Mr. MUSTIN. Yes, sir. Senator SPARKMAN. As I say, you have pointed out one very important segment that comes within that category. Your point is that these are really homes for persons. Mr. MUSTIN. They are, sir. Senator SPARKMAN. As differentiated from hospitals or institutions as such? Mr. MUSTIN. These provide homes and care also, Senator. They provide medical care at a much more economical rate than could be done in a hospital. At the same time they provide a skilled and expert care which is neither available in the home nor is the family trained for it. Senator SPARKMAN. They are primarily homes for these people who are not able to take care of themselves? Mr. MUSTIN. That is right. They come there to stay usually for the remainder of their lives. Senator SPARKMAN. It is not a matter of coming there for a few days, or a week, or a month? Mr. MUSTIN. No. Senator SPARKMAN. But maybe for years. Mr. MUSTIN. That is right. Senator SPARKMAN. You speak at times of loans and at other times you speak of the FHA program. You realize that the FHA program is not one of loans, but of insurance. Mr. MUSTIN. Yes, sir. Senator SPARKMAN. Do you mean, or is it your thought, that it ought to be under the FHA? Mr. MUSTIN. Yes, sir. We think so, although we are not Senator SPARKMAN. And it would be a matter of insuring mortgages? Mr. MUSTIN. Yes, sir. Senator SPARKMAN. And you think that 75 percent insurance would be the proper dividing point? Mr. MUSTIN. Yes, sir. We think 75 percent for 20 years would be quite adequate at the going rate of interest. You see, Senator, these loans are not available through usual channels. I tried for 10 years to build a nursing home by going through the regular channels of building and loan companies, and insurance companies, and all of those types of institutions. I tried everyone in and around Memphis. I tried everywhere I could; even my own bank with which I had done business for many years. Senator SPARKMAN. Thank you very much, Mr. Mustin. I have been rather impressed with your presentation, sir. Mr. MUSTIN. Thank you. Senator SPARK MAN. Thank you, Mr. Bateman. Mr. BATEMAN. Thank you, sir. (The letters referred to by Mr. Mustin follow :) ALABAMA NURSING HOMES ASSOCIATION, May 9, 1958. Mr. FRANK C. BATEMAN, Executive Director, American Nursing Home Association, Washington, D. C. DEAR MR. BATEMAN: As president of the Alabama Nursing Homes Association, I am happy to have the opportunity to add our plea to that of the American Nursing Home Association for much needed assistance from the Federal Govern ment in the form of available funds for building and expansion purposes of privately owned nursing and convalescent homes. At the present time it is not practical in Alabama to attempt expansion of existing facilities or building of new ones by securing loans through established lending agencies. This is true because such agencies will lend a maximum of 60 percent of the total amount required and only on a 10-year repayment basis. As this is not an especially lucrative profession, it is in most cases impossible for nursing homes to maintain an efficient institution while making large loan payments over a 10-year period. We are most anxious to continually expand and improve our nursing homes in Alabama, but until some means is found through which this can be done on a sound financial basis the quality nor the quantity is likely to show any gains. The Alabama Nursing Homes Association is grateful for your efforts in our behalf and we stand ready to assist you in any way possible. Very sincerely yours, CHARLES E. DUNN, President, Alabama Nursing Homes Association. LITTLE ROCK, ARK., May 13, 1958. FRANK C. BATEMAN, 1346 Connecticut Avenue NW., Washington, D. C. DEAR FRANK: In Arkansas reasonable financing for nursing home is virtually nonexistent; only 10 percent of the need has been met. BILL BEAUMONT, President, Arkansas Nursing Homes Association. ARIZONA ASSOCIATION OF NURSING HOMES, INC., Mr. FRANK C. BATEMAN, American Nursing Home Association, Washington, D. C. DEAR MR. BATEMAN: The plight of the nursing home administrators here in Arizona as far as ways and means of obtaining essential loans for construction, expansion, and/or renovation of new and modern, as well as existing nursing homes, is critical. It is almost impossible to obtain loans from a local source and when we are fortunate enough in that respect to obtain very small loans the interest rate is very high and the short terms of the loan prove a hardship on us. This in turn affects the patients we are responsible for as our general overhead must have a bearing on our overall patient cost. We would very much appreciate relief in the form of long-term loans with reasonable interest rates if you could be instrumental in arranging this. Sincerely, IONE A. DOCKSTADER, Administrator, Arizona Association of Nursing Homes, Inc. THE HILLCREST, Mr. FRANK C. BATEMAN, Tucson, Ariz., May 10, 1958. American Nursing Home Association, Washington, D. C. DEAR MR. BATEMAN: As the immediate past president of the Arizona Association of Nursing Homes, thereby enjoying the friendship of most all nursing administrators within our State, I feel their needs, desires, and future plans are somewhat known to me. To them, as well as myself, trying to obtain loans for new construction, modernization, and/or remodeling, is a task most discouraging. Success is almost nonexistent either through the local lending channels or otherwise. Financing the new and modern recent addition to Hillcest Sanatorium (established 1921) was not easy, in fact it took 5 months, even though years of experience, good records, credit rating, etc., were readily available. With cordial good wishes, I am Yours very sincerely, CHARLES H. SCHMID, Business Manager. Mr. FRANK C. BATEMAN, AMERICAN NURSING HOME ASSOCIATION, DEAR MR. BATEMAN: In regard to loan conditions in the State of California for nursing homes, sanitariums, rest homes, homes for the aged, etc., I would like to share with you my experience on trying to secure a loan in recent months. Seven local banks turned us down without interview on the basis that we were a single-purpose business, and the rules of their bank prohibited loans of this type. They would have considered it, however, if I had given additional mortgages on other real property which I own, which is not being used for nursinghome operations. We also went to several different savings and loan associations in this area and were unable to secure even a 50 percent loan on our total estimated costthis in view of the fact that we owned the vacant real estate. I personally feel that it is very urgent for us here in the State of California to receive the type of program under FHA as outlined by our able representatives Mr. George Mustin and Frank C. Bateman. I have talked at length with my Congressman from this district, Mr. B. F. Sisk, as long ago as 1956 regarding our inability to receive loans in California. I am sure he would be most happy to furnish further information if needed. Sincerely, CLARENCE REDING, President, California State Nursing Home Association, Fourth Vice President, American Nursing Home Association. Mr. FRANK C. BATEMAN, COLORADO NURSING HOME ASSOCIATION, Executive Director, Washington, D. C. Denver, Colo., May 9, 1958. DEAR Mr. BATEMAN: We in the State of Colorado have given careful consideration to the financing of nursing-home construction and have found that it is difficult if not impossible to receive any assistance of any sizeable amounts for the development and construction of nursing-home facilities. We most urgently request that you represent our State association before legislative committees on this matter and endeavor to secure, through FHA assistance for the private nursing-home operators to meet this tremendous social need. Sincerely, SAMUEL JANZEN, President. THE CONNECTICUT CHRONIC CONVALESCENT HOSPITAL ASSOCIATION, INC., New Haven, Conn., May 9, 1958. Mr. FRANK C. BATEMAN, American Nursing Home Association, Washington, D. C. DEAR MR. BATEMAN: Please be advised that the nursing homes in Connecticut for many years have had trouble securing loans and moneys through normal channels. The attitude of the loaning institution has been that the nature of the business being classified a specialty has restricted them from loaning money on the business. Most all the nursing homes in Connecticut had to secure their moneys from private sources at high rates of interest. For this reason the expansion of better facilities in nursing homes has been restricted. Very truly yours, THEODORE E. HAWKINS, President. Mr. FRANK BATEMAN, American Nursing Home Association: WEST PALM BEACH, FLA., May 13, 1958. Florida Nursing Home Association legislative committee would like to go on record in support of a Government-insured loan of the FHA type for proprietary and nonprofit nursing homes. W. I. WELAND, Legislative Chairman. Mr. FRANK BANTEMAN, FLORIDA NURSING HOME ASSOCIATION, Miami, Fla. Executive Secretary, American Nursing Home Association, Washington, D. C. DEAR MR. BATEMAN: The Florida Nursing Home Association would like to go on record in support of a Government-insured loan of the FHA type for proprietary and nonprofit nursing homes, and homes for the aged. Local lending agencies are reluctant to make loans for either building or improving facilities which are built for a specific purpose. The problem of the aged is becoming an ever-increasing problem, both as to homes for the aged, and nursing homes, therefore it is necessary to have more efficient licensed homes, and to allow expansion and renovation of existing homes in order that they may have the proper facilities required by our licensing agencies. Respectfully yours, HILDEGARD A. JOHNSON, R. N., President, Florida Nursing Home Association. BLAKELY NURSING HOME, DEAR MR. BATEMAN: This letter is to inform you of the availability of loans in the State of Idaho. Several nursing-home operators have tried to obtain loans for new construction, renovation, and expansion and have been unable to make satisfactory arrangements for borrowing money. I have personally tried all banking facilities in my area, saving and loan associations, and insurance companies and found not one willing to loan money for nursing-home purposes. Idaho needs some means of obtaining loans. There are several good operators desiring to build when money is available. We in Idaho urge all possible means be used to make available the proper type of financing for proprietary nursing home operators. Yours very truly, Mr. FRANK C. BATEMAN, Dupont Circle Office Building: Mr. and Mrs. S. F. BLAKELY. Nursing home administrators in Illinois experience extreme difficulty in obtaining suitable long-term low-interest financing from private institutions. Many nursing home administrators would engage in remodeling or new construction if financing was made available. Private lending institutions demand high rates of interest, short terms, and high percentage of downpayment thereby discouraging investment of new capital in nursing homes. DEAR MR. BATEMAN: I am happy, indeed, that the association finally has an opportunity to place our problem before Congress. With all the improvements we nursing home administrators are being required to make by the State licensing authorities, our situation is becoming almost desperate. Our association membership here in Indiana has always been eager to provide better facilities for our patients but of course, the limited financial resources available to us has hampered us severely. I refer to our inability to obtain conventional mortgages of sufficient amount repayable over a long period of time. If the Congress of the United States could see fit to make available to us insured long-term loans, I sincerely believe that such would go a long way toward solving the problems of care of the aged and infirm in this country. Yours very truly, MARJORIE PEARSEY, President, Indiana Association of Licensed Nursing Homes. KANSAS ASSOCIATION OF LICENSED NURSING HOMES, INC., FRANK C. BATEMAN, Executive Director of ANHA, Washington, D. C. DEAR MR. BATEMAN: Kansas sends 100 percent support to your testimony that the Federal Housing Administration Act should be modified to provide loans for the construction of new, modern, and efficient nursing and convalescent homes as well as for the expansion and renovation of existing acceptable and licensed nursing homes. In the past year, I have received many inquiries if there were sources of money available for new construction or renovation of nursing homes. These same faithful private nursing home administrators feel rather discouraged to learn that the Government is loaning money to county and nonprofit homes which pay no taxes but yet the proprietary or taxpaying administrators are not recognized. As president of the Kansas Association of Licensed Nursing Homes, I take the privilege of speaking for the 387 proprietary nursing homes and caring for 5,229 aged Kansas persons, sincerely hope that we will receive loan recognition by the Federal Housing Administration Act. Sincerely submitted by, CHARLOTTE MCATEE, R. N., President, Kansas, Association Licensed Nursing Homes, Inc. Mr. FRANK C. BATEMAN. HILLTOP REST HOME, Bowling Green, Ky., May 8, 1958. DEAR SIRS In regard to the financing program of nursing homes in Kentucky: It is impossible to obtain funds through regular channels to build nursing homes in the State of Kentucky. Respectfully, Mrs. Avo HEROD, President of Kentucky Nursing Home Association. MASSACHUSETTS FEDERATION OF NURSING HOMES, INC., Mr. FRANK C. BATEMAN, Executive Director, ANHA, Washington, D. C. DEAR MR. BATEMAN: So many of our Massachusetts Federation of Nursing Homes' members have written and called me concerning their common problem of raising money for expansion of their facilities that I feel compelled to write to you for whatever help you may be able to offer. From each of the several inquiries that I have received comes the complaint that banks and other lending agencies are unwilling to advance money on what they term a single-purpose unit. Most of our members find they are able to borrow small amounts for a short term, but are totally frustrated when it comes to larger amounts for longer terms. It is my understanding that the American Nursing Home Association is seeking Federal agency help regarding this problem. May I assure you that the |