| Eligible Properties: Skilled nursing assisted living, intermediate care and board and care facilities, or any combination thereof which are at least 3 years old from the date of initial occupancy. Moderate rehabilitation is permitted. |
Loan Type:
Up to 35 year, fully amortizing permanent loan |
Maximum Loan:
The lesser of the following criteria:
- 85% of HUD appraised value;
- 1.17 debt service coverage
Refinance Transaction:
- The existing indebtedness plus transaction costs
Purchase Transaction:
- 85% of the cost of acquisition
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Interest Rates:
Fixed rate determined by market rates at the time of rate lock |
Amortization: Up to 35-year, fully amortizing loan
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Personal Recourse: Non-recourse
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Assumability: Assumable, subject to NYCL’s approval
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Subordinate Financing:
Allowable, subject to HUD criteria
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Wage Requirements:
Davis-Bacon prevailing wage requirements do not apply |
Annual Mortgage Insurance Premium:
0.5% of the average principal balance (escrowed on a monthly basis). In addition, 1.0% of the mortgage amount is payable at closing
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Escrows:
Monthly escrows for property insurance, real estate taxes, reserves for replacement, sinking fund (if applicable) and mortgage insurance premiums
An initial deposit to replacement reserve and 100% of repair costs (both as determined by HUD) are escrowed from mortgage proceeds
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Commercial Space:
Commercial area shall not exceed 20% of the total net rentable area of the project and commercial income shall not exceed 20% of effective gross income |
Environmental Issues:
Special rules apply for properties which are located in Flood Hazard Zones as designated by FEMA
Lead-based paint and asbestos must be abated in accordance with HUD requirements
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Application Fee:
A non-refundable fee of 0.3% of the requested mortgage amount is payable to HUD at the time of application, plus estimated underwriting costs for market study, appraisal, architectural/engineering report, cost analysis, environmental assessment and other loan processing costs
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Financing and Placement Fees: Negotiable
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Closing Expenses:
Standard transaction costs, including legal fees, title insurance and survey
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Other HUD Requirements:
Cash escrows or letters of credit are required for the following:
- 50% of repair costs as a completion guarantee
- 2.5% of repair costs as a latent defects guarantee, due at completion of repairs
- Forecasted operating deficits, (maximum of 18 months) to be released upon achievement of breakeven operations for 90 days
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HUD Processing Time:
One stage for HUD Multifamily Accelerated Processing (MAP) procedures:
- Firm Commitment Stage: 60 days for review
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Preliminary Submission Package:
Include the following in your request for a loan quote:
- Property description and location map
- Number of beds with breakdown of proposed rents by payor source
- Current bed roll and year-to-date operating statement
- Operating history Ð prior 3 years, if available
- Current year operating budget
- Existing debt or purchase price
- Sponsor resume
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