Spreadsheet: c46b8612-c891-4aae-92d9-7630cbb90abd
Sheet: Eligibility-CH.3

[NAME] | ANSWER | Last Updated
Is there a definitive description of eligible facility types? | Section 3.9 of the 3/15/2002 MAP Guide provides full definitions, which can be found at the following link:  http://archives.hud.gov/offices/hsg/mfh/map/chapt3.pdf | 2012-02-01 00:00:00
Is a facility eligible for a 232/223f loan if a recent addition (completed less than 3 years prior to submission) is no larger than the original project size and number of beds? | Yes, the addition can be equal in size and number of beds to the older building and it would be eligible under Section 223f program. | 2012-02-01 00:00:00
Is a facility eligible for 232 New Construction if work has already started on the proposed project? | No.  OHP no longer authorizes early commencement approvals, so If work has started without approval from OHP, we will not consider insuring the project until it has met the 3 year seasoning requirement, per the CFR. | 2012-02-01 00:00:00
If an addition to an existing facility will house beds, even though no additional licensed beds or units are being added, must the application be processed as a blended rate? | If the new construction portion (new foundation) includes units/beds, and the repairs on the existing portion of the facility do not constitute substantial rehabilitation, it must be processed as a blended rate.  If repairs on the existing portion constitute substantial rehabilitation, the project must be processed as substantial rehabilitation. | 2013-03-01 00:00:00
If a facility undergoes renovations to convert the rooms from semi-private to private rooms, and in the process expands the footprint of the facility, would such a project be required to wait three years before making application for Section 223(f)/232 mortgage insurance? | You can submit a 223f refinance application on the whole project after the addition is completed as long as the addition is smaller in size than the original facility.  You would not need to wait three years, but you would have to mitigate any remaining rent–up risk with an Initial Operating Deficit escrow and possibly consider using new construction LEAN LTV benchmarks for LTV for the recently constructed addition portion of the project. | 2012-02-01 00:00:00
If a facility seeks 223f financing and intends to add units, but does not want to hold up the refinancing to wait for the addition to be approved, when can a 241a application be submitted? | You may submit both a 223f and 241a application simultaneously.  However, if the 241a does not include [NAME]* on the work, the 241a application cannot  be closed until after the 223f is closed.  And if the 241a includes [NAME]* on the addition work, that work cannot commence on the 241a project until it initially closes (or after a Post Commitment Early Start of Construction approval).     *The rule for a 241a not needing [NAME] work/wages in the cost (which  requires the cost of all work be done with current Federal Prevailing wage rates) is that if the first loan was a 223f, then [NAME] wages are not needed, but if the first loan was a 232 NC/SR than the 241a must include [NAME] wages.  The other option would be to do a 223f on the whole project after the addition is completed (refinance is allowed under 223f provided the addition is smaller in size than the original). If you went this route, you would have to mitigate any rent–up risk remaining (Initial Operating Deficit escrow, and perhaps use new construction LEAN benchmark for LTV for the recently constructed addition portion of the project). | 2012-02-01 00:00:00
Can the 241(a) program be used for adding commercial space? | The 241(a) program is used for adding living units or rehabilitating the facility, thus commercial space addition would not meet program eligibility requirements. | 2012-02-01 00:00:00
Are FHA loans that were originated under the 542(c) Program eligible for 223(a)7 or 223f? | The Section 232/223(a)(7) Program is only available for FHA insured loans under the National Housing Act.  [NAME] deals are not part of that statutory authority, so an FHA refinance would need to be under 232/223(f). | 2012-02-01 00:00:00
Is there any possibility that OHP will be able to process 231 loans which will be associated with a 232? | The 231 loan would need to be a separate loan, and would be processed by the local Multifamily Hub; OHP can only process 232's and 242's.  In all possible situations, OHP and Multifamily will try to coordinate processing (e.g. the environmental review and closing could likely be done at the same time, etc.). | 2012-02-01 00:00:00
Would OHP consider insuring one loan that would be secured by three mortgages? | OHP has no objection to multiple facilities being insured under one note under the Section 232 program, but it would require three separate mortgages securing the note. | 2012-02-01 00:00:00
Are assisted living apartments financed/constructed under Section 232 only for the elderly, or could they also be used for individuals that require care for reasons other than being aged? | If property is constructed with Section 232 mortgage funds under the criteria of Assisted Living, this category is age restrictive to people 62 years of age or older. | 2012-02-01 00:00:00
Is the Section 232 program, as a whole, restricted to serving only the frail elderly? | The Section 232 program is for those who needs nursing care; that obviously includes frail elderly but  there are situations where it can also encompass folks with developmental disabilities, etc.  The age restriction on assisted living facilities is 62.  This is statutory, therefore it cannot be waived.  The 232 program does permit other types of facilities with no age restriction (nursing homes and board & care facilities); however, they have their own requirements/definitions according to the statue that your facility must meet in order to qualify. | 2012-04-01 00:00:00
Are there any special underwriting considerations for lower acuity Assisted Living Facilities? | If the units serve those needing assistance with at least 3 Activities of Daily Living (ADL) and meet the other ALF requirements (e.g. licensed) they are eligible under Section 232.  If they are independent, you would need to limit to 25% of total number of units or request a waiver of the 25% rule (for up to 30%). | 2012-02-01 00:00:00
Can a nonprofit foundation provide subsidies to a SNF sufficient to allow the facility to meet HUD underwriting criteria? | The proposal does not fit with non-recourse financing on Section 232’s – OHP would not be able to insure such a property. | 2012-02-01 00:00:00
Will OHP consider scattered site projects? | Projects not located on the same contiguous site are eligible for mortgage insurance under Section 232 if all of the sites will be licensed under the same license, and if the project can be efficiently and effectively operated as a scattered site project. | 2012-02-01 00:00:00
Are Assisted Living Facilities that have to renew their license every year eligible to be processed under HUD? | Yes. The regulatory agreements require that the owner/operator/management agent maintain the license though the mortgage.  The license must simply be maintained and not removed from the project. | 2012-02-01 00:00:00
Can we combine the two insured mortgages into a single Section 223(a)(7)? | Yes. The regulatory agreements require that the owner/operator/management agent maintain the license though the mortgage.  The license must simply be maintained and not removed from the project. | 2012-02-01 00:00:00
Would HUD consider Special use facilities for the 232 program? | Special use facilities that serve a niche market ([NAME]; drug, alcohol, or eating disorder recovery facilities; hospice facilities; or short term rehabilitation facilities) are permissible.  Lenders interested in submitting an application for such a facility should contact OHP in advance to discuss the project and its feasibility. | 2012-02-01 00:00:00
What is the definition of the amount of non-substantial rehabilitation that may occur and still not violate the three year rule? | In order to comply within the three-year rule, the hard costs of repairs, replacements and improvements must total less than 15% of the projects value after completion, and must involve fewer than two major building components being substantially replaced. | 2012-02-01 00:00:00
Does the 25% limitation on Independent Living refer to 25% of units or 25% of residents? | The limitation on Independent Living refers to 25% of units. | 2012-02-01 00:00:00
Will LEAN consider reviewing a blended rate transaction on a purchase that will involve an expansion consisting solely of Independent Living units? | If the existing unit mix and the final resulting unit mix remain at or below the maximum allowable percentage, then OHP will consider this transaction.  It can be accomplished in one of two ways :                                                                                                                                                                                                                                                         1.Process with one blended rate loan (with [NAME] – on both NC and any repairs to existing).     2.  Process with 2 loans - a 241a ([NAME] depends upon what original/first loan placed on property required) and a 223f. | 2012-02-01 00:00:00
Will LEAN consider doing a Continuing Care Retirement Community (CCRC)  healthcare facility with a percentage of beds that are not licensed? | OHP prohibits projects with “life care fees,” "founder's fees" or the equivalent.  If there are no such fees required, OHP will consider projects with 25% or less of the units that are independent (with no license). | 2012-02-01 00:00:00
How does a facility meet HUD's Board and Care Home guidelines if not licensed? | Licenses are not required for Board and Care because not all states license them. The facility must be regulated by the State, Municipality, etc., and in lieu of a license, state agencies in non-licensing states must provide a certificate stating that the facility complies with local standards and requirements.  The lender is required to make a statement in the Lender Narrative that the State complies with the [NAME] amendment, which means upholding certain standards with board and care facilities. | 2012-02-01 00:00:00
Can you provide what verification documentation HUD will be looking to receive from an owner that the CMS Mandatory Sprinkler System requirement along with any HUD requirements has been met? | The owner should supply HUD with its most recent State Survey which was reported on the Fire Safety Survey Report (Form CMS-2786R (06/07) EF 06/2007).  On that report, the response to ID Prefix K0180 will indicate if the facility is A. Fully Sprinklered or B. Partially Sprinklered or C. Non- Sprinklered.  HUD has no additional requirements on this issue as of 11/28/2011. | 2012-02-01 00:00:00
Could you  clarify the length of the loss period for which a Mortgagor/Operator would be eligible to recoup losses with an Operating Loss Loan? | There are two types of Operating Loss Loans:  a. Section 223(d)(2): i. Loss period is the 24 months immediately following the cost cut off date. ii. Application must be made within 3 years following the end of the loss period.  b. Section 223(d)(3): i. Loss period is any 24 month period within the first 10 years following cost cut off date.  ii. Application must be made within 10 years following the end of the loss period.  There can be both a (d)(2) and a (d)(3) placed on a property, however the loss periods can not overlap.  OHP is working to devise specific instructions and guidance for these types of loans, and will make those available as soon as possible. | 2012-02-01 00:00:00
Is a waiver of the requirement that properties have been in operation for three years subsequent to construction to be eligible for refinance with FHA mortgage insurance possible for a Sec. 232/223f loan?  Specifically, is a waiver possible for a new construction health care property that opened nine months ago? | No. LEAN will not accept a 223f application for a project until three years after construction is complete (for new construction and substantial rehabilitation). This is a statutory requirement.  The date of the Firm Commitment application is used when making this determination. | 2012-02-01 00:00:00
We have a new construction assisted living where site improvements such as grading and utilities have already been done. Can construction of this project now be financed under Section 232? | We can’t insure this project under Section 232 unless the project is in full compliance with the [NAME] requirements which applies to all the work done to the site.  At this point, it would require documentation that all work already completed on the site met [NAME] requirements.   Labor Relations staff would need to review the specific situation.  If an acceptable solution were worked out with our Labor Relations staff, we would then need to address the issue of inspection of the work already done. | 2012-02-01 00:00:00
If bridge money is used for an acquisition in order to close very quickly, will the 2 years (for the eligible debt seasoning requirement) need to elapse before applying for HUD mortgage insurance? | If the bridge loan financing meets the rules of eligible debt and there is no cash out to the borrower/purchaser, we would not require seasoning of the debt.  In order to document this, the Lender Underwriter must include a copy of the purchase agreement and bridge loan settlement statement in the LEAN submission | 2012-02-01 00:00:00
We are preparing Section223(a)(7) refinancing application(s) for a nursing home that currently has both an outstanding Section 232 loan and a Section 241 loan.  Can the two loans be consolidated into a single application?  If this is allowable, should the underwriting documents consolidate the loans into a single loan, or should they be kept separate (92264-A, Application Fee check, etc…)?  Similarly, in the narrative, should we use single columns for items like costs and sources and uses, or break them out by loan?  Should the Executive Summary in the Narrative use consolidated amounts? | Yes, we do allow this consolidation of loans.  The two loan balances can be combined (although each original loan and Section of the Act should be clearly shown on Lender Narrative Executive Summary) and meet the loan sizing under a 223a7; the lender should submit a single 92264a, application fee, [NAME] with consolidated sources and uses, etc. since they are seeking to combine the outstanding debt into the one 223a7 loan.   You would submit one FHA # request – you’ll want to note in the email that it is to consolidate the 1st and supplemental loan.  If the final closing on the 241a has not occurred prior to the time when we are ready to issue the Firm Commitment, we can condition the Firm Commitment for the 241a final closing to occur prior to closing the 223a7 loan.  You may also submit the prepayment approval request asking for a conditional approval to pre-pay. | 2012-09-30 00:00:00
Can a 223a7 application be submitted after the prepayment approval has been requested, but before it has actually been received? | Yes, please include the 9807 request submitted to OHP under the appropriate application exhibit, and we can follow up to ensure it has been processed.  We will need to confirm prior to Firm Commitment that termination of insurance is allowable under the note in order to prepay.  Also, once you are assigned an underwriter, be sure to update them on the status (whether you have heard back from HUD or you are still awaiting a response) and we can get that resolved in underwriting. | 2012-04-01 00:00:00
Can an FHA-insured facility do a small memory care addition (8-12 units) to their existing ALF using their own cash?  Is this allowable instead of using the 241(a) program?    If so, is there a formal process for notifying the HUD Loan Servicer (OHP Account Executive)? | The mortgagor’s regulatory agreement bars material changes to the mortgaged property without HUD’s permission.  However, an improvement funded by owner infusion of cash is something that HUD would consider, since it might improve the value of the mortgaged property and the cash flow available for lease payment and debt service.    The mortgagor should make the request to their assigned OHP Account Executive.  HUD would require significant details in evaluating such a request. | 2012-04-01 00:00:00
In recent meetings, OHP officials have stated that Lean is not interested in “rehab hospitals.”  Would OHP consider a skilled care facility that specializes in physical rehabilitation?    These facilities are specifically designed to cater to Medicare and managed care residents and others needing intensive rehabilitation services following a hospital discharge.  The community is non-institutional with a residential atmosphere.  Residents may have an orthopedic diagnoses, stroke related diagnoses or a mix of diagnoses ranging from cardiac related issues to pneumonia.  The common thread for all of the residents is that they require extensive physical, occupational or speech therapy.   If the facility is primarily reimbursed through Medicare and is not Medicaid qualified, so the payor mix is heavily Medicare.  We would need a waiver of the Medicaid rule, since Medicaid is not available. | OHP has done a few of these sub-acute rehabilitation centers that tend to be very high Medicare payor mix.  The critical analysis that an appraiser/market study reviewer needs to include is number of hospital discharges in the market area for this type of rehabilitation.  Also an analysis of the length of stay in the rehabilitation facility needs to be determined.  OHP would require a very conservative initial operating deficit for this as well as an establishing a debt service reserve escrow. | 2012-04-01 00:00:00
Is it permissible, under HUD and OHP guidelines, for a Mortgagor to also be a Loan Servicer? | No, FHA rules prohibit the owner from any Identity of Interest relationship Lender or Servicer. | 2012-04-01 00:00:00
Is it permissible for a Lender to purchase the GNMA security (as a passive role) on a project  for which they are not the Originator or Loan Servicer? | OHP has no legal objection to this request. | 2012-04-01 00:00:00
If a seller has put improvements into a land parcel such as grading and an off-site storm water management system, and an unrelated buyer is purchasing the land to construct an assisted living facility, can we apply for 232 insurance? | If improvements were made to the property prior to an Application being submitted to HUD, then that issue alone should not affect the ability to obtain a Section 232 loan.  If site improvements were made after an Application was submitted to HUD, then obtaining a Section 232 loan may be jeopardized. | 2012-04-01 00:00:00
Multifamily Housing has increased their working capital minimum requirement on 221(d)4 loans to 4%.  Has OHP incorporated a similar increase on LEAN New Construction projects? | No, OHP hasn't enacted any of the changes that were in the Multifamily notice – thus for 232’s the working capital requirement is still 2%. | 2012-04-01 00:00:00
Is a US-HUD Builder Seller 2013 Cooperative residential Care facility eligible for Section 232 Mortgage Insurance? | No.  Cooperatives are not eligible for Section 232 Mortgage Insurance. | 2012-09-07 00:00:00
How does LEAN handle identity of interest transactions whereby a member of the lender has a family relationship with an individual involved with the borrower/sponsor? | A non-identity of interest lender must underwrite the project (i. e. a different lender). | 2012-02-01 00:00:00
Can a lender process a refinance on a facility owned by an attorney or other third party vendor who does contract work for that lender on other transactions? | A financial relationship between a contract employee of the FHA LEAN Lender and the borrower of a proposed project would constitute an Identity of Interest between the Borrower and Lender of the proposed FHA Loan.  However, as long as the contract employee refrains from representing him/herself and from preparing any third party reports on the transaction, the transaction may be able to move forward.  This potential conflict of interest must be disclosed on the lender certification so that it may be analyzed by the HUD Underwriter. | 2012-09-07 00:00:00
An Owner/Manager is selling a facility to a third party and will retain the Management under a Management Agreement. The Agreement will likely contain specific incentives related to occupancy, cash flow, etc., which are common in the Industry with a third party Manager. Would this Agreement constitute an Identity of Interest? | If the seller is a management agent that intends to retain the management after the transaction has been completed, HUD may not necessarily consider this an identity of interest for debt seasoning/eligibility purposes (see January 6, 2012 Email Blast reference below for a related discussion of sale/leaseback transactions).  The potential conflicts of interest would need to be disclosed on the Management Agent Consolidated Certification.  The buyer and seller would have to be non-identity of interest parties, and neither would be able to have an IOI with the Operator (non-applicable in this case).  The lender would need to demonstrate that the transaction is arms-length and at market value.  You would also have to show that the management agent and mortgagor entity have no identity of interest that survives the transaction.  Finally, the Management Agreement would need to include, among other requirements, a clause that provides that management fees will be computed and paid according to OHP requirements. | 2012-09-07 00:00:00
Does HUD Lean allow the Lender to process and close a Loan with an Identity  of Interest between the Mortgagor and Lender. | No, an IOI  between the borrower and the underwriting lender of a HUD Lean deal is not permitted. | 2012-09-07 00:00:00
In a contemplated 232 acquisition, the seller is looking to sell to a person with whom he has a current business relationship. The buyer and seller are in partnership together in both ownership and operation/management of other elder care projects. They are not in partnership on this piece of property. If the seller is exiting the project (from both management and ownership) and the buyer is not currently involved in the project, can this be treated as an acquisition; even though they have other projects in common? | This relationship would be considered an identity of interest (IOI) between the buyer and seller.  Even if they are not involved on the subject project together, they do other business together, thus they have a financial relationship that will survive this transaction.  In addition to being treated as a refinance, IOI purchases also require a debt seasoning period of two years. | 2012-09-07 00:00:00
On a contemplated 232 NC transaction for an assisted living facility, the proposed owner, who has no relationship (family or financial) with lender, would like for an affiliate company of the lender to manage the facility.  Is this allowed? | No, a management company affiliated with the HUD Lean Lender cannot manage the project.  A management agent contract for the benefit of the lender could influence the lender's underwriting in the transaction to the detriment of HUD. | 2012-09-07 00:00:00
A contemplated LEAN refinance transaction of an existing skilled nursing facility is managed by a company affiliated with the lender.  One of the members of the Non-Profit Mortgagor’s board of directors has a familial relationship with an affiliated of the lender.  Can this lender underwrite and submit this transaction to LEAN ? | This relationship would not be considered an Identity of Interest, and thus would not prohibit the lender from submitting a firm application on this transaction. | 2012-09-07 00:00:00
Is there any issue with a bridge lender also being the HUD Mortgagee, assuming this dual purpose lender has no identity of interest with the Mortgagor entity (and the bridge debt has seasoned for 2 years)? | If there is an identity of interest between the bridge lender and the FHA lender, HUD requires the FHA lender to disclose any such identity of interest so that the bridge loan may be carefully analyzed in order to address any potential concerns regarding the objectivity of the value analysis.  This situation should not preclude participation in the 232 Program as long as the debt has seasoned for two years and the facility meets the Section 232/223(f) property eligibility requirements. Please be aware of the construction requirement included below.   Also if the project is to be financed through sale of bonds the maximum financing fee the mortgagee may retain is 3.5%. Where there is an identity of interest between the interim Lender and the new permanent Lender maximum cost that can be recognize in the mortgage is this 3.5%. OHP recommends that you clearly itemize all lender fees in the application and clearly identify this IOI relationship between the current lender and the proposed lender.                                                                                                                                                                                                                                                                                    Section 232/223(f) Projects for acquisition or refinancing:  Property eligibility.  The facility must have been completed or substantially rehabilitated for at least three years prior to the date of the Firm Commitment application.  Projects with additions completed less than 3 years previous are eligible as long as the addition was not larger than the original project in size and number of beds. | 2013-03-13 00:00:00
Does a property need to be eligible per the 3-year rule at the time of submission of the application, or would HUD accept an application submitted a few months in advance of the 3-year eligibility date? | Yes.  The facility must have been completed or substantially rehabilitated for at least three years prior to the date of the Firm Commitment application.  Projects with additions completed less than 3 years previous are eligible as long as the addition was not larger than the original project in size and number of beds. | 2013-03-01 00:00:00
How should lenders approach the underwriting of assisted living facilities or board and care facilities whose license types may not fully conform with Section 232 criteria? | When submitting firm applications for assisted living or board and care facilities, we would recommend that you fully explain the type of license and the services provided by the facility in your application submission.  Any instances of Section 232 criteria that may possibly differ from the proposed subject facility's license type would need to be addressed in the application. However, if the project is being submitted as an Assisted Living Facility it would be required to serve those who are frail elderly (meaning age 62 and over, requiring assistance with three Activities of Daily Living); and if it were being submitted under the Board and Care Home criteria, it would need to provide residents with continuous protective oversight. | 2013-03-01 00:00:00
How should lenders underwrite a facility in which the licenses of the service providers are bifurcated in such a way that one entity operates the residential facility under the license and the second entity maintains a contract to service the needs of the residents? | Such a scenario may be construed to be board and care.  When underwriting a board and care facility receiving social security income for the residents, the lender needs to provide certification from the state agency that the facility complies with local standards and requirements.  Additionally, the lender must also make a statement in the Lender Narrative that the State complies with the [NAME] amendment.  The way in which the healthcare services are provided to the residents will dictate how the healthcare provider is underwritten.   If the healthcare agency holding the assisted living services agency license is somehow affiliated with the mortgagor, it would need to be underwritten. | 2013-03-01 00:00:00
Are group homes eligible for Section 232 mortgage insurance? | If a group home meets the statutory requirements of one of the types of facilities defined in the Section 232 statute, then the fact that it is a group home would not be disqualifying. | 2013-03-01 00:00:00
How are Delaware Statutory Trusts (DSTs) treated in the Section 232 Program? | HUD’s regulations at 24 CFR § 200.5, with limited exceptions, require that an eligible mortgagor be a single asset mortgagor entity acceptable to the Commissioner.  A loan structure in which the DST would be the mortgagor raises concerns since in HUD's experience a DST would not be able to meet our requirements.  Organizational structures involving DSTs that would be considered for approval include a parent of the mortgagor or operator as a DST , or a DST as a member of a single asset entity mortgagor or operator. | 2013-03-01 00:00:00
is there a cap requirement as to how much  an assisted living facility can charge, while still remaining eligible to take advantage of Section 232 loan programs? | No, there is no cap requirement on how much an assisted living facility can charge as a condition of receiving HUD Section 232 financing, unless there are other funding sources brought in (such as grants or Tax credits) that have such restrictions. | 2013-03-01 00:00:00
Will ORCF consider transactions where the mortgagor or the operator is not a single asset entity? | If an applicant wishes to apply for Section 232 mortgage insurance with a structure other than a single asset entity mortgagor or operator, they’ll need to request for ORCF to consider an exception.   If this decision would determine whether or not the deal can move forward, the Lender may want to submit the a detailed request for an exception to Lean Thinking which addresses the reasons why such an arrangement needs to be done and addressing the risks to HUD prior to submitting a firm application. | 2013-03-01 00:00:00
How would HUD process a 232 loan application where the primary principal of the borrowing entity is a Trust? | For a Mortgagor or Principal of a Mortgagor, that is a Trust, at a minimum, the application needs to include (1) the Trust Agreement and (2) Certification or Affidavit of Trust.  OHP staff may request additional information during their review, if necessary, but these are the basic documents that will be added out our checklists. | 2013-03-01 00:00:00
A subject facility of a 223(f) refinance firm application needs to make the improvements to qualify for licensure; therefore the project will not be licensed until the improvements are complete. Can the improvements be completed after the 232/223(f) loan closes and there are funds available to complete them?  Or can the firm application be submitted prior to the improvements being completed? | This project would not be able to close without the license in place.  However, there is no reason why the 232/223(f) application cannot be submitted prior to completing the improvements needed to become licensed.  The fact that certain requirements are not in place at the time of the firm application will have to be documented in the application.  Additionally, a special condition to the firm commitment requiring licensure to be place prior to closing is required. | 2013-03-01 00:00:00
If the state agencies that have jurisdiction over services generally described as assisted living require providers to register, does HUD consider such a facility eligible as an assisted living facility in Section 232? | As provided for in the 2002 MAP Guide, Section 3.9 (C): Any Section 232 facility must be regulated by the State, municipality, or political subdivision in which the facility is or is to be located and the appropriate agency for such jurisdiction must provide a license or certificate that the facility complies with the applicable State or local standards and requirements for such facilities, including issues of staffing, occupancy, etc.  If the state agency explicitly differentiates their registration process from a certification or licensure process, then the registered facility would not be considered eligible as an Assisted Living Facility pursuant to Section 232 | 2013-03-01 00:00:00
Does HUD allow currently insured parcels to be divided to construct new ALF or SNF facilities? | The borrower would need to request a Partial Release of Security.  Please refer to Chapter 16 – Partial Release of Security; Alterations in HUD Housing Handbook 4350.1 located here: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_35289.pdf . | 2013-03-01 00:00:00