Bulletin: NY000476

Date:
July 07, 2011
To:
All New York State Office Counsel, Managers and Agents
RE:
Hill-Burton Funds

When the federal government makes a grant, loan or guarantee for a hospital, medical facility, nursing home, health research facility, teaching facility for health related fields, facility for individuals with intellectual disabilities, medical or nursing school, federal law allows the United States government, in certain instances to recover such funds from the owner and subsequent purchasers of the facility.

The conditions for the recovery may relate to:

  • The failure to complete facility improvements;

  • The period of recovery (which will be ten years or twenty years after completion of the improvements);

  • The failure of the facilities to be used for the purposes set forth in the particular law; and,

  • The failure of the owner or transferee of the land to continue to qualify under the particular law.

Company Policy: When you issue an owner's or loan policy on a hospital, medical facility, or health research facility, you should determine whether the land is a "Hill-Burton Obligated Facility."

You can confirm this by calling the Department of Health and Human Services at 1-800-638-0742 or by reviewing the list of facilities on the internet at http://www.hrsa.gov/gethealthcare/affordable/hillburton/facilities.html/.

If the site is listed, add the following exception to your commitment and policy:

"Restrictions on the uses, occupancy and ownership of the Land as established under 42 U.S.C. § 291 et seq. or any similar laws, and rights of the United States pursuant thereto to recover its contribution to construction costs on violation."  

If the site is a nursing home, add the following exception to your commitment and policy: 

"Rights of residents of the facility on the Land pursuant to the terms of unrecorded residency agreements, if any." 

If you have any questions please contact Stewart Title Insurance Company Agency Legal Service at 212-922-0050.

 For online viewing of this and other bulletins, log onto: www.stewartnewyork.com 

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
SLS2011011 Hill-Burton Funds
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None