Loan Term:
40 years (preceded by interest-only period during construction)
Interest Rate:
Fixed rate, fully amortizing (preceded by interest-only period during construction)
Non-recourse:
Non-recourse
Assumable:
Fully assumable
Prepayment:
10% year one, then declining 1% per year; and customizable
Commercial Space:
No commercial space greater than 10% of gross floor area and 15% of gross income of the property
Borrower:
A single asset SPE
Escrows:
Preconstruction. Escrows required for taxes, interest reserves, insurance, working capital (4% of the loan), and initial operating deficit. Balances will be released to borrower after 6 consecutive months of break-even operations.Post-Construction. Escrows required for taxes, insurance, and MIP and capital needs replacement reserves.
Davis Bacon Wages:
Payment of prevailing wages for contractors and subcontractors
Third Party Reports:
Appraisal, Environmental Report, and Capital Needs Assessment
DSCR/LTV Requirements:
Property Type
Maximum LTV
Maximum LTC
Minimum DSCR
Assisted Living
75%
90%
1.45
Skilled Nursing
80%
90%
1.45
Mortgage Insurance Premium:
Standard: 0.77% at HUD closing and annually thereafter (0.45% annually for certain LIHTC projects).Green: 0.25% at closing and annually thereafter
