alternative uses. 
Thus, when HUD becomes the mortgagee following a claim, the recovery 
rate--the sales price as a percentage of the unpaid balance--may be 
lower for healthcare facilities than for other types of properties.
    HUD is proposing in this rule to establish standards for the use of 
PPC to minimize losses in the Section 232 program. Rather than paying 
the full claim to the lender, a PPC involves FHA and the lender 
restructuring the unpaid mortgage balance and accrued interest into two 
mortgages: One held by the lender and the second held by HUD. The 
lender's modified FHA-insured mortgage would range from 50 percent to 
75 percent of the remaining unpaid principal balance. HUD's loan would 
include the remainder of the unpaid balance and the accrued interest.
    The lenders, FHA, and the facility owners each benefit from the use 
of PPCs. The lender receives a portion of the unpaid balance, the full 
unpaid interest, and a performing loan. This is a method of curing the 
default with FHA rather than the borrower paying the lender. FHA avoids 
a full claim payment and sale of the mortgage and is entitled to be 
repaid the partial claim payment with interest. The facility owners 
receive restructured debt and are able to continue operating the

[[Page 40313]]

facility, which is also beneficial to the community that the facility 
serves.
    The accompanying more detailed cost-benefit analysis is based on 
the Section 232 current portfolio, and based on the characteristics of 
the portfolio and the few cases where PPC was used in the program. FHA 
expects the typical mortgage accepted for PPC would range from $5 
million to $20 million (original amount) and would occur 3 to 7 years 
after origination, following 10 to 30 months of delinquency. The 
savings to HUD equals the difference between the full claim amount and 
the partial claim paid, minus the discounted amount HUD receives from 
the HUD-held post-PPC mortgage.
    Use of PPC also allows an assisted living, skilled nursing, board 
and care, or intermediate care facility to remain open to serve its 
residents and community. The extent of this benefit varies with the 
local market for long-term care. In smaller, less competitive markets, 
the facility may be the only option for its residents. In this case, if 
the facility were to close, residents and their families will have 
higher search and relocation costs, since local options would be 
limited, possibly requiring residents to have to relocate to another 
city or state. However, in larger, more competitive markets, residents 
may be able to find an alternative facility of similar cost and quality 
in the same community. In any event, residents will face relocation 
costs and possibly higher room rates or end up in a lower-quality 
facility.
    The benefits of allowing PPC in the Section 232 program total 
$891,000 per facility, which stem from avoided costs of moving by the 
facility's residents. Transfers totaling $2.874 million occur from FHA 
and lenders that opt for PPC to FHA borrowers, as the avoided costs 
allow FHA premiums to not increase. FHA expects approximately five PPCs 
annually in the section 232 program. Aggregating these effects produces 
annual benefits of $4.455 million and annual transfers of $14.369 
million. For the full cost-benefit analysis, please see HUD's docket on 
www.regulations.gov under the docket number of FR-5537-P-01.

IV. Findings and Certifications

Information Collection Requirements

    The information collection requirements contained in this proposed 
rule have been submitted to the Office of Management and Budget (OMB) 
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). In 
accordance with the Paperwork Reduction Act, an agency may not conduct 
or sponsor, and a person is not required to respond to, a collection of 
information, unless the collection displays a currently valid OMB 
control number.
    The burden of the information collections in this proposed rule is 
estimated as follows:

                                       Reporting and Recordkeeping Burden
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                                                                                     Estimated
                                                                     Number of     average time      Estimated
                Section reference                    Number of     responses per        for        annual burden
                                                    respondents     respondent      requirement     (in hours)
                                                                                    (in hours)
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24 CFR 232.882..................................              10               1             100           1,000
                                                 ---------------------------------------------------------------
    Totals......................................              10               1             100           1,000
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     In accordance with 5 CFR 1320.8(d)(1), HUD is soliciting comments 
from members of the public and affected agencies concerning this 
collection of information to:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated 
collection techniques or other forms of information technology; e.g., 
permitting electronic submission of responses.
    Interested persons are invited to submit comments regarding the 
information collection requirements in this rule. Comments must refer 
to the proposal by name and docket number (FR-5537-P-01) and be sent 
to:

HUD Desk Officer, Office of Management and Budget, New Executive Office 
Building, Washington, DC 20503, Fax number: 202-395-6947, and
Reports Liaison Officer, Office of Housing, Department of Housing and 
Urban Development, 451 Seventh Street SW., Room 9116, Washington, DC 
20410-8000.

    Interested persons may submit comments regarding the information 
collection requirements electronically through the Federal eRulemaking 
Portal at http://www.regulations.gov. HUD strongly encourages 
commenters to submit comments electronically. Electronic submission of 
comments allows the commenter maximum time to prepare and submit a 
comment, ensures timely receipt by HUD, and enables HUD to make them 
immediately available to the public. Comments submitted electronically 
through the http://www.regulations.gov Web site can be viewed by other 
commenters and interested members of the public. Commenters should 
follow the instructions provided on that site to submit comments 
electronically.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
generally requires an agency to conduct a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities.
    This rule is directed to strengthening HUD's Section 232 program by 
establishing a process and criteria by which the FHA may allow partial 
payment of claims for Section 232 projects. Establishment of this 
process also opens up another means by which healthcare project owners 
can restore troubled projects to financial stability. Acceptance of 
PPCs helps healthcare project owners and operators to lower project 
debt, and continue to provide valued healthcare services to the 
communities they serve. This established process for acceptance of PPCs 
will help all healthcare project owners, large and small. Accordingly, 
the undersigned certifies that this rule will not have a significant 
economic

[[Page 40314]]

impact on a substantial number of small entities.
    Notwithstanding HUD's determination that this rule will not have a 
significant effect on a substantial number of small entities, HUD 
specifically invites comments regarding any less burdensome 
alternatives to this rule that will meet HUD's objectives as described 
in this preamble.

Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been made, in accordance with HUD regulations at 24 CFR part 50, 
which implement section 102(2)(C) of the National Environmental Policy 
Act of 1969 (42 U.S.C. 4332(2)(C)). That finding is available for 
public inspection between the hours of 8 a.m. and 5 p.m. weekdays in 
the Regulations Division, Office of General Counsel, Department of 
Housing and Urban Development, 451 7th Street SW., Room 10276, 
Washington, DC 20410-0500. Due to security measures at the HUD 
Headquarters building, please schedule an appointment to review the 
finding by calling the Regulations Division at 202-402-3055 (this is 
not a toll-free number).

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on state and local 
governments and is not required by statute, or the rule preempts state 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. This rule will not have federalism 
implications and would not impose substantial direct compliance costs 
on state and local governments or preempt state law within the meaning 
of the Executive Order.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.1531-
1538) (UMRA) establishes requirements for federal agencies to assess 
the effects of their regulatory actions on state, local, and tribal 
governments, and on the private sector. This proposed rule does not 
impose any federal mandates on any state, local, or tribal governments, 
or on the private sector, within the meaning of UMRA.

Catalogue of Federal Domestic Assistance

    The Catalogue of Federal Domestic Assistance Number for the 
Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board 
and Care Homes, and Assisted Living Facilities program is 14.129.

List of Subjects in 24 CFR Part 232

    Fire prevention, Health facilities, Loan programs--health, Loan 
programs--housing and community development, Mortgage insurance, 
Nursing homes, Reporting and recordkeeping requirements.

    Accordingly, for the reasons cited in the preamble, HUD proposes to 
amend part 232 of title 24 of the Code of Federal Regulations as 
follows:

PART 232--MORTGAGE INSURANCE FOR NURSING HOMES, INTERMEDIATE CARE 
FACILITIES, BOARD AND CARE HOMES, AND ASSISTED LIVING FACILITIES

    1. The authority citation for 24 CFR part 232 is revised to read as 
follows:

    Authority: 12 U.S.C. 1715b, 1715w, 1735f-19; 42 U.S.C. 3535(d).

    2. Add Sec.  232.882 to read as follows:


Sec.  232.882  Partial payment of claims.

    (a) When a lender for a loan on a healthcare project becomes 
eligible to file an insurance claim and to assign the mortgage to the 
Commissioner pursuant to Sec.  232.865, the Commissioner may request 
the lender, in lieu of assignment, to accept a partial payment of the 
claim under the mortgage insurance contract and to recast the mortgage, 
under such terms and conditions as the Commissioner may determine.
    (b) The Commissioner may request the lender to participate in a 
partial payment of claim in lieu of assignment only after a 
determination that partial payment would be less costly to the Federal 
Government than other reasonable alternatives for maintaining the 
project and would keep the healthcare facility operational to serve 
community needs. In addition to any findings that may be provided in 
other guidance, the Commissioner shall base the determination on the 
findings listed below:
    (1) The lender is entitled, after a default as defined in Sec.  
232.830, to assign the mortgage in exchange for the payment of 
insurance benefits;
    (2) The relief resulting from partial payment when considered with 
other resources available to the project would be sufficient to restore 
the financial viability of the project;
    (3) The project is or can (at reasonable cost) be made physically 
sound;
    (4) The current or proposed operator of the facility is 
satisfactory to the Commissioner, as demonstrated by past experience in 
operating similar type healthcare facilities and by state regulatory 
performance;
    (5) The default under the insured mortgage was beyond the control 
of the borrower and/or operator, or in the case of a transfer of 
physical assets (TPA), the proposed borrower or operator, unless the 
Commissioner determines that any borrower/operator deficiencies giving 
rise to the default have clearly been addressed; and
    (6) The project is serving as, or potentially could serve as, a 
needed nursing home, intermediate care facility, or board and care 
home, or assisted living facility.
    (c) Partial payment of a claim under this section shall be made 
only when:
    (1) The property covered by the mortgage is free and clear of all 
liens other than the insured first mortgage and such other liens as the 
Commissioner may have approved;
    (2) The lender has voluntarily agreed to accept a PPC under the 
mortgage insurance contract and to recast the remaining mortgage amount 
under terms and conditions prescribed by the Commissioner; and
    (3) The borrower has agreed to repay to the Commissioner an amount 
equal to the partial payment, with the obligation secured by a second 
mortgage on the project containing terms and conditions prescribed by 
the Commissioner. The terms of the second mortgage will be determined 
on a case-by-case basis to ensure that the estimated project income 
will be sufficient to cover estimated operating expenses and debt 
service on the recast insured mortgage. The Commissioner may provide 
for postponed amortization of the second mortgage.
    (d) Payment of insurance benefits under this section shall be in 
cash.
    (e) A lender receiving a partial payment of claim, following the 
Commissioner's endorsement of the mortgage for full insurance under 24 
CFR part 252, will pay HUD a fee in an amount set forth through Federal 
Register notice. HUD, in its discretion, may collect this fee or deduct 
the fee from any payment it makes in the claim process.

    Dated: June 28, 2012.
Carol J. Galante,
Acting Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2012-16559 Filed 7-6-12; 8:45 am]
BILLING CODE 4210-67-P