Centennial Mortgage, Inc.

232/ 223(f)

• Property must be at least 3 yrs old.
• Mortgagor entity may be either for-profit or not-for-profit.
• Property must meet State eligibility
requirements with regard to licensing and operating standards.
• For assisted living/board and care facilities, independent living units may not exceed 25% of the total number of residents.
• No founder’s fees, life care fees or similar charges are permitted.

Critical repairs must be completed prior to closing. Non-critical repairs must be completed within 12 months of closing. Must remain a rental property for at least 5 years after the loan closing date. Audited project financial statements must be filed annually with Centennial.

Full escrows for property taxes, mortgage insurance and any special assessments 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 hort-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. If the loan includes repairs or capital improvements to be completed after closing, an additional 20% repair escrow must be funded with cash or a letter of credit.

This is a non-recourse loan. Mortgagor assumes no personal liability. Long-term—up to 35 years, self-amortizing. Market-driven—no low-income tenancy requirements. Fixed interest rates. Loan- to-value ratio up to 85%. Renovations and improvements of up to 15% of value may be included in mortgage. Fully assumable. Most negative loan covenants typically found in conventional loan agreements are eliminated.

Click here to download a PDF of this program.