Executive Summary—Substantial Rehabilitation Initial Submission FHA number: Project name: Project location: <<street address, city, county, state, and zip code>> Lender’s name: Lenders UW: UW trainee: Borrower: Operator: Parent of operator: Management agent: General contractor: License holder: Borrower Operator Management agent Residents will contract with: <<Entity with whom residents will contract for services>> Section 38 of the Regulatory Agreement shall apply to the following individuals and/or entities (list name(s)): Type of Facility As Is: Licensed Operating Licensed Operating Skilled Nursing (SNF): beds units Assisted Living (AL): beds units
<<NOTE: The above reflect HUD’s definitions of facility or care types. Those definitions may not align with state licensing definitions.>> Independent Units-As-Is Select all applicable statements: There will be NO unlicensed/independent beds at the subject. There will be unlicensed/independent beds at the subject; however, the total does not exceed 25% of the total beds at the facility. Independent Units-As-Rehabilitated Select all applicable statements: There will be NO unlicensed/independent beds at the subject. There will be unlicensed/independent beds at the subject; however, the total does not exceed 25% of the total beds at the facility. Licensing/Certificate of Need/Keys Amendment Number of Beds to be licensed: Lender has verified that the beds or units in operation are in compliance with the State licensing agency. <<Provide affirmative statement along the lines of: “The facility is to be licensed by the State of {State}’s Department of Health and Welfare as a {Type of Facility} for {X} beds. The license is to be issued to {Name of Entity on License}.” Describe the licensing process. It is effective {date}, through {date}. The license covers {number of beds}.”>> <<Provide affirmative statement along the lines of: “There is no Certificate of Need (CON) requirement in {State} for {Type of Facility}.” – OR – “A Certificate of Need (CON), dated {XXX} was issued by the State of {State} authorizing XX beds…”>> For skilled nursing, where the state does not require a CON, discuss the required independent study conducted by the state or commissioned by the state of market need and feasibility. Include in the discussion the number of beds and the date through which it is current. <<(Applicable on projects with added units/beds.) If a new/updated CON is required by the local regulatory authorities, it is to be issued to the current license holder. Provide affirmative
Credit Reports for Other Business Concerns: <<Provide narrative discussion on other business concerns. For example, “XXX identified XX other business concerns. The underwriter reviewed Dunn and Bradstreet credit reports for XX other business concerns identified by XXXX. {Discuss each report}. No reports indicated derogatory information that would prohibit XXXXX from participation in this loan transaction.>> Name of Entity Report Type (Commercial, etc.) Report Date Comments (i.e., any derogatory information, etc.) Financial Statements – For Party(ies) Responsible for Financial Requirements for Closing and Beyond – <<enter name(s) of responsible party(ies) here>> <<Complete this section if the borrower entity does not have sufficient financial capacity.>> Year to date: <<dates for start and end of period>> Fiscal year ending: <<date – end of period>> Fiscal year ending: <<date – end of period>> Fiscal year ending: <<date – end of period>> <<Include a discussion on the borrower’s financial capacity. Include the percentage of owner’s equity into the project. The discussion must address: (1) the borrower’s net worth; (2) liquidity; (3) the borrower’s ability to meet the cash requirements of the project; and (4) the borrower’s ability to meet the financial obligations of the project for the long term.>> <<If Form HUD-92417-ORCF is included, provide discussion on the individual’s financial capacity, net worth and liquidity.>> Effective date (of HUD-92417) Total assets Net worth Total liquidity (cash available) Comments $ $ $
Terms and Conditions Describe the borrowing base formula (e.g., XX% of the AR borrowers accounts receivable up to 120 days): Describe term and renewal options: Describe the rate applied to the used and unused portion of the AR loan: Other fees (i.e., financing fees, late payment fees, etc.): Mechanisms for operator receipts, disbursements and control of operator funds: <<Describe the flow of all funds, into and out of accounts (i.e., point of origination to final destination). Describe how deposit accounts are controlled (e.g., number of controlled accounts, hard or springing lockbox, daily sweeps, etc.). Attach cash flow chart.>> Collateral/Security <Provide narrative description of the AR lender’s collateral/security. Explain any unsecured AR financing.>> Permitted Uses and Payment Priorities <<Provide descriptions of the permitted uses of the AR loan funds in order of priority. For example: (1) debt service incurred in connection with the AR loan; (2) operating costs; and (3) distributions to the operator’s shareholders. >> Financial Analysis Borrowing Base Analysis (Double click inside the Excel Table to add information) Historical AR Loan Costs <<If there is an existing AR loan that is not yet approved by HUD, provide a financial analysis that explains how the cost of the AR loan has been factored into the NOI calculation. Complete the Historical AR Loan Costs table.>>