Permanent Financing / Acquisition, Refinancing for existing:

• Assisted Living / Board & Care Homes

• Skilled Nursing / Intermediate Care Facilities

Single asset borrower may be comprised of:

• For-Profit Sponsor

• Nonprofit Sponsor

• Public Entity Sponsor (Nursing homes only)

The facility must be licensed or regulated by the State, municipality or other political subdivision in which the facility is located, and have been completed or substantially rehabilitated for at least 3 years:

• Projects requiring substantial rehabilitation are not eligible.

Commercial space is permitted, limited to:

• 20% of total net rentable area of the project, and

• 20% of effective gross income of the project.

Purchase Transaction – the lesser of:

• 85% (90% for nonprofits) of value as repaired including major movable equipment,

• 85% (90% for nonprofits) of acquisition cost, including transaction costs, capitalization of replacement reserve and repair costs,

• Loan supportable by 85% (90% for nonprofits) of net earnings attributable to realty and equipment (excluding proprietary earnings).

Refinance Transaction – the lesser of:

• 85% (90% for nonprofits) of value as repaired including major movable equipment,

• Cost to refinance existing debt, including transaction costs, capitalization of replacement reserve and repair costs,

• Loan supportable by 85% (90% for nonprofits) of net earnings attributable to realty and equipment (excluding proprietary earnings).

• Loan Term – up to 35 years.

• Fully amortizing loan, no balloon payment.

• Non-recourse permanent loan.

• Loan is fully assumable by new owner.

• Rate is fixed for entire loan term prior to loan closing.

• Program may be used to credit enhance tax exempt bonds.

• Secondary financing, including grants and tax credits, is permitted in conjunction with the FHA-insured loan to cover certified project costs in excess of 100% of value or replacement cost if provided by a Federal, State or local governmental authority or instrumentality; otherwise if provided by a private source, up to 92.5% of value.

• Davis-Bacon prevailing wage requirements do not apply.

• Leased facilities (operating lease) to qualified operators are permitted.

• In underwriting net earnings, management fees are excluded from expenses; however, a proprietary income amount (varying by level of care) is deducted.

• No equity take-out is permitted.

• Non-critical repairs may be deferred but must be completed within 12 months of loan closing.

Please provide the following information for a preliminary loan quote:

• Brief description of property including year built, number of units/beds, unit mix and square footages, and site acreage.

• Last three years, and year-to-date income and expense statements and balance sheets.

• Current census, including identification of payor sources and their corresponding reimbursement rates.

• Any available market studies, appraisals or environmental reports.

• Copy of most recent mortgage statement, with escrow balances, for property owned, or copy of purchase contract for property to be acquired.

• List of and estimated costs of desired repairs or equipment to be financed.

• Copy of license for facility and/or operator.

• Names of owner, principals, management agent, operator, etc.; resumes if available.