Nursing Homes & Assisted Living Facilities
In 1959, Congress expanded the National Housing Act to allow the Federal Government, acting through the Federal Housing Commissioner, to insure loans made to urgently needed nursing homes. Over the years, Congress broadened that authority to include board and care facilities and assisted living facilities. This program, known as the Section 232 program, is administered by the U.S. Department of Housing and Urban Development’s (HUD) Office of Residential Care Facilities, based in Washington, D.C.
The Committee has worked closely with HUD to adapt the Section 232 program to the changing needs of the seniors’ housing and health care industry. In addition to working with HUD to update regulations and handbooks, the Committee played a key role in HUD’s transformation of how the Section 232 program is administered. HUD implemented a new LEAN processing protocol with the help of countless Committee members just as the demand for Section 232 skyrocketed. As the credit markets retreated during the Great Recession, HUD and Committee members worked together to improve the Section 232 requirements and processes so that today the Section 232 loan program maintains one of the lowest default rates at HUD while simultaneously insuring a record loan volume.
For more information about Section 232 requirements, please go to HUD’s Office of Healthcare Program’s website at:
An Association of Health Care Finance Bankers and Consultants
COMMITTEE ON HEALTHCARE FINANCING