Under Section 242 of the National Housing ACT, the Federal Housing Administration (FHA) provides mortgage insurance for both non-profit or for profit hospitals to facilitate their capital development projects, especially in unserved or underserved communities. Since the program’s inception in 1968, HUD has insured 312 hospitals for over $9.2 billion nationwide.

Section 242 is a credit enhancement tool that allows hospitals to reduce their mortgage interest rate and receive 90% LTV with no limits on loan amount. Section 242 can be used for construction or permanent financing, with taxable or tax-exempt bonds, and the proceeds can also be used to pay off outstanding capital debt.

The unique demands and processes of this program have been made dramatically easier. HUD has reengineered its application review process to make it faster, simpler and more efficient. HUD’s reengineered process, along with PNC ARCS’ knowledge, experience and expertise in the FHA Section 242 hospital program, ensure that the borrower’s application will meet all HUD requirements for a fast, smooth, reliable execution from application, through closing, and beyond.

PNC ARCS is an acknowledged leader in multifamily finance with some of the most seasoned professionals in FHA/HUD mortgage insurance.With the addition of Section 242, PNC ARCS can now offer the complete range of FHA health care programs for Assisted Living Facilities (ALF), Group Practice Facilities, Skilled Nursing Homes, and hospitals.

Beyond the benefits of any specific program, PNC ARCS’ expertise and unwavering commitment to extraordinary customer service are what set us apart from the rest. And with specialists in affordable housing, senior housing, manufactured housing communities, mezzanine/bridge financing, FHA multifamily, and capital markets, we can help meet your most critical financing and timing needs. No one delivers more.