FHA 232/223F LEAN Loans Nationally
Assisted Living Facility - Nursing Home Loans

FHA - 232/223(f) - Refinance or Purchase of Skilled Nursing and
Assisted Living Facilities - Senior Housing Finance

ELIGIBLE PROPERTIES: Skilled nursing assisted living, intermediate care and board and care facilities,
or any combination - Moderate rehabilitation is permitted.  LOAN TYPE: Permanent loan. Min. FHA
232/223 F $3,000,000

MAXIMUM LOAN: The lesser of the following criteria:-
1.  80% of HUD appraised value; Assisted Living SEE:  LTV  DSC CHART
2.  1.45 debt service coverage.
Refinance Transaction:
1. The existing indebtedness plus transaction costs.
Purchase Transaction:
1. 80% of the cost of acquisition.- Assisted Living

INTEREST RATES: Fixed rate determined by market rates at the time of rate lock.

AMORTIZATION: Up to 35-year, fully amortizing loan.

PERSONAL RECOURSE: Non-recourse.

ASSUMABILITY: Assumable, subject to approval.

SUBORDINATE FINANCING: Allowable, subject to HUD criteria.

PROFESSIONAL AND GENERAL LIABILITY INSURANCE: Required.

ANNUAL MORTGAGE INSURANCE PREMIUM: 1.0% of the mortgage amount is payable at closing.
Thereafter, the MIP is escrowed monthly based on a rate established by HUD. The rate is fixed at loan
endorsement.

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.

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.

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.

FINANCING AND PLACEMENT FEES: Negotiable.

CLOSING EXPENSES: Standard transaction costs, including legal fees, title insurance and survey.

PROFESSIONAL LIABILITY INSURANCE: Required by HUD for all loans. The minimum requirement is $1
million per occurrence and $3 million aggregate. Further information regarding this requirement is
available upon request.

STATE LICENSURE: All loans must be licensed by the state or other governmental entity who has
oversight responsibilities.

OTHER HUD REQUIREMENTS: Cash escrows or letters of credit are required for the following:
1.        20% of repair costs as a completion guarantee.
2.        2.5% of repair costs as a latent defects guarantee, due at completion of repairs.
3.        Forecasted operating deficits, (maximum of 18 months) to be released upon achievement
of  breakeven operations for 90 days.

HUD PROCESSING TIME:

One stage for HUD Multifamily Accelerated Processing (MAP) procedures:
1.        Firm Commitment Stage: 60 days for review.

PRELIMINARY SUBMISSION PACKAGE:

Include the following in your request for a loan quote:
1.        Property description and location map.
2.        Number of beds with breakdown of proposed rents by payor source.
3.        Current bed roll and year-to-date operating statement.
4.        Operating history – prior 3 years, if available.
5.        Current year operating budget.
6.        Existing debt or purchase price.
7.        Sponsor resume.


Scott Kendall  847-903-7578
kendallrealty@gmail.com
Charles Kendall 773-259-7074 kendallrealtyadv@gmail.com
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KENDALL REALTY ADVISORS