Page:United States Statutes at Large Volume 101 Part 3.djvu/607

 PUBLIC LAW 100-242—FEB. 5, 1988

101 STAT. 1905

tion of the 90-day period following the date of the enactment of this Act. SEC. 411. REQUIREMENT OF STATE APPROVAL FOR MORTGAGE INSURANCE FOR HOSPITALS.

(a) IN GENERAL.—Section 242(d)(4) of the National Housing Act is 12 USC 1715Z-7. amended by inserting at the end the following new sentences: "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 hospital as set forth in clause (A) of the first sentence, the Secretary shall not insure any mortgage under this section unless (A) the State in which the hospital 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 hospital 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 hospital; (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 selected by the State and approved by the Secretary; and (B) the State complies with the other provisions of this paragraph that would otnerwise be required to be met by a State agency designated in accordance with section 604(a)(1) or section 1521 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.". (b) REGULATIONS.—The Secretary of Housing and Urban Develop- 12 USC 1715Z-7 ment shall issue such regulations as may be necessary to carry out note. the amendment made by this section by not later than the expiration of the 90-day period following the date of the enactment of this Act. SEC. 412. MORTGAGE INSURANCE FOR PUBLIC HOSPITALS. (a) ELIMINATION OF ADDITIONAL COLLATERAL REQUIREMENTS FOR

PUBLIC HOSPITALS.—Section 242(a) of the National Housing Act is amended by adding at the end the following: "Such assistance shall be provided regardless of the amount of public financial or other support a hospital may receive, and the Secretary shall neither require additional security or collateral to guarantee such support, nor impose more stringent eligibility or other requirements on publicly owned or supported hospitals.". (b) CREDIT FOR EXISTING EQUIPMENT AND IMPROVEMENTS.—Section

242(d)(2) of the National Housing Act is amended by striking the matter preceding subparagraph (A) and inserting the following: "(2) The mortgage shall involve a principal obligation in the amount requested by the mortgagor if such amount does not exceed 90 percent of the estimated replacement cost of the property or project including—". (c) CONTINUED USE OF LETTERS OF CREDIT.—Section 242(d) of the National Housing Act is amended by adding at the end the following new paragraph: "(6) To the extent that a private nonprofit or public facility mortgagor is required by the Secretary to provide cash equity in excess of the amount of the mortgage to complete the project, the

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