Code of Federal Regulations (Last Updated: May 6, 2024) |
Title 24 - Housing and Urban Development |
Subtitle B - Regulations Relating to Housing and Urban Development |
Chapter II - Office of Assistant Secretary for Housing - Federal Housing Commissioner, Department of Housing and Urban Development |
SubChapter B - Mortgage and Loan Insurance Programs Under National Housing Act and Other Authorities |
Part 242 - Mortgage Insurance for Hospitals |
Subpart A - General Eligibility Requirements |
§ 242.15 - Limitation on refinancing existing indebtedness.
Latest version.
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§ 242.15 Limitation on refinancing existing indebtedness.
(a) Some existing capital debt may be refinanced with the proceeds of a section 242-insured loan; however, the hard costs of construction and equipment must represent at least 20 percent of the total mortgage amount.
(b) In the case of a loan insured under Section 242/223(f), there is no requirement for hard costs. However, if there are hard costs, such costs must total less than 20 percent of the total mortgage amount.
[78 FR 8341, Feb. 5, 2013]