FHA-Insured Hospital Conversion and Reinvestment Act of 2001

FHA-Insured Hospital Conversion and Reinvestment Act of 2001 - Amends the National Housing Act to authorize the Secretary of Housing and Urban Development to make grants to eligible FHA-insured hospitals for use only for purposes that the Secretary determines will reduce the risk of default and loss on mortgages for those hospitals. Includes among such purposes: (1) carrying out activities to convert the excess capacity of an eligible FHA-insured hospital to facilities that provide health care and supportive housing for elderly persons and families, including assisted living facilities, nursing homes, and supportive housing for the elderly; and (2) assisting in paying debt service for an eligible FHA-insured hospital, including service on debt insured under this Act.

Authorizes such hospital conversions, and requires the Secretary to provide for uninterrupted continuation of a converted hospital's mortgage insurance coverage for the duration of the original term of the mortgage insurance contract.

Makes available to fund conversion grants any negative credit subsidies (surplus amounts) attributable to FHA programs for full insurance for health care facilities.