Halfway through fiscal year 2011, demand for Federal Housing Administration backed Section 232 Residential Care Facilities loans (Skilled Nursing, Assisted Living and Board and Care Facilities) continues to increase.
During testimony before the Senate Appropriations Subcommittee on Transportation, HUD, and Related Agencies, Shaun Donovan, Secretary of the Department of Housing and Urban Development said it has issued 241 insurance commitments in fiscal year 2011 for the program that serves the senior housing market.
“Through LEAN processing methods and high productivity from FHA staff members, this industry-generated volume is being addressed as responsibly as possible given staffing and capacity constraints,” said Donovan.
The number of commitments is on track to surpass fiscal year 2010, when FHA considered 347 applications and issued commitments for 318 facilities.
During the previous fiscal year, FHA also provided commitments to seventeen hospital facilities totaling $1.4 billion.
“HUD estimates [the funding] will result in 15,465 new direct jobs that will be created during construction, with $3.9 billion of overall economic benefit,” said Donovan. “Following construction, FY10 projects will generate estimated annual new economic activity of $1.4 billion and 8,464 new jobs.”