Elderly developments, also known as independent living facilities, are properties designed for the elderly that may not contain services associated with retirement centers such as central kitchens and dining areas. Benefits of elderly developments include:
No non-shelter services is a mandatory condition for occupancy.
Common use areas in non-shelter spaces (such as a clubhouse) are allowed to have modest equipment in a common use kitchen.
HUD 221(d)(4) properties cannot finance assisted living facilities or skilled nursing homes, only independent living facilities.
Borrowers can get non-recourse 40-year fixed-rate and fully-amortizing financing (following a 3-year interest-only construction loan) while benefiting from high-leverage and HUD’s ultra-low interest rates.
To learn more about HUD multifamily construction loans like the HUD 221(d)(4) loan, click here.