SENIORS HOUSING 232 FHA-INSURED FINANCING
Non-recourse, fully assumable financing for construction or substantial rehabilitation of skilled nursing, assisted living, and memory care communities.
Eligible Properties Licensed skilled nursing, assisted living, and memory care communities, including independent living up to 25% of total bed count
Loan Features
• Low, fixed interest rates
• Up to 40-year term, fully amortizing (interest-only during construction period)
• Non-recourse and fully assumable
• Combined construction and permanent loan
Mortgage Loan Amount
The mortgage is limited to the lesser of:
• 75% stabilized LTV assisted living (80% for non-profit borrowers) or 80% LTV for skilled nursing (85% for non-profit borrowers)
• 90% of certifiable transaction costs
• 1.45x underwritten debt service coverage ratio
Prepayment Standard prepayment schedule is 10% in year one, stepping down 1% annually, however, alternative prepayment structures are available subject to market conditions
Escrow
• Working capital escrow of 4% of loan amount, unused portion will be returned to borrower
• Initial operating deficit calculated by HUD and available upon issuance of certificate of occupancy
• Minor movable equipment
• Monthly escrows for real estate taxes, property insurance, and replacement reserves are required
Transaction Costs
• Purchase price of land/buildings or existing debt
• Certified construction costs, bond premium, builder’s profit allowance, and other fees
• Architectural fees for design and supervision
• Appraisal, engineering, and environmental inspection reports
• MIP during construction
• Interest, insurance, and real estate taxes during construction
• Legal, organizational, audit, title & recording, and survey fees
• HUD application fee of 0.30% & HUD inspection fee of 0.50%
• FF&E – major fixed and movable items