The Housing and Urban Development Department said that hospitals with rising interest costs may now refinance loans through the agency without a requirement to spend 20% of the loan on construction.
HUD relaxes requirement on loan refinancing
The HUD Office of Insured Health Care Facilities said in a notice that the change comes as a result of the economic downturn, which has hampered hospital and other healthcare providers' access to credit needed for capital investments or existing debt obligations. To be eligible, hospitals must have experienced an interest rate increase of at least 1% since Jan. 1, 2008, “as a result of the credit crisis” or show that they will soon see such an increase.
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