Centennial Mortgage, Inc.

207(m)

• Rehabilitation must be of such an extensive nature as to affect livability, marketability and competitive position and that; otherwise, the park is incapable of meeting its operating expenses and debt service obligations.
• Subject to Davis-Bacon require-ments.
• Audited project financial statements must be filed annually with CMI.

Please contact CMI for more informaiton.

Full escrows for property taxes and mortgage and property insurance are funded at closing and must be maintained throughout the life of the loan. A Replacement Reserve account must be established at closing and is made immediately available for replacement of short-lived depreciable items. The account must be maintained with monthly contributions throughout the life of the loan. Interest earned on the account accrues to the benefit of the property. An Operating Deficit escrow may be required by HUD to cover operating losses until sustaining occupancy is reached and, when required, must be funded by mortgagor with cash or a letter of credit.

This is a non-recourse loan. Mortgagor assumes no personal liability. Long-term—up to 40 years, fully-amortizing. Low, fixed interest rates. Loan-to-cost ratio up to 90%. Most affirmative and negative loan covenants typically found in conventional loan agreements are eliminated. Converts to permanent financing upon completion at no extra cost. No low-income tenancy requirements. Fully assumable. Can be used as a credit enhancement for tax exempt bonds. Debt service coverage ratio of 111%.

Click here to download a PDF of this program.