42 USC 300q – Loan and loan guarantee authority
(a) Covered projects: duration; payment of principal and interest on loans for covered projects: duration; payments for reduction of interest rate
(1) The Secretary, during the period ending September 30, 1982, may, in accordance with this part, make loans from the fund established under section 300q-2(d) of this title to any public or nonprofit private entity for projects for—
(A) the discontinuance of unneeded hospital services or facilities,1
(B) the conversion of unneeded hospital services and facilities to needed health services and medical facilities, including outpatient medical facilities and facilities for long-term care;
(C) the renovation and modernization of medical facilities, particularly projects for the prevention or elimination of safety hazards, projects to avoid noncompliance with licensure or accreditation standards, or projects to replace obsolete facilities;
(D) the construction of new outpatient medical facilities; and
(E) the construction of new inpatient medical facilities in areas which have experienced (as determined by the Secretary) recent rapid population growth.
Terms Used In 42 USC 300q
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Secretary: means the Secretary of Health and Human Services. See 42 USC 201
(2)(A) The Secretary, during the period ending September 30, 1982, may, in accordance with this part, guarantee to—
(i) non-Federal lenders for their loans to public and nonprofit private entities for medical facilities projects described in paragraph (1), and
(ii) the Federal Financing Bank for its loans to public and nonprofit private entities for such projects,
payment of principal and interest on such loans.
(B) In the case of a guarantee of any loan to a public or nonprofit private entity under subparagraph (A)(i) which is located in an urban or rural poverty area, the Secretary may pay, to the holder of such loan and for and on behalf of the project for which the loan was made, amounts sufficient to reduce by not more than one half the net effective interest rate otherwise payable on such loan if the Secretary finds that without such assistance the project could not be undertaken.
(b) Amount of loans for medical facilities projects and such projects in urban or rural poverty areas
The principal amount of a loan directly made or guaranteed under subsection (a) for a medical facilities project, when added to any other assistance provided such project under part B, may not exceed 90 per centum of the cost of such project unless the project is located in an area determined by the Secretary to be an urban or rural poverty area, in which case the principal amount, when added to other assistance under part B, may cover up to 100 per centum of such costs.
(c) Limitation on cumulative total of principal of outstanding loans
The cumulative total of the principal of the loans outstanding at any time with respect to which guarantees have been issued, or which have been directly made, may not exceed such limitations as may be specified in appropriation Acts.
(d) Administrative assistance of Department of Housing and Urban Development
The Secretary, with the consent of the Secretary of Housing and Urban Development, shall obtain from the Department of Housing and Urban Development such assistance with respect to the administration of this part as will promote efficiency and economy thereof.