§ 1715w. — Mortgage insurance for nursing homes, intermediate care facilities, and board and care homes.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1715w]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 1715w. Mortgage insurance for nursing homes, intermediate
care facilities, and board and care homes
(a) Purpose
The purpose of this section is to assist in the provision of
facilities for any of the following purposes or for a combination of
such purposes:
(1) The development of nursing homes for the care and treatment
of convalescents and other persons who are not acutely ill and do
not need hospital care but who require skilled nursing care and
related medical services, including additional facilities for the
nonresident care of elderly individuals and others who are able to
live independently but who require care during the day.
(2) The development of intermediate care facilities and board
and care homes for the care of persons who, while not in need of
nursing home care and treatment, nevertheless are unable to live
fully independently and who are in need of minimum but continuous
care provided by licensed or trained personnel, including additional
facilities for the nonresident care of elderly individuals and
others who are able to live independently but who require care
during the day.
(3) The development of assisted living facilities for the care
of frail elderly persons.
(b) Definitions
For the purposes of this section--
(1) the term ``nursing home'' means a public facility,
proprietary facility or facility of a private nonprofit corporation
or association, licensed or regulated by the State (or, if there is
no State law providing for such licensing and regulation by the
State, by the municipality or other political subdivision in which
the facility is located), for the accommodation of convalescents or
other persons who are not acutely ill and not in need of hospital
care but who require skilled nursing care and related medical
services, in which such nursing care and medical services are
prescribed by, or are performed under the general direction of,
persons licensed to provide such care or services in accordance with
the laws of the State where the facility is located;
(2) the term ``intermediate care facility'' means a proprietary
facility or facility of a private nonprofit corporation or
association licensed or regulated by the State (or, if there is no
State law providing for such licensing and regulation by the State,
by the municipality or other political subdivision in which the
facility is located) for the accommodation of persons who, because
of incapacitating infirmities, require minimum but continuous care
but are not in need of continuous medical or nursing services;
(3) the term a \1\ ``nursing home'' or ``intermediate care
facility'' may include such additional facilities as may be
authorized by the Secretary for the nonresident care of elderly
individuals and others who are able to live independently but who
require care during the day;
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\1\ So in original. The word ``a'' probably should not appear.
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(4) the term ``mortgage'' means a first mortgage on real estate
in fee simple, or on the interest of either the lessor or lessee
thereof (A) under a lease for not less than ninety-nine years which
is renewable, or (B) under a lease having a period of not less than
ten years to run beyond the maturity date of the mortgage. The term
``first mortgage'' means such classes of first liens as are commonly
given to secure advances (including but not limited to advances
during construction) on, or the unpaid purchase price of, real
estate under the laws of the State in which the real estate is
located, together with the credit instrument or instruments, if any,
secured thereby, and any mortgage may be in the form of one or more
trust mortgages or mortgage indentures or deeds of trust, securing
notes, bonds, or other credit instruments, and, by the same
instrument or by a separate instrument, may create a security
interest in initial equipment, whether or not attached to the
realty. The term ``mortgagor'' shall have the meaning set forth in
section 1713(a) of this title;
(5) the term ``board and care home'' means any residential
facility providing room, board, and continuous protective oversight
that is regulated by a State pursuant to the provisions of section
1616(e) of the Social Security Act [42 U.S.C. 1382e(e)], so long as
the home is located in a State that, at the time of an application
is made for insurance under this section, has demonstrated to the
Secretary that it is in compliance with the provisions of such
section 1616(e);
(6) the term ``assisted living facility'' means a public
facility, proprietary facility, or facility of a private nonprofit
corporation that--
(A) is licensed and regulated by the State (or if there is
no State law providing for such licensing and regulation by the
State, by the municipality or other political subdivision in
which the facility is located);
(B) makes available to residents supportive services to
assist the residents in carrying out activities of daily living,
such as bathing, dressing, eating, getting in and out of bed or
chairs, walking, going outdoors, using the toilet, laundry, home
management, preparing meals, shopping for personal items,
obtaining and taking medication, managing money, using the
telephone, or performing light or heavy housework, and which may
make available to residents home health care services, such as
nursing and therapy; and
(C) provides separate dwelling units for residents, each of
which may contain a full kitchen and bathroom, and which
includes common rooms and other facilities appropriate for the
provision of supportive services to the residents of the
facility; and
(7) the term ``frail elderly person'' has the meaning given the
term in section 8011(k) of title 42.
(c) Authorization
The Secretary is authorized to insure any mortgage (including
advances on such mortgage during construction) in accordance with the
provisions of this section upon such terms and conditions as he may
prescribe and to make commitments for insurance of such mortgage prior
to the date of its execution or disbursement thereon.
(d) Terms and conditions; limitation on maximum amount of mortgage;
amortization; interest; certification from State agency
In order to carry out the purposes of this section, the Secretary is
authorized to insure any mortgage which covers a new or rehabilitated
nursing home,,\2\ assisted living facility, or intermediate care
facility, including a new addition to an existing nursing home, assisted
living facility, or intermediate care facility and regardless of whether
the existing home or facility is being rehabilitated, or any combination
of nursing home, assisted living facility, and intermediate care
facility or a board and care home, including equipment to be used in its
operation, subject to the following conditions:
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\2\ So in original.
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(1) The mortgage shall be executed by a mortgagor approved by
the Secretary. The Secretary may in his discretion require any such
mortgagor to be regulated or restricted as to charges and methods of
financing, and, in addition thereto, if the mortgagor is a corporate
entity, as to capital structure and rate of return. As an aid to the
regulation or restriction of any mortgagor with respect to any of
the foregoing matters, the Secretary may make such contracts with
and acquire for not to exceed $100 such stock or interest in such
mortgagor as he may deem necessary. Any stock or interest so
purchased shall be paid for out of the General Insurance Fund, and
shall be redeemed by the mortgagor at par upon the termination of
all obligations of the Secretary under the insurance.
(2) The mortgage shall involve a principal obligation in an
amount not to exceed 90 per centum of the estimated value of the
property or project, or 95 percent of the estimated value of the
property or project in the case of a mortgagor that is a private
nonprofit corporation or association (under the meaning given such
term for purposes of section 1715l(d)(3) of this title), including--
(A) equipment to be used in the operation of the home or
facility or combined home and facility when the proposed
improvements are completed and the equipment is installed; or
(B) a solar energy system (as defined in subparagraph (3) of
the last paragraph of section 1703(a) of this title) or
residential energy conservation measures (as defined in section
8211(11)(A) through (G) and (I) of title 42) \3\ in cases where
the Secretary determines that such measures are in addition to
those required under the minimum property standards and will be
cost-effective over the life of the measure.
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\3\ See References in Text note below.
(3) The mortgage shall--
(A) provide for complete amortization by periodic payments
within such terms as the Secretary shall prescribe; and
(B) bear interest at such rate as may be agreed upon by the
mortgagor and the mortgagee.
The Secretary shall not promulgate regulations or establish terms or
conditions that interfere with the ability of the mortgagor and
mortgagee to determine the interest rate; and \4\
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\4\ So in original. The ``; and'' probably should be a period.
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(4)(A) With respect to nursing homes and intermediate care
facilities and combined nursing home and intermediate care
facilities, the Secretary shall not insure any mortgage under this
section unless he has received, from the State agency designated in
accordance with section 604(a)(1) or section 1521 \3\ of the Public
Health Service Act [42 U.S.C. 291d (a)(1), 300m] for the State in
which is located the nursing home or intermediate care facility or
combined nursing home and intermediate care facility covered by the
mortgage, a certification that (i) there is a need for such home or
facility or combined home and facility, and (ii) there are in force
in such State or in the municipality or other political subdivision
of the State in which the proposed home or facility or combined home
and facility is to be located reasonable minimum standards of
licensure and methods of operation governing it. No such mortgage
shall be insured under this section unless the Secretary has
received such assurance as he may deem satisfactory from the State
agency that such standards will be applied and enforced with respect
to any home or facility or combined home and facility located in the
State for which mortgage insurance is provided under this section.
If no such State agency exists, or if the State agency exists but is
not empowered to provide a certification that there is a need for
the home or facility or combined home and facility as required in
clause (i) of the first sentence, the Secretary shall not insure any
mortgage under this section unless (i) the State in which the home
or facility or combined home and facility is located has conducted
or commissioned and paid for the preparation of an independent study
of market need and feasibility that (I) is prepared in accordance
with the principles established by the American Institute of
Certified Public Accountants; (II) assesses, on a marketwide basis,
the impact of the proposed home or facility or combined home and
facility on, and its relationship to, other health care facilities
and services, the percentage of excess beds, demographic
projections, alternative health care delivery systems, and the
reimbursement structure of the home, facility, or combined home and
facility; (III) is addressed to and is acceptable to the Secretary
in form and substance; and (IV) in the event the State does not
prepare the study, is prepared by a financial consultant who is
selected by the State or the applicant for mortgage insurance and is
approved by the Secretary; and (ii) the State complies with the
other provisions of this subparagraph that would otherwise be
required to be met by a State agency designated in accordance with
section 604(a)(1) or section 1521 \3\ of the Public Health Service
Act. The proposed mortgagor may reimburse the State for the cost of
the independent feasibility study required in the preceding
sentence. In the case of a small intermediate care facility for the
mentally retarded or developmentally disabled, or a board and care
home housing less than 10 individuals, the State program agency or
agencies responsible for licensing, certifying, financing, or
monitoring the facility or home may, in lieu of the requirements of
clause (i) of the third sentence, provide the Secretary with written
support identifying the need for the facility or home.
(B) With respect to board and care homes, the Secretary shall
not insure any mortgage under this section unless he has received
from the appropriate State licensing agency a statement verifying
that the State in which the home is or is to be located is in
compliance with the provisions of section 1616(e) of the Social
Security Act [42 U.S.C. 1382e(e)].
(C) With respect to assisted living facilities or any such
facility combined with any other home or facility, the Secretary
shall not insure any mortgage under this section unless--
(i) the Secretary determines that the level of financing
acquired by the mortgagor and any other resources available for
the facility will be sufficient to ensure that the facility
contains dwelling units and facilities for the provision of
supportive services in accordance with subsection (b)(6) of this
section;
(ii) the mortgagor provides assurances satisfactory to the
Secretary that each dwelling unit in the facility will not be
occupied by more than 1 person without the consent of all such
occupants; and
(iii) the appropriate State licensing agency for the State,
municipality, or other political subdivision in which the
facility is or is to be located provides such assurances as the
Secretary considers necessary that the facility will comply with
any applicable standards and requirements for such facilities.
(e) Release of part of mortgaged property or project from lien
The Secretary may consent to the release of a part or parts of the
mortgaged property or project from the lien of any mortgage insured
under this section upon such terms and conditions as he may prescribe.
(f) Applicability of other laws
The provisions of subsections (d), (e), (g), (h), (i), (j), (k),
(l), and (n) of section 1713 of this title shall apply to mortgages
insured under this section and all references therein to section 1713 of
this title shall refer to this section.
(g) Regulations covering intermediate care facilities; consultations
The Secretary shall prescribe such regulations as may be necessary
to carry out the provisions of this section relating to intermediate
care facilities, after consulting with the Secretary of Health and Human
Services with respect to any health or medical aspects of the program
which may be involved in such regulations.
(h) Consultations concerning need for and availability of intermediate
care facilities
The Secretary shall also consult with the Secretary of Health and
Human Services as to the need for and the availability of intermediate
care facilities in any area for which an intermediate care facility is
proposed under this section.
(i) Fire safety equipment for nursing homes, assisted living facilities,
intermediate care facilities, or board and care homes
(1) The Secretary is authorized upon such terms and conditions as he
may prescribe to make commitments to insure and to insure loans made by
financial institutions or other approved mortgagees to nursing homes,
assisted living facilities, and intermediate care facilities or to board
and care homes to provide for the purchase and installation of fire
safety equipment necessary for compliance with the 1967 edition of the
Life Safety Code of the National Fire Protection Association (or any
subsequent edition specified by the Secretary of Health and Human
Services) or other such codes or requirements approved by the Secretary
of Health and Human Services as conditions of participation for
providers of services under title XVIII and title XIX of the Social
Security Act [42 U.S.C. 1395 et seq., 1396 et seq.] or as mandated by a
State under the provisions of section 1616(e) of such Act [42 U.S.C.
1383e(e)].
(2) To be eligible for insurance under this subsection a loan
shall--
(A) not exceed the Secretary's estimate of the reasonable cost
of the equipment fully installed;
(B) bear interest at such rate as may be agreed upon by the
mortgagor and the mortgagee;
(C) have a maturity satisfactory to the Secretary;
(D) be made by a financial institution or other mortgagee
approved by the Secretary as eligible for insurance under section
1703 of this title or a mortgagee approved under section 1709(b)(1)
of this title;
(E) comply with other such terms, conditions, and restrictions
as the Secretary may prescribe; and
(F) in the case of board and care homes, be made with respect to
such a home located in a State with respect to which the Secretary
has received from the appropriate State licensing agency a statement
verifying that the State in which the home is or is to be located is
in compliance with the provisions of section 1616(e) of the Social
Security Act [42 U.S.C. 1382e(e)]:
(3) The provisions of paragraphs (5), (6), (7), (9), and (10) of
section 1715k(h) of this title shall be applicable to loans insured
under this subsection, except that all references to ``home improvement
loans'' shall be construed to refer to loans under this subsection.
(4) The provisions of subsections (c), (d), and (h) of section 1703
of this title shall apply to loans insured under this subsection, and
for the purpose of this subsection references in such subsections to
``this section'' or ``this title'' shall be construed to refer to this
subsection.
(j) Schedules and deadlines for processing and approval of applications
The Secretary shall establish schedules and deadlines for the
processing and approval (or provision of notice of disapproval) of
applications for mortgage insurance under this section. The Secretary
shall submit a report to the Congress annually describing such schedules
and deadlines and the extent of compliance by the Department with the
schedules and deadlines during the year.
(June 27, 1934, ch. 847, title II, Sec. 232, as added Pub. L. 86-372,
title I, Sec. 115, Sept. 23, 1959, 73 Stat. 663; amended Pub. L. 87-70,
title VI, Sec. 610, June 30, 1961, 75 Stat. 180; Pub. L. 88-560, title
I, Sec. 117, Sept. 2, 1964, 78 Stat. 779; Pub. L. 89-117, title XI,
Sec. 1108(m), Aug. 10, 1965, 79 Stat. 505; Pub. L. 90-19, Sec. 1(a)(3),
May 25, 1967, 81 Stat. 17; Pub. L. 90-448, title III, Sec. 314, Aug. 1,
1968, 82 Stat. 511; Pub. L. 91-152, title I, Sec. 111, Dec. 24, 1969, 83
Stat. 382; Pub. L. 93-204, Dec. 28, 1973, 87 Stat. 883; Pub. L. 93-383,
title III, Sec. 304(g), Aug. 22, 1974, 88 Stat. 678; Pub. L. 95-128,
title III, Sec. 308(a), Oct. 12, 1977, 91 Stat. 1135; Pub. L. 95-557,
title III, Sec. 312, Oct. 31, 1978, 92 Stat. 2099; Pub. L. 96-399, title
III, Sec. 310(f), Oct. 8, 1980, 94 Stat. 1643; Pub. L. 98-181, title IV,
Secs. 404(b)(10), 437, Nov. 30, 1983, 97 Stat. 1209, 1222, 1223; Pub. L.
98-479, title I, Sec. 104(a)(1), Oct. 17, 1984, 98 Stat. 2224; Pub. L.
100-242, title IV, Secs. 410(a), (b), 429(e), Feb. 5, 1988, 101 Stat.
1904, 1918; Pub. L. 102-550, title V, Sec. 511(a)-(e), Oct. 28, 1992,
106 Stat. 3784-3786; Pub. L. 105-65, title II, Sec. 216, Oct. 27, 1997,
111 Stat. 1367; Pub. L. 105-276, title II, Sec. 214(a), Oct. 21, 1998,
112 Stat. 2486.)
References in Text
The General Insurance Fund, referred to in subsec. (d)(1), was
established by section 1735c of this title.
Section 8211 of title 42, referred to in subsec. (d)(2)(B), was
omitted from the Code pursuant to section 8229 of Title 42, The Public
Health and Welfare, which terminated authority under that section on
June 30, 1989.
Section 1521 of the Public Health Service Act, referred to in
subsec. (d)(4)(A), is section 1521 of act July 1, 1944, which was
classified to section 300m of Title 42, The Public Health and Welfare,
prior to repeal, effective Jan. 1, 1987, by Pub. L. 99-660, title VII,
Sec. 701(a), Nov. 14, 1986, 100 Stat. 3799.
The Social Security Act, referred to in subsec. (i)(1), is act Aug.
13, 1935, ch. 531, 49 Stat. 620, as amended. Titles XVIII and XIX of the
Act are classified generally to subchapters XVIII (Sec. 1395 et seq.)
and XIX (Sec. 1396 et seq.) of chapter 7 of Title 42, The Public Health
and Welfare. For complete classification of this Act to the Code, see
section 1305 of Title 42 and Tables.
Amendments
1998--Subsec. (b)(4)(B). Pub. L. 105-276 made technical correction
to directory language of Pub. L. 105-65. See 1997 Amendment note below.
1997--Subsec. (b)(4)(B). Pub. L. 105-65, as amended by Pub. L. 105-
276, substituted ``ten years to run beyond the maturity date of the
mortgage'' for ``fifty years to run from the date the mortgage was
executed''.
1992--Subsec. (a). Pub. L. 102-550, Sec. 511(a)(1), substituted
``any'' for ``either'' in introductory provisions.
Subsec. (a)(3). Pub. L. 102-550, Sec. 511(a)(2), added par. (3).
Subsec. (b)(6), (7). Pub. L. 102-550, Sec. 511(b), added pars. (6)
and (7).
Subsec. (d). Pub. L. 102-550, Sec. 511(c)(1), in introductory
provisions, inserted ``, assisted living facility,'' after
``rehabilitated nursing home,'', substituted ``any combination of
nursing home, assisted living facility, and intermediate care facility''
for ``combined nursing home and intermediate care facility'', and
inserted ``, including a new addition to an existing nursing home,
assisted living facility, or intermediate care facility and regardless
of whether the existing home or facility is being rehabilitated,'' after
first reference to ``intermediate care facility''.
Subsec. (d)(2). Pub. L. 102-550, Sec. 511(c)(2), inserted ``or 95
percent of the estimated value of the property or project in the case of
a mortgagor that is a private nonprofit corporation or association
(under the meaning given such term for purposes of section 1715l(d)(3)
of this title),'' before ``including'' in introductory provisions.
Subsec. (d)(3). Pub. L. 102-550, Sec. 511(c)(3), inserted concluding
provisions.
Subsec. (d)(4)(C). Pub. L. 102-550, Sec. 511(c)(4), added subpar.
(C).
Subsec. (i)(1). Pub. L. 102-550, Sec. 511(d), inserted ``, assisted
living facilities,'' after ``nursing homes''.
Subsec. (j). Pub. L. 102-550, Sec. 511(e), added subsec. (j).
1988--Subsec. (b)(1). Pub. L. 100-242, Sec. 410(a), inserted
``public facility,'' before ``proprietary''.
Subsec. (b)(3) to (5). Pub. L. 100-242, Sec. 429(e)(1), indented as
par. (3) former run-in cl. (3) defining ``nursing home'' and
``intermediate care facility'', inserted ``the term'', and struck out
``and'' after semicolon at end, redesignated as par. (4) former par. (3)
defining ``mortgage'', and redesignated as par. (5) former par. (4).
Subsec. (d)(4)(A). Pub. L. 100-242, Sec. 410(b), inserted ``If no
such State agency exists, or if the State agency exists but is not
empowered to provide a certification that there is a need for the home
or facility or combined home and facility as required in clause (i) of
the first sentence, the Secretary shall not insure any mortgage under
this section unless (i) the State in which the home or facility or
combined home and facility is located has conducted or commissioned and
paid for the preparation of an independent study of market need and
feasibility that (I) is prepared in accordance with the principles
established by the American Institute of Certified Public Accountants;
(II) assesses, on a marketwide basis, the impact of the proposed home or
facility or combined home and facility on, and its relationship to,
other health care facilities and services, the percentage of excess
beds, demographic projections, alternative health care delivery systems,
and the reimbursement structure of the home, facility, or combined home
and facility; (III) is addressed to and is acceptable to the Secretary
in form and substance; and (IV) in the event the State does not prepare
the study, is prepared by a financial consultant who is selected by the
State or the applicant for mortgage insurance and is approved by the
Secretary; and (ii) the State complies with the other provisions of this
subparagraph that would otherwise be required to be met by a State
agency designated in accordance with section 291d(a)(1) or section 300m
of title 42. The proposed mortgagor may reimburse the State for the cost
of the independent feasibility study required in the preceding sentence.
In the case of a small intermediate care facility for the mentally
retarded or developmentally disabled, or a board and care home housing
less than 10 individuals, the State program agency or agencies
responsible for licensing, certifying, financing, or monitoring the
facility or home may, in lieu of the requirements of clause (i) of the
third sentence, provide the Secretary with written support identifying
the need for the facility or home.''
Subsec. (i)(2)(B). Pub. L. 100-242, Sec. 429(e)(2), amended subpar.
(B) generally. Prior to amendment, subpar. (B) read as follows: ``bear
interest at not to exceed a rate determined by the Secretary to be
necessary to meet the loan market''.
1984--Pub. L. 98-479 inserted reference to board and care homes in
section catchline.
1983--Subsec. (a)(2). Pub. L. 98-181, Sec. 437(a), inserted ``and
board and care homes'' after ``intermediate care facilities''.
Subsec. (b)(4). Pub. L. 98-181, Sec. 437(b), added par. (4).
Subsec. (d). Pub. L. 98-181, Sec. 437(c)(1), in provisions preceding
par. (1) inserted ``or a board and care home'' after ``and intermediate
care facility,''.
Subsec. (d)(3)(B). Pub. L. 98-181, Sec. 404(b)(10), substituted
provision that the interest rate be at such a rate as agreed upon by the
mortgagor and the mortgagee for provision that the interest rate,
exclusive of premium charges for insurance, not exceed 5 per centum per
annum on the amount of the principal obligation outstanding at any time,
or not exceed such per centum per annum not in excess of 6 per centum as
the Secretary finds necessary to meet the mortgage market.
Subsec. (d)(4). Pub. L. 98-181, Sec. 437(c)(2), designated existing
provision as subpar. (A), substituted ``With respect to nursing homes
and intermediate care facilities and combined nursing home and
intermediate care facilities, the'' for ``The'' and ``(i)'' and ``(ii)''
for ``(A)'' and ``(B)'', respectively, and added subpar. (B).
Subsecs. (g), (h). Pub. L. 98-181, Sec. 437(d), (e), substituted
``Health and Human Services'' for ``Health, Education, and Welfare''.
Subsec. (i)(1). Pub. L. 98-181, Sec. 437(f)(1), inserted ``or to
board and care homes'' after ``intermediate care facilities'', ``(or any
subsequent edition specified by the Secretary of Health and Human
Services)'' after ``Association'', and ``or as mandated by a State under
provisions of section 1616(e) of such Act'' after ``Social Security
Act'', and substituted ``Health and Human Services'' for ``Health,
Education, and Welfare''.
Subsec. (i)(2)(F). Pub. L. 98-181, Sec. 437(f)(2), added subpar.
(F).
1980--Subsec. (d)(2). Pub. L. 96-399 revised existing provisions
into introductory paragraph and subpar. (A) and added subpar. (B).
1978--Subsec. (a). Pub. L. 95-557, Sec. 312(a), inserted ``,
including additional facilities for the nonresident care of elderly
individuals and others who are able to live independently but who
require care during the day'' after pars. (1) and (2).
Subsec. (b)(2). Pub. L. 95-557, Sec. 312(b), inserted ``(3) a
`nursing home' or `intermediate care facility' may include such
additional facilities as may be authorized by the Secretary for the
nonresident care of elderly individuals and others who are able to live
independently but who require care during the day''.
1977--Subsec. (d)(4). Pub. L. 95-128 inserted reference to section
300m of title 42.
1974--Subsec. (d)(2). Pub. L. 93-383 struck out ``not to exceed
$12,500,000, and'' after ``an amount''.
1973--Subsec. (i). Pub. L. 93-204 added subsec. (i).
1969--Subsec. (a). Pub. L. 91-152, Sec. 111(1), added to stated
purpose of this section of developing nursing homes, the development of
intermediate care facilities or the development of such facilities in
combination with nursing home facilities.
Subsec. (b). Pub. L. 91-152, Sec. 111(2), (3), struck out ``and''
after ``is located;'' in par. (1), redesignated par. (2) as (3), and
added par. (2).
Subsec. (d). Pub. L. 91-152, Sec. 111(4), inserted provision
authorizing the Secretary to insure any mortgage which covers an
intermediate care facility or combined nursing home and intermediate
care facility.
Subsec. (d)(2). Pub. L. 91-152, Sec. 111(5), substituted ``operation
of the home or facility or combined home or facility'' for ``operation
of the nursing home''.
Subsec. (d)(4). Pub. L. 91-152, Sec. 111(6), substituted ``section
291d(a)(1) of title 42'' for ``section 291b(a)(1) of title 42'', and
made provisions applicable to the insurance of mortgages covering
intermediate care facilities or combined nursing home and intermediate
care facilities.
Subsecs. (g), (h). Pub. L. 91-152, Sec. 111(7), added subsecs. (g)
and (h).
1968--Subsec. (b)(2). Pub. L. 90-448, Sec. 314(1), redefined term
``mortgage'' to mean a first mortgage on real estate in fee simple, or
on the interest of either the lessor or lessee thereof under a lease for
not less than ninety-nine years which is renewable, or under a lease
having a period of not less than fifty years to run from the date the
mortgage was executed, and inserted definition of ``first mortgage''.
Subsec. (d). Pub. L. 90-448, Sec. 314(2), (3), authorized the
Secretary to insure a mortgage which includes equipment to be used in
the operation of a nursing home, and permitted the value of the
equipment to be included in the calculation of the 90 per centum of the
estimated value.
1967--Pub. L. 90-19 substituted ``Secretary'' for ``Commissioner''
wherever appearing.
1965--Subsec. (d)(1). Pub. L. 89-117, Sec. 1108(m)(1), substituted
``General Insurance Fund'' for ``section 207 Housing Insurance Fund''.
Subsec. (f). Pub. L. 89-117, Sec. 1108(m)(2), struck out references
to subsecs. (f), (m) and (p) of section 1713 of this title.
1964--Subsec. (b)(1). Pub. L. 88-560 inserted ``or facility of a
private nonprofit corporation or association'' after ``proprietary
facility''.
1961--Subsec. (d)(2). Pub. L. 87-70 substituted ``90 per centum''
for ``75 per centum''.
Effective Date of 1998 Amendment
Pub. L. 105-276, title II, Sec. 214(b), Oct. 21, 1998, 112 Stat.
2486, provided that: ``The amendment made by subsection (a) [amending
this section] shall be construed to have taken effect on October 27,
1997.''
Regulations
Section 410(c) of Pub. L. 100-242 provided that: ``The Secretary of
Housing and Urban Development shall issue such regulations as may be
necessary to carry out the amendments made by this section [amending
this section] by not later than the expiration of the 90-day period
following the date of the enactment of this Act [Feb. 5, 1988].''
Termination of Reporting Requirements
For termination, effective May 15, 2000, of reporting provisions in
subsec. (j) of this section, see section 3003 of Pub. L. 104-66, as
amended, set out as a note under section 1113 of Title 31, Money and
Finance, and page 105 of House Document No. 103-7.
Delegation of Processing of Mortgage Insurance
Secretary of Housing and Urban Development to implement system of
mortgage insurance for mortgages insured under this section that
delegates processing functions to selected approved mortgagees, with
Secretary to retain authority to approve rents, expenses, property
appraisals, and mortgage amounts and to execute firm commitments, see
section 328 of Pub. L. 101-625, set out as a note under section 1713 of
this title.
Section Referred to in Other Sections
This section is referred to in sections 1701q-2, 1715c, 1715n,
1735f-19 of this title; title 42 sections 1437f, 3013, 4822.
