New Construction or Sub-Rehab of Nursing Homes, Intermediate Care Facilities, Board and Care Home and Assisted Living Facilities
New construction or substantial rehabilitation of Nursing Homes, Intermediate Care Facilities, Board and Care Home and Assisted Living Facilities.
Single asset and single purpose entity, either for-profit or non-profit.
New Construction: The lesser of:
a) Recommended % of Loan to Value;
b) Recommended % of Replacement Cost; or
c) Recommended Debt Service Coverage Ratio.
Substantial Rehabilitation: The lesser of: a) Recommended % of Loan to Value;
b) Recommended % of Rehabilitation Cost plus the lesser of: existing indebtedness or recommended % of as-is value for properties owned; or
c) Recommended % of Rehabilitation Cost plus the lesser of: recommended % of purchase price or recommended % of as-is value for properties to be purchased; or
d) Recommended Debt Service Ratio.
Cost of offsite improvements, FF&E, marketing, construction contingency and operating deficit reserve excluded from loan amount.
Based on current economic and fiscal environment, HUD has recommended the following parameters:
New Construction - For Profit Assisted Living: 75% LTV, 1.45 DSCR.
New Construction - Non-Profit Assisted Living: 80% LTV, 1.45 DSCR
Sub-Rehab - For Profit Assisted Living: 80% LTV, 1.45 DSCR.
Sub-Rehab - Non-Profit Assisted Living: 85% LTV, 1.45 DSCR
New Construction & Substantial Rehabilitation
- For Profit Skilled Nursing, Board and Care and Independent Living: 80% LTV, 1.45 DSCR.
- Non-Profit Skilled Nursing, Board and Care and Independent Living: 85% LTV, 1.45 DSCR.
*Other than the above constraints, there are no minimum or maximum loan sizes.
Interest only during the construction period, plus 40 years fully amortizing.
Fixed rate determined by market conditions at the time of rate lock.
0.77% each year during construction and 0.77% annually (0.45% for affordable) (0.25% for Green Energy) Subject to change by HUD.
Non-recourse during both construction & permanent phases of financing
Fully assumable with HUD approval.
Negotiable. Best rates typically have 1-2 year lockout with declining prepayment penalty for remainder of first 10 years.
Market study, Appraisal, Architectural and Costs Review and Environmental.
Escrows for debt service, mortgage insurance premium, taxes, insurance, replacement reserves, working capital, operating deficit, and minor movables are required.
Federal prevailing wage & reporting requirements.
Payment & performance bond or cash deposit/letter of credit.
$3 per $1,000 of the requested mortgage.
$2 per $1,000 of the requested mortgage.
$5 per 1,000 of the requested mortgage for new construction; and $5 per 1,000 of improvements cost for substantial rehabilitation.
Typically 0.5% of mortgage amount, refunded at closing.
Minimum $1,000,000 / $3,000,000 coverage for operators / managers.
New construction or substantial rehabilitation of Nursing Homes, Intermediate Care Facilities, Board and Care Home and Assisted Living Facilities.
Single asset and single purpose entity, either for-profit or non-profit.
New Construction: The lesser of:
a) Recommended % of Loan to Value;
b) Recommended % of Replacement Cost; or
c) Recommended Debt Service Coverage Ratio.
Substantial Rehabilitation: The lesser of: a) Recommended % of Loan to Value;
b) Recommended % of Rehabilitation Cost plus the lesser of: existing indebtedness or recommended % of as-is value for properties owned; or
c) Recommended % of Rehabilitation Cost plus the lesser of: recommended % of purchase price or recommended % of as-is value for properties to be purchased; or
d) Recommended Debt Service Ratio.
Cost of offsite improvements, FF&E, marketing, construction contingency and operating deficit reserve excluded from loan amount.
Based on current economic and fiscal environment, HUD has recommended the following parameters:
New Construction - For Profit Assisted Living: 75% LTV, 1.45 DSCR.
New Construction - Non-Profit Assisted Living: 80% LTV, 1.45 DSCR
Sub-Rehab - For Profit Assisted Living: 80% LTV, 1.45 DSCR.
Sub-Rehab - Non-Profit Assisted Living: 85% LTV, 1.45 DSCR
New Construction & Substantial Rehabilitation
- For Profit Skilled Nursing, Board and Care and Independent Living: 80% LTV, 1.45 DSCR.
- Non-Profit Skilled Nursing, Board and Care and Independent Living: 85% LTV, 1.45 DSCR.
*Other than the above constraints, there are no minimum or maximum loan sizes.
Interest only during the construction period, plus 40 years fully amortizing.
Fixed rate determined by market conditions at the time of rate lock.
0.77% each year during construction and 0.77% annually (0.45% for affordable) (0.25% for Green Energy) Subject to change by HUD.
Non-recourse during both construction & permanent phases of financing
Fully assumable with HUD approval.
Negotiable. Best rates typically have 1-2 year lockout with declining prepayment penalty for remainder of first 10 years.
Market study, Appraisal, Architectural and Costs Review and Environmental.
Escrows for debt service, mortgage insurance premium, taxes, insurance, replacement reserves, working capital, operating deficit, and minor movables are required.
Federal prevailing wage & reporting requirements.
Payment & performance bond or cash deposit/letter of credit.
$3 per $1,000 of the requested mortgage.
$2 per $1,000 of the requested mortgage.
$5 per 1,000 of the requested mortgage for new construction; and $5 per 1,000 of improvements cost for substantial rehabilitation.
Typically 0.5% of mortgage amount, refunded at closing.
Minimum $1,000,000 / $3,000,000 coverage for operators / managers.
