New Reporting Requirements for HUD-Insured Mortgages Under Section 232January 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 email@example.com.