WASHINGTON -- A delay of at least several months is expected before the Department of Housing and Urban Development implements a law allowing nursing homes with uninsured mortgages to refinance with federal insurance, a HUD spokesman said Friday.

The delay could jeopardize the ability of issuers to refinance at favorable rates hundreds of millions of dollars in tax-exempt small-issue industrial development bonds and 501(c)(3) bonds that were issued in the early 1980s and are backed by repayment of the loans, housing market participants said.

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