117 STAT. 1158 PUBLIC LAW 108–91—OCT. 3, 2003
Public Law 108–91
108th Congress
An Act
To amend section 242 of the National Housing Act regarding the requirements
for mortgage insurance under such Act for hospitals.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled ,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Hospital Mortgage Insurance
Act of 2003’’.
SEC. 2. STANDARDS FOR DETERMINING NEED AND FEASIBILITY FOR
HOSPITALS.
(a) I NGENERAL .—Paragraph (4) of section 242(d) of the
National Housing Act (12 U.S.C. 1715z–7) is amended to readas follows:
‘‘(4)(A) The Secretary shall require satisfactory evidence that
the hospital will be located in a State or political subdivision ofa State with reasonable minimum standards of licensure andmethods of operation for hospitals and satisfactory assurance thatsuch standards will be applied and enforced with respect to thehospital.
‘‘(B) The Secretary shall establish the means for determining
need and feasibility for the hospital, if the State does not havean official procedure for determining need for hospitals. If theState has an official procedure for determining need for hospitals,the Secretary shall require that such procedure be followed beforethe application for insurance is submitted, and the applicationshall document that need has also been established under thatprocedure.’’.
(b) E
FFECTIVE DATE.—
(1) I N GENERAL .—The amendment made by subsection (a)
shall take effect and apply as of the date of the enactmentof this Act.
(2) E
FFECT OF REGULATORY AUTHORITY .—Any authority of
the Secretary of Housing and Urban Development to issueregulations to carry out the amendment made by subsection(a) may not be construed to affect the effectiveness or applica-bility of such amendment under paragraph (1) of this sub-section.
SEC. 3. EXEMPTION FOR CRITICAL ACCESS HOSPITALS.
(a) I NGENERAL .—Section 242 of the National Housing Act
(12 U.S.C. 1715z–7) is amended—
(1) in subsection (b)(1)(B), by inserting ‘‘, unless the facility
is a critical access hospital (as that term is defined in sectionApplicability.12 USC 1715z–7
note.12 USC 1701
note.Hospital
MortgageInsurance Act of2003.Oct. 3, 2003
[H.R. 659]
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LEGISLATIVE HISTORY—H.R. 659:
HOUSE REPORTS: No. 108–27 (Comm. on Financial Services).
CONGRESSIONAL RECORD, Vol. 149 (2003):
Mar. 12, considered and passed House.Sept. 2, considered and passed Senate, amended.Sept. 17, House concurred in Senate amendment.1861(mm)(1) of the Social Security Act (42 U.S.C.1395x(mm)(1)))’’ after ‘‘tuberculosis’’; and
(2) by adding at the end the following:
‘‘(i) T
ERMINATION OF EXEMPTION FOR CRITICAL ACCESS HOS-
PITALS .—
‘‘(1) I N GENERAL .—The exemption for critical access hos-
pitals under subsection (b)(1)(B) shall have no effect after July31, 2006.
‘‘(2) R
EPORT TO CONGRESS .—Not later than 3 years after
July 31, 2003, the Secretary shall submit a report to Congressdetailing the effects of the exemption of critical access hospitalsfrom the provisions of subsection (b)(1)(B) on—
‘‘(A) the provision of mortgage insurance to hospitals
under this section; and
‘‘(B) the General Insurance Fund established under
section 519.’’.
SEC. 4. STUDY OF BARRIERS TO RECEIPT OF INSURED MORTGAGES
BY FEDERALLY QUALIFIED HEALTH CENTERS.
(a) I NGENERAL .—The Secretary of Housing and Urban Develop-
ment shall conduct a study on the barriers to the receipt of mortgageinsurance by federally qualified health centers (as defined in section1905(l)(2)(B) of the Social Security Act (42 U.S.C. 1396d(l)(2)(B)))under section 1101 of the National Housing Act (12 U.S.C. 1749aaa),or other programs under that Act.
(b) R
EPORT .—Not later than 6 months after the date of enact-
ment of this Act, the Secretary of Housing and Urban Developmentshall submit a report regarding any appropriate legislative andregulatory changes needed to enable federally qualified health cen-ters to access mortgage insurance under section 1101 of the NationalHousing Act (12 U.S.C. 1749aaa), or other programs under thatAct to—
(1) the Committee on Banking, Housing, and Urban Affairs
of the Senate; and
(2) the Committee on Financial Services of the House of
Representatives.
Approved October 3, 2003.Deadline.Deadline.
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Brief
The Hospital Mortgage Insurance Act of 2003 amends section 242 of the National Housing Act to require hospitals to meet certain standards for mortgage insurance. The act establishes means for determining need and feasibility for hospitals, especially in states with no official procedure. Critical access hospitals are exempt from these provisions until July 31, 2006. A study on barriers to receipt of insured mortgages by federally qualified health centers is also mandated. This legislation aims to facilitate hospital financing and assess mortgage insurance options for health centers.
Highlights content goes here...
Purpose
The Hospital Mortgage Insurance Act of 2003 (Public Law 108-91) was enacted on October 3, 2003, to amend section 242 of the National Housing Act regarding mortgage insurance requirements for hospitals. The primary purpose of this act is to provide a framework for determining need and feasibility for hospital construction or modernization through the use of mortgage insurance programs.
Key Provisions
The key provisions of this act include:
- Standards for Determining Need and Feasibility: The Secretary of Housing and Urban Development (HUD) is required to establish standards for determining need and feasibility for hospitals, including the requirement for satisfactory evidence that the hospital will be located in a state or political subdivision with reasonable minimum standards of licensure and methods of operation.
- Exemption for Critical Access Hospitals: Critical access hospitals are exempt from certain requirements under section 242 of the National Housing Act, but this exemption is set to expire on July 31, 2006.
- Study of Barriers to Receipt of Insured Mortgages by Federally Qualified Health Centers: HUD is required to conduct a study on the barriers to receipt of mortgage insurance by federally qualified health centers and submit a report to Congress regarding any necessary legislative or regulatory changes.
Industry Impact
The Hospital Mortgage Insurance Act of 2003 has significant implications for the healthcare industry, particularly in terms of hospital construction and modernization. By providing a framework for determining need and feasibility, this act aims to facilitate access to mortgage insurance programs, which can help hospitals finance their projects. The exemption for critical access hospitals will also impact these facilities, as they will no longer be subject to certain requirements under section 242 of the National Housing Act.
Updates/Amendments
This act amends section 242 of the National Housing Act, making changes to the standards for determining need and feasibility for hospital construction or modernization. The amendments also include provisions related to critical access hospitals and federally qualified health centers.
