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New Reporting Requirements for HUD-Insured Mortgages Under Section 232

January 30, 2013

Patrick B. McAssey, CPA
Sullivan & Company, a division of BlumShapiro

There are new reporting requirements that are set to take effect in 2013 for nursing home operators that have a HUD-insured mortgage under Section 232.

A final rule published in the Federal Register rules and regulations on September 7, 2012 (Vol. 77. No. 174) revised Section 232 Healthcare Facility Insurance Program regulations to reflect current policy and practices, improve accountability and strengthen risk management in the Section 232 program.

This final rule will require nursing home operators to submit internally prepared financial statements to HUD and the lender on a quarterly and fiscal year-to-date basis within 30 calendar days of the date of the end of each fiscal quarter, except for the final fiscal quarter, that must be submitted within 60 calendar days.

HUD is expected to issue a notice to operators by the spring of 2013. The notice will explain what statements are required, how the statements are to be submitted and when the quarterly filings will start. We recommend that you start to evaluate your current reporting capabilities and policies to prepare for the new reporting requirements.

Once the 2013 spring notice is issued we will apprise you of any additional program changes.

BlumShapiro is here to help you with any questions and the implementation of these new program changes. Please contact the lead partner in BlumShapiro’s Healthcare Services Group, Jonathan Fink at


Advisors | Auditors | Consultants | CPAs - Blum Shapiro is one of the premier public accounting firms in the northeast and a Top 100 CPA Firm in the U.S. Our professionals serve businesses, individuals and organizations in Boston (MA), Hartford (CT), Cranston (RI), Shelton (CT) ,Quincy (MA) and Newton (MA) with audit, tax and business consulting services. Our firm has developed practice areas in automotive, construction, education, government, healthcare, hospitality, manufacturing, nonprofit organizations and professional service firms. New Haven CT, Fairfield CT, Norwalk CT, Waterbury CT.