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Healthcare Mortgage Insurance Program Handbook (4232.1)
Section 232 of the National Housing Act
Office of Residential Care Facilities

Handbook 4232.1 Complete Version - Rev 1 - Effective January 19, 2017
Transmittal - June 26, 2017 PDF
Transmittal - January 12, 2017 PDF
Cover Page PDF
Table of Contents
Section I - Handbook Introduction
Chapter 1 - Introduction
Chapter 2 - Lender Relations, Approvals and Monitoring Requirements
    Appendix 2.1 Resources
Section II - Production
Chapter 1 - Introduction and Application Processing
Chapter 2 - Eligible Section 232 Mortgage Insurance Programs
    Appendix 2.1 Calculating the Initial Operating Deficit Escrow
    Appendix 2.2 Resources
Chapter 3 - Loan Sizing
    Appendix 3.1 Resources
Chapter 4 - Architectural Analysis and Cost Processing
    Appendix 4.1 HUD Labor Relations Protocol Section 232 and 241(a)
    Appendix 4.2 Resources
Chapter 5 - Appraisals and Market Studies
Chapter 6 - Participant Credit and Financial Review
    Appendix 6.1 Resources
Chapter 7 - Environmental Review
    Appendix 7.1 Resources PDF
Chapter 8 - Operator and Management Agent Analysis
    Appendix 8.1 Resources
Chapter 9 - Closings
    Appendix 9.1 Resources
Chapter 10 - Construction Period
    Appendix 10.1 Procedures for Requesting Approval for Commencement of Construction Prior to Initial Closing for Section 241(a))
    Appendix 10.2 Instructions for Approval of Initial/Interim Advances
    Appendix 10.3 General Contractor’s Monthly Requisition Procedures
    Appendix 10.4 Specimen Letter – Request for Early Partial Release of Contractor’s Holdback
    Appendix 10.5 Suggested Signature Page Format for the Electronic HUD Master Set of Plans and Specifications
    Appendix 10.6 Resources
Chapter 11 - Cost Certification
    Appendix 11.1 Windfall Calculation Example
    Appendix 11.2 Windfall Calculation Explanation
    Appendix 11.3 Resources
Chapter 12 - LIHTC and other Tax Credit Program Guidance
    Appendix 12.1 Resources
Chapter 13 - Master Lease
    Appendix 13.1 Pledge of Cash Flow Model
    Appendix 13.2 Master Landlord Structure
    Appendix 13.3 Alternative to Multiple Lender Master Lease
Chapter 14 - Insurance Requirements
    Appendix 14.1 Professional Liability Insurance
Chapter 15 - Accounts Receivable Financing
    Appendix 15.1 Resources
Chapter 16 - Cash Flow Structures, Deposit Account Control Agreements (DACAs), and Deposit Account Instruction Service Agreements (DAISAs)
    Appendix 16.1 Sample Cash Flow Chart
    Appendix 16.2 Sample Cash Flow Chart
    Appendix 16.3 Sample Cash Flow Chart
    Appendix 16.4 Sample Cash Flow Chart
    Appendix 16.5 Resources
Chapter 17 - Portfolios
Chapter 18 - Insurance Upon Completion
    Appendix 18.1 Resources
Section III - Asset Management
Chapter 1 - Asset Management Overview
Chapter 2 - Controlling Documents
    Appendix 2.1 Resources
Chapter 3 - General Loan Oversight
    Appendix 3.1 Resources
Chapter 4 - Financial Operations
    Appendix 4.1 Resources
Chapter 5 - Section 232 Risk Mitigation Branch and Asset Management Tools
    Appendix 5.1 Resources
Chapter 6 - Departmental Enforcement Center
    Appendix 6.1 Resources
Chapter 7 - Change in Ownership: Transfer of Physical Assets
    Appendix 7.1 Resources
Chapter 8 - Operators and Management Agents
    Appendix 8.1 Resources
Chapter 9 - New or Modification of Master Lease Structure
    Appendix 9.1 Resources
Chapter 10 - Accounts Receivable Financing and Cash Flow Structures
    Appendix 10.1 Resources
Chapter 11 - Presidentially Declared Disaster Guidance