title  of  the  Housing  Act.  Such  refinancing  results  in  prepayment  of  the  existing  insured mortgage. The new, refinanced mortgage loan is limited to the original principal amount of the existing mortgage loan and the unexpired term of the existing mortgage loan plus 12 years. Section 223(d) (Operating Loss Loans). Section 223(d) of the Housing Act provides for FHA insurance of separate loans that cover (1) operating losses during the first 2 years after completion or (2) up to 80% of the unreimbursed cash contributions by the project owner during any period of up to two years within the first 10 years after date of completion of the project. The project must be secured by an existing HUD-insured first mortgage loan. Section 223(f) (Purchase or Refinancing of Existing Projects). Section 223(f) of the Housing  Act  provides  for  federal  insurance  of  mortgage  loans  originated  by  FHA-approved lenders  in  connection  with  the  purchase  or  refinancing  of  existing  multifamily  housing complexes, hospitals and nursing homes that do not require substantial rehabilitation. The principal objective of the Section 223(f) program is to permit the refinancing of mortgage loans to provide for a lower debt service or the purchase of existing properties in order to preserve an adequate supply of affordable rental housing. Such projects may have been financed originally with conventional or FHA-insured mortgage loans. Section 232 (Mortgage Insurance for Nursing Homes, Immediate Care Facilities and Board and  Care  Homes). Section  232  of  the  Housing  Act  provides  for  FHA  insurance  of  private construction mortgage loans to finance new or rehabilitated nursing homes, intermediate care facilities, board and care homes, assisted living for the frail or elderly or allowable combinations thereof,  including  equipment  to  be  used  in  their  operation.  Section  232  also  provides  for supplemental loans to finance the purchase and installation of fire safety equipment in these facilities. Section 241 (Supplemental Loans for Multifamily Projects). Section 241 of the Housing Act provides for FHA insurance to finance property improvements, energy-conserving improve- ments or additions to any FHA-insured multifamily loan. The overall purpose of the Section 241 loan program is to provide a project with a means to remain competitive, to extend its economic life  and  to  finance  the  replacement  of  obsolete  equipment  without  the  refinancing  of  the existing mortgage. Section 538 Guarantee Program The Section 538 Guaranteed Rural Rental Housing program ("Section 538") is under the United  States  Department  of  Agriculture  Rural  Development  ("Rural  Development").  The authorizing statute is Title V of the Housing Act. Rural Development operates a broad range of programs that were formerly administered by the Rural Housing Service and the Farmers Home Administration  to  support  affordable  housing  and  community  development  in  rural  areas. Mortgage loans are provided by Rural Development-approved multifamily lenders, including state and local housing agencies. The Mortgage Loan guaranteed under the program described below will have the maturity and amortization features as Rural Development may approve. Tenant eligibility for Section 538-guaranteed projects is restricted to persons with income not in excess of 115% of the area median income. The following is a summary of Section 538 under which one of the Mortgage Loans is guaranteed. Section  538. Section  538  was  established  pursuant  to  Title  V  of  the  Housing  Act. Section 538 is designed to increase the supply of affordable rural rental housing, through the use  of  loan  guarantees  that  encourage  partnerships  between  Rural  Development,  private lenders and public agencies. S-11