Hospital Construction:

Financial Information on HUD's Section 242 Hospital Mortgage Insurance Program

HRD-89-14: Published: Dec 22, 1988. Publicly Released: Dec 22, 1988.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a legislative requirement, GAO reviewed the financial status of the Department of Housing and Urban Development's (HUD) Section 242 Hospital Mortgage Insurance Program.

GAO found that: (1) HUD administered the program from its General Insurance Fund, which had incurred a cumulative operating deficit of over $2.6 billion as of December 31, 1987; (2) although HUD estimated that the deficit would increase by $236.5 million, Section 242 hospital mortgages would not contribute to the increase, since they would produce an operating surplus of $7.7 million; (3) the program could incur a deficit if one or more hospitals with large mortgages defaulted; (4) as of August 1988, 160 Section 242 mortgages were in force, with original principal totalling over $4.7 billion and unpaid principal totalling about $4.5 billion; and (5) 6 of the 160 mortgages were in default, totalling about $67 million in potential claims against HUD by lenders, but HUD expected to reinstate 4 of those mortgages.

Aug 13, 2020

Jul 29, 2020

Jul 27, 2020

Jun 26, 2020

Apr 30, 2020

Mar 17, 2020

Mar 3, 2020

Nov 20, 2019

Sep 25, 2019

Looking for more? Browse all our products here