Program Description: Combination construction and permanent loan program for new construction or substantial rehabilitation of affordable and market rate apartment communities owned by Non-Profit entities.

Loan Amounts: No Maximum/Minimum

Loan Terms/Amortization: Construction Loan – Up to 2 years
Permanent Loan – Up to 40 years (fully amortizing)

Prepayment: Negotiable but typically locked for 2 years, then 8%, 7%, 6%, etc.
No penalty after 10 years.

Recourse: Non-recourse for both construction and permanent loans

Borrower: All properties must be owned by a single-asset, Non-Profit entity

Debt Service Coverage: 1.05

Loan-to-Development Cost Ratio: 100%

Subordinate Financing: With FHA’s approval; soft subordinate financing paid out of available net project cash flow

Assumability: Assumable with permission of lender and HUD

Income & Expenses: Based on current market comparables (no trending)

Reserves: Taxes, insurance, replacement reserve and mortgage insurance premium escrows are required.

Financing Methods: Available for both conventional financing and as credit enhancement for bond transactions.

Processing:
M.A.P. – Lender performs all underwriting and prepares/reviews applications for program requirements; FHA reviews for compliance and accuracy. FHA conducts pre-application meeting for project acceptability

T.A.P. – Lender underwrites, prepares and submits application; FHA processes application through permanent loan closing, including preparation of all third party reports.

Interest Rate Set: Interest Rates are based on market and are set upon acceptance of Commitment and fixed for entire construction and permanent terms.

Conversion to Permanent Loan: Only requirements are completion and cost certification. Not subject to re-underwriting.

FHA/HUD Application Fee: $3/$1,000 of mortgage amount

Lender Origination Fee: Negotiable based on loan size

Program Description: Combination construction and permanent loan program for new construction and substantial rehabilitation of affordable and market rate apartment communities.

Loan Amounts: No Maximum/Minimum

Loan Terms/Amortization: Construction Loan – Up to 2 years
Permanent Loan – 40 years (fully amortizing)

Prepayment: Negotiable, but typically locked for 2 years, then 8%, 7%, 6%, etc.
No penalty after 10 years.

Recourse: Non-recourse, for both construction and permanent loans

Borrower: All properties must be owned by a single-asset entity

Debt Service Coverage: 1.12

Loan-to-Development Cost Ratio: 90%

Subordinate Financing: With FHA’s approval; soft subordinate financing paid out of available net project cash flow

Assumability: Assumable with permission of Lender and HUD.

Income & Expenses: Based on current market comparables (no trending)

Reserves: Taxes, insurance, replacement reserve and mortgage insurance premium escrows are required

Financing Methods: Available for both conventional financing and as credit enhancement for bond transactions

Processing:
M.A.P. – Lender performs all underwriting and prepares/reviews applications for program requirements; FHA reviews for compliance and accuracy

T.A.P. – Lender underwrites, prepares and submits application; FHA processes
application through permanent loan closing, including preparation of all third party reports

FHA/Application Fee: $3/$1,000 of mortgage amount

Lender Origination Fees: Negotiable based on loan size

Interest Rate: Interest Rates are based on market and are set upon acceptance of Commitment and fixed for entire construction and permanent terms.

Conversion to Permanent Loan: Only requirements are completion and cost certification. Not subject to re-underwriting

Program Description: Fixed rate permanent refinancing for existing apartment communities with FHA insured mortgages. This is a streamline refinance program that does not allow equity take-out. Streamline benefits include no property inspection, no appraisal, no environmental, modified mortgage credit analysis, reduced application fee, and no FHA inspection fee.

Loan Amount: No Maximum/Minimum

Loan Term/Amortization: The remaining term of the existing HUD insured mortgage. An additional 12 years can be added if warranted and approved by HUD.

Prepayment: Negotiable, but typically locked for 2 years, then 8%, 7%, 6%, etc.
No penalty after 10 years.

Recourse: Non-recourse

Borrower: All properties must be owned by a single-asset entity

Determination of Maximum Loan Amount:
The lower of the following:
(i) original insured mortgage amount: (ii) 1.12 debt service coverage; or
(iii) The amount of the outstanding indebtedness plus financing, closing expenses, and any repairs

Subordinate Financing: With FHA’s approval; soft subordinate financing paid out of available net project cash flow

Assumability: Assumable with permission of lender and HUD

Income & Expenses: Based on current market comparables (no trending)

Reserves: All tax, insurance, replacement reserve, and mortgage insurance premium escrows are required and must be transferred to the new loan. A repair escrow, if repairs are to be made.

Application Fee: $3/$1,000 of the mortgage amount applied for. 50% is refunded after
closing.

Lender Origination Fees: Negotiable, based on loan size.

Interest Rate: Interest Rates are based on market and are set upon acceptance of
Commitment.

Program Description: Fixed rate permanent financing for the acquisition or refinancing of existing apartment communities with at least 3 years of operating history.

Loan Amount: No Maximum/Minimum

Loan Term/Amortization: 35 Years

Prepayment: Negotiable, but typically locked for 2 years, then 8%, 7%, 6%, etc.
No penalty after 10 years.

Recourse: Non-recourse

Borrower: All properties must be owned by a single-asset entity

Determination of Maximum Loan Amount:
The lower of the following:
(i) 85% of HUD appraised value; (ii) 1.17 debt service coverage; or
(iii) Purchase – 85% of cost to acquire (including estimated repair costs, financing and closing expenses and initial deposit to replacement reserve); Refinance – The greater of (a) the amount of the outstanding indebtedness plus financing, closing expenses, and initial deposit to replacement reserve, or (b) 80% of value.

Subordinate Financing: Allowed up to the lesser of: (i) 7.5% of value; (ii) 50% of the cash requirements to close.

Occupancy: No specific occupancy requirements prior to permanent loan funding.

Assumability: Assumable with permission of lender and HUD.

Reserves: Tax, insurance, replacement reserve, and mortgage insurance premium escrows are required. Repair escrow may be required, if repairs are not completed and approved by HUD prior to closing.

FHA/Application Fee: $3/$1,000 of mortgage amount.

Lender Origination Fees: Negotiable based on loan size.

Interest Rate: Interest Rates are based on market and are set upon acceptance of Commitment and fixed for entire term.

Program Description: Combination construction and permanent loan program for new construction or substantial rehabilitation of nursing homes, homes for the aged and assisted living facilities.

Loan Amounts: No Maximum/Minimum

Loan Terms/Amortization: Construction Loan – Up to 2 years
Permanent Loan – Up to 40 years (self - amortizing)

Prepayment: Negotiable, but typically locked for 2 years, then 8%, 7%, 6%, etc.
No penalty after 10 years.

Recourse: Non-recourse, for both construction and permanent loans

Borrower: All properties must be owned by a single-asset entity

Debt Service Coverage: 1.12

Loan-to-Development Cost Ratio: 90%

Subordinate Financing: With FHA’s approval; soft subordinate financing paid out of available net project cash flow

Assumability: Assumable with permission of Lender and HUD

Income & Expenses: Based on current market comparables (no trending)

Reserves: Taxes, insurance, replacement reserve and mortgage insurance premium escrows are required.

Financing Methods: Available for both Conventional financing and as Credit Enhancement for Bond transactions

Processing: T.A.P. – Lender underwrites, prepares and submits application; FHA processes application through permanent loan closing, including preparation of all third party reports

Interest Rate: Interest Rates are based on market and are set upon acceptance of
Commitment and fixed for entire construction and permanent terms

Conversion to Permanent Loan: Only requirements are completion and cost certification. Not subject to re-underwriting.

Program Description: Fixed rate permanent financing for the acquisition or refinancing of existing skilled nursing facilities and assisted living facilities with at least 3 years of operating history.

Loan Amount: No Maximum/Minimum

Loan Term/Amortization: 35 Years

Prepayment: Negotiable but typically locked for 2 years, then 8%, 7%, 6%, etc.
No penalty after 10 years.

Recourse: Non-recourse

Borrower: All properties must be owned by a single-asset entity

Determination of Maximum Loan Amount:
The lower of the following:
(i) 85% of value including major movables; (ii) 1.17 debt service coverage; or (iii) Purchase – 85% of cost to acquire (including estimated repair costs, major movables, financing and closing expenses and initial deposit to replacement reserve);
Refinance – The greater of (a) the amount of the outstanding indebtedness plus financing and closing expenses and initial deposit to replacement reserve, or (b) 80% of value.

Subordinate Financing: Allowed up to the lesser of:
(i) 7.5% of value; (ii) 50% of the cash requirement to close.

Occupancy: No specific occupancy requirements prior to permanent loan funding.

Assumability: Assumable with permission of lender and HUD.

Reserves: Taxes, insurance, replacement reserve, and mortgage insurance premium escrows are required. Repair escrow may be required, if repairs are not completed and approved by HUD prior to closing.

Application Fee: $3/$1,000 of mortgage amount.

Lender Origination Fees: Negotiable based on loan size.

Interest Rate: Interest Rates are based on market and are set upon acceptance of
Commitment.

Subordinate Financing: Allowed up to the lesser of:
*7.5% of value; * 50% of the cash requirements close

Assumability: Fully Assumable subject to HUD and Lender approval

Income: Underwritten at current Section 8 rents

Reserves: Property Tax (if applicable), insurance, replacement reserve, mortgage insurance premium escrow and Non-critical repair escrow. Critical repairs are completed and approved by HUD prior to closing.

HUD/FHA Application Fee: $3/$1,000 of mortgage amount

Interest Rate: Interest Rates are set upon acceptance of Commitment