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Centennial Mortgage, Inc. |
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• Mortgagor entity may be
either for-profit or not-for-profit.
• Certificate of Need for the facility must be
issued by the State, per that State’s requirements.
• For acute care hospitals, no more than 50% of
total inpatient days during any 1 year may be
assignable to chronic convalescence and rest,
drug and alcohol, epileptic, nervous and mental, mentally
deficient and tuberculosis care. |
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Subject to Davis-Bacon requirements.
Audited project financial statements must be
filed annually with CMI. |
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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. |
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This is a non-recourse loan.
Mortgagor assumes
no personal liability.
Long-term—up to 25 years, fully-amortizing.
Low, fixed interest rates.
Loan-to-cost ratio up to 90% (includes major
movable equipment).
Loan-to-value ratio for rehabilitation and
refinance up to 90%, with a minimum of 20%
(10% equipment) of the mortgage amount
attributable to rehabilitation.
Most affirmative and negative loan covenants
typically found in conventional loan agreements
are eliminated. Converts to permanent financing upon
completion at no extra cost.
Fully assumable.
Can be used as a credit enhancement for tax
exempt bonds. |
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| Click here to
download a PDF of this program. |
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