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Eligible Projects: |
Nursing homes, intermediate care, assisted-living, or existing board and care facilities (collectively referred to as "residential care facilities").
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Eligible Programs: |
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New construction or substantial rehabilitation of an existing residential care facility.
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Purchase or refinance of existing conventionally financed residential care facilities (pursuant to the Section 223f Program). |
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Loan Term: |
40-years or 75% of the remaining useful life of the property.
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Loan to Value Ratios: |
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New construction or substantial rehabilitation transactions: 90% for profit Mortgagors & 95% for non-profit Mortgagors
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Purchase or refinance transactions: 85% for profit Mortgagors & 90% for non-profit Mortgagors |
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Assurance of Completion: |
Corporate surety bonds for payment & performance in the amount of 100% of the construction or rehabilitation cost. Alternatively, a cash deposit or letter of credit in the amount of 15% of construction or rehabilitation cost is acceptable (25% for elevator buildings of 4 stories or more).
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Medicaid/Medicare Rule: |
Medicaid rates will be used to establish the income estimate for 67% of nursing home/intermediate care beds. Medicare rates will be used for 3% of the beds. This does not apply to board and care or assisted living facilities.
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