HUD loosens requirements for nursing home loans
The U.S. Department of Housing and Urban Development published its final Notice governing the Section 232 loan program, specific for nursing homes.
Under the final Notice, nursing homes have to have professional liability insurance that is rated by A.M. Best as at least a "B++" carrier, more lenient than the "A-" previous requirement, according to the American Health Care Association.
Insurance providers that are authorized by state legislatures, and regulated and financially controlled by the state, will be eligible under the new Notice.
The deductible level was increased to $100,000 in cases with fewer than 50 projects, and the $1 million to $3 million deductible requirement can be waived or modified if it affects project feasibility, the notice said.
HUD originally sent out Notice H04-01 in January. A coalition of provider associations fought for changes, saying the original notice would preclude all but 25% of the nation's 16,000 nursing homes from qualifying for the loans.