Larry,
Most oils, and ATF is an "oil" will attack "water" hose material, this mnay not become evident for some time in a low pressure application, but the hose material will degrade and cause system problems.
With respect to the Power steering system, many of these operate at higher pressure than the cooling system, so there could also be a pressure element here.
There are many hydraulic hose suppliers if the OEM part is unavailable.
Paul