Opinion: FHA has a fix for hospital tax-exempt financing

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Written by Steve Hunt, Love Funding | November 21, 2017 | Published by Becker's Hospital Review The Tax Cuts and Jobs Act passed by the House of Representatives on November 16 held an unwelcome surprise for non-for-profit hospitals: the elimination of tax-exempt financing for 501(c)(3) organizations, among other things. However, the Senate markup, dated November 14, was a bit more tolerable. Below is a summary of tax reform provisions being discussed on the Hill, which could increase borrowing costs for not-for-profit hospitals, and how the FHA 242 hospital program could benefit more hospitals as a result: [/fusion_text][fusion_separator style_type="none" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="rgba(234,232,232,0)" top_margin="5px" bottom_margin="5px" border_size="2" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_button link="https://www.beckershospitalreview.com/legal-regulatory-issues/fha-has-a-fix-for-tax-reform-s-potential-hit-to-501-c-3-hospital-tax-exempt-financing.html" title="Click to read the full article on Becker's Hospital Review" target="_blank" link_attributes="" alignment="" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" color="default" button_gradient_top_color="" button_gradient_bottom_color="" button_gradient_top_color_hover="" button_gradient_bottom_color_hover="" accent_color="" accent_hover_color="" type="" bevel_color="" border_width="" size="" stretch="default" shape="" icon="" icon_position="left" icon_divider="no" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]Continue Reading[/fusion_button][fusion_separator style_type="none" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="rgba(234,232,232,0)" top_margin="10px" bottom_margin="10px" border_size="2" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text] The views, opinions and positions expressed within these guest posts are those of the author alone and do not represent those of Becker's Hospital Review/Becker's Healthcare. The accuracy, completeness and validity of any statements made within this article are not guaranteed. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.

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[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container admin_label="Expert Title Bar" hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" enable_mobile="no" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" video_preview_image="" border_size="" border_color="" border_style="solid" margin_top="" margin_bottom="" padding_top="50px" padding_right="" padding_bottom="20px" padding_left=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" spacing="" center_content="no" hover_type="none" link="" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" 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margin_top="" margin_bottom="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset="" last="no"][fusion_imageframe image_id="5901" style_type="none" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="none" lightbox="no" gallery_id="" lightbox_image="" alt="Steven Hunt" link="https://www.lovefunding.com/about-love-funding/steven-hunt/" linktarget="_blank" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]/sites/lovefunding/files/lovefunding-image/2017/05/Steve-Hunt-Love-Funding-FHA-Lender-Love-Funding-FHA-Lender.jpg[/fusion_imageframe][/fusion_builder_column][fusion_builder_column type="3_4" layout="1_3" spacing="" center_content="no" hover_type="none" link="" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" 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style_type="single solid" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#115e67" top_margin="-15" bottom_margin="" border_size="1" icon="" icon_circle="" icon_circle_color="" width="100%" alignment="left" /][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container admin_label="Loan Program Tabs" hundred_percent="no" equal_height_columns="no" menu_anchor="loan-programs" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" enable_mobile="no" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" video_preview_image="" border_size="" border_color="" border_style="solid" margin_top="" margin_bottom="" padding_top="" padding_right="" padding_bottom="" padding_left=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" spacing="" center_content="no" hover_type="none" link="" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="left top" background_repeat="no-repeat" border_size="0" border_color="" border_style="solid" border_position="all" padding="" dimension_margin="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset="" last="no"][fusion_text] The information available here will guide you the loan process and give you a sense of the documentation we’ll need to process your transaction. Upon engagement, we will customize these materials based on your asset and the type of financing that best suits your needs. As always, we are available to answer any questions or concerns you may have. [/fusion_text][fusion_tabs design="classic" layout="horizontal" justified="yes" backgroundcolor="" inactivecolor="" bordercolor="rgba(245,245,245,0)" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id=""][fusion_tab title="Term Sheets" icon=""] HUD's loan program for acute care hospitals (including critical access hospitals) provides financing for the new construction, expansion, modernization, equipment and refinancing of existing debt. Love Funding has deep experience executing a variety of hospital finance transactions, including FHA 242, new market tax credits, traditional bond financing and USDA loans. [fusion_accordion boxed_mode="" border_size="1" border_color="" background_color="" hover_color="" divider_line="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id=""][fusion_toggle title="Acquisition or Refinance Loan | HUD 242/223(f)" open="no"][fusion_button link="/sites/lovefunding/files/lovefunding-image/2017/08/FHA-242-223f-Term-Sheet.pdf" title="Click to download a loan program summary" target="_blank" link_attributes="" alignment="right" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" color="custom" button_gradient_top_color="" button_gradient_bottom_color="" button_gradient_top_color_hover="" button_gradient_bottom_color_hover="" accent_color="" accent_hover_color="" type="" bevel_color="" border_width="" size="small" stretch="default" shape="" icon="" icon_position="left" icon_divider="no" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]DOWNLOAD TERM SHEET[/fusion_button] Non-recourse, assumable financing for the purchase or refinance of existing hospitals. The costs of new capital projects (i.e., construction and/or equipment) may be included in the loan, provided they are less than 20% of the loan amount. Facility must be a licensed acute care hospital.  Borrower may be non-profit, for-profit or a public entity. [/fusion_toggle][fusion_toggle title="Streamlined Refinance Loan | HUD 242/223(a)(7)" open="no"][fusion_button link="/sites/lovefunding/files/lovefunding-image/2017/08/FHA-242-223a7.pdf" title="Click to download a loan program summary" target="_blank" link_attributes="" alignment="right" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" color="custom" button_gradient_top_color="" button_gradient_bottom_color="" button_gradient_top_color_hover="" button_gradient_bottom_color_hover="" accent_color="" accent_hover_color="" type="" bevel_color="" border_width="" size="small" stretch="default" shape="" icon="" icon_position="left" icon_divider="no" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]DOWNLOAD TERM SHEET[/fusion_button] Streamlined FHA program designed to allow borrowers with existing FHA insured loans to lower the interest rate, extend the term, fund project repairs and increase the replacement reserve. All borrowers with existing 242 mortgages may apply for FHA mortgage insurance under this program. [/fusion_toggle][fusion_toggle title="New Construction, Modernization or Expansion Loan | HUD 242" open="no"][fusion_button link="/sites/lovefunding/files/lovefunding-image/2017/08/FHA-242-Term-Sheet.pdf" title="Click to download a loan program summary" target="_blank" link_attributes="" alignment="right" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" color="custom" button_gradient_top_color="" button_gradient_bottom_color="" button_gradient_top_color_hover="" button_gradient_bottom_color_hover="" accent_color="" accent_hover_color="" type="" bevel_color="" border_width="" size="small" stretch="default" shape="" icon="" icon_position="left" icon_divider="no" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]DOWNLOAD TERM SHEET[/fusion_button] Mortgage insurance for acute care hospitals – including Critical Access Hospitals – for loans to finance new construction, expansion, modernization, equipment, and refinancing of existing debt. U.S. Government backing of financing results in AA/AAA credit rating enabling hospitals to obtain very attractive interest rates. [/fusion_toggle][/fusion_accordion] [/fusion_tab][fusion_tab title="HUD Guidance" icon=""]

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