Eligible Properties: Assisted Living Facilities, Intermediate Care Facilities, Board and Care and Nursing Homes.

Borrower: A single asset and single purpose entity, either for-profit or non-profit.

Highlights:

• 35-year fixed term or up to 75% of building’s economic useful life
• Non-Recourse loan
• Assumable
• Rate Locked for life of Loan

Maximum Loan is the lesser of:

1. Percentage of Value 80% * (Cashout subject to different rules)
2. Debt Service Coverage 1.45x (using a maximum 35 year term/ amortization)
3. 100% transaction costs (refinance) and 85% transaction costs (purchase)

Escrows for taxes, insurance & mortgage insurance premium are required.

Replacement Reserves:

Initial and monthly deposits required based on long term physical needs

Secondary Financing: Available

Professional Liability Insurance: Minimum $1,000,000 / $3,000,000 coverage for operators and managers

Commercial Space: Permitted up to 20%

HUD Exam Fee: $3 per $1,000 of loan amount

HUD Inspection Fee: 1% of estimated cost of repairs or $30 per unit/bed

Rate Lock Deposit: Typically 0.50% of mortgage amount, refunded at closing

Mortgage Insurance Premium

Firm Application Submitted – will include:

• Final Appraisal
• Property Capital Needs Assessment
• Phase 1 Environmental Assessment
• Financials and/or credit information on sponsor and management company
• Three years of complete financials for the project and borrowing entity
• Past due accounts payable and outstanding liabilities
• Management Documents
• Evidence of site control/last arm’s length transaction
• Legal Documents (organizational docs, title)
• Rent Rolls