PUBLIC LAW 96-79—OCT. 4, 1979 "(i) non-Federal lenders for their loans to public and nonprofit private entities for medical facilities projects described in paragraph (1), and "(ii) the Federal Financing Bank for its loans to public and nonprofit private entities for such projects, payment of principal and interest on such loans. (B) In the case of a guarantee of any loan to a public or nonprofit private entity under subparagraph (A)(i) which is located in an urban or rural poverty area, the Secretary may pay, to the holder of such loan and for and on behalf of the project for which the loan was made, amounts sufficient to reduce by not more than one half the net effective interest rate otherwise payable on such loan if the Secretary finds that without such assistance the project could not be undertaken. "(b) The principal amount of a loan directly made or guaranteed under subsection (a) for a medical facilities project, when added to any other assistance provided such project under part B, may not exceed 90 per centum of the cost of such project unless the project is located in an area determined by the Secretary to be an urban or rural poverty area, in which case the principal amount, when added to other assistance under part B, may cover up to 100 per centum of such costs.". (2) Section 1622(b)(2)(D) is amended by striking out "minus 3 per centum per annum" and inserting in lieu thereof the following: "minus any interest subsidy made in accordance with section 1601(a)(2)(B) with respect to a loan made for a project located in an urban or rural poverty area". (3) Section 1622(e)(2) is amended (A) by striking out "and" after "1977,", and (B) by inserting before the period a comma and the following: "September 30, 1979, September 30, 1980, September 30, 1981, and September 30, 1982". (c) Section 1625 is amended to read as follows: "PROJECT GRANTS
"SEC. 1625. (a)(1)(A) The Secretary may make grants for construction or modernization projects designed to— "(i) eliminate or prevent in medical facilities imminent safety hazards as defined by Federal, State, or local fire, building, or life safety codes or regulations, or "(ii) avoid noncompliance by medical facilities with State or voluntary licensure or accreditation standards. "(B) A grant under subparagraph (A) may only be made to— "(i) a State or political subdivision of a State, including any city, town, county, borough, hospital district authority, or public or quasi-public corporation, for any medical facility owned or operated by the State or political subdivision; and "(ii) a nonprofit private entity for any medical facility owned or operated by the entity but only if the Secretary determines— "(I) the level of community service provided by the facility and the proportion of its patients who are unable to pay for services rendered in the facility is similar to such level and proportion in a medical facility of a State or political subdivision, and "(II) that without a grant under subparagraph (A) there would be a disruption of the provision of health care to lowincome individuals. "(2) The amount of any grant under paragraph (1) may not exceed 75 per centum of the cost of the project for which the grant is made
93 STAT. 631
Projects in urban or rural areas, loan assistance.
Medical facilities project loan, limitation. Ante, p. 630.
42 USC 300q-2. Post, pp. 632,635. Post, p. 635.
42 USC 300r. Post, pp. 632,635.
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