Securing Facilities for Mental Health Services Act
Summary
What This Bill Does
The Securing Facilities for Mental Health Services Act amends section 242 of the National Housing Act, the FHA mortgage insurance program for hospitals. Section 2 removes subparagraph (B) from the eligibility provision and redesignates the following subparagraph, applying the change after a nine-month delay. Section 3 requires the HUD Secretary, within two years after enactment, to report to Congress on the results and effectiveness of expanding the hospital mortgage insurance program under those amendments. The policy effect is to open the section 242 mortgage insurance framework to facilities previously excluded by the removed subparagraph, with Congress receiving a follow-up assessment after the expanded eligibility has operated.
Who Benefits and How
Mental health service facilities, hospitals seeking section 242 financing, nonprofit health systems, lenders financing hospital construction or renovation, and communities with shortages of inpatient or facility-based behavioral health care may benefit if the removed exclusion lets more facilities obtain federally insured mortgages. HUD benefits from a reportable implementation period that can show whether the expansion increases access to facilities without undermining program performance.
Who Bears the Burden and How
HUD hospital mortgage insurance staff must update eligibility guidance, review applications under the expanded rule, monitor risk, and report to Congress. Federal taxpayers and FHA insurance funds bear credit risk if newly eligible facilities default. Hospitals and mental health facilities seeking financing must still satisfy section 242 underwriting, documentation, and project requirements. Congress must evaluate the two-year report to decide whether the expansion is effective.
Key Provisions
- Amends National Housing Act section 242 hospital mortgage insurance eligibility.
- Removes a statutory exclusion and redesignates the following eligibility provision.
- Applies the mortgage-insurance eligibility change after a nine-month delay.
- Requires HUD to report to Congress within two years on results and effectiveness.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Expands FHA section 242 hospital mortgage insurance eligibility by removing a statutory exclusion, applies the change after nine months, and requires HUD to report to Congress within two years on the results and effectiveness of the expansion.
Key Policy Areas
Healthcare, Housing, Government
Primary Purpose
Expands FHA section 242 hospital mortgage insurance eligibility by removing a statutory exclusion, applies the change after nine months, and requires HUD to report to Congress within two years on the results and effectiveness of the expansion.
Policy Domains
Substantive provisions
Identified Gains
- Mental health service facilities
- Hospitals seeking FHA section 242 financing
- Nonprofit health systems
- Hospital lenders
- Communities lacking behavioral health facilities
- HUD hospital mortgage insurance staff
Identified Costs
- HUD underwriting staff
- Federal taxpayers
- FHA insurance funds
- Hospitals applying for financing
- Congressional housing committees
Sponsors
Tom Emmer
R-MN | Primary Sponsor
Legislative Progress
In CommitteeMr. Emmer (for himself and Mr. Torres of New York) …
Referred to the House Committee on Financial Services.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Congressional housing committees, HUD hospital mortgage insurance staff
Positive-direction: Congressional housing committees
Negative-direction: HUD hospital mortgage insurance staff
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology