Healthcare >> Construction or Rehabilitation
* Up to 90% Loan to Cost
* 40 year amortization
* 40 year term (no balloon)
* Loan is assumable
* Non-Recourse
* Rehab costs must exceed $6500/unit
The HUD 232 program provides non-recourse construction and permanent financing for intermediate care, board and care, residential care, skilled nursing facilities, and assisted living facilities.
To qualify, properties must accommodate 20 or more residents (20 or more beds) who require skilled nursing care and related medical services, or residents who are in need of minimum but continuous care provided by licensed or trained personnel. Facilities must offer residents three meals a day under these program guidelines.
Operating leases to qualified facility operators are permissible, subject to HUD approval. Major movable equipment, day-care facilities, and fire safety equipment may be financed under the 232 Program. Intermediate care facilities, board and care facilities, and skilled nursing facilities must be licensed or regulated by an appropriate governmental entity. Any geographic location is potentially acceptable. Financing under this program is not available for properties charging "up-front" or "founder's fees". New Resident assessment fees are permitted.