Executive Summary FHA number: Project name: Project location: <<street address, city, county, and state>> Lender’s name: Lenders UW: UW trainee: Borrower: Operator: Parent of operator: Management agent: General contractor: License holder: Borrower Operator Management agent Type of facility: Skilled Nursing (SNF): beds units Assisted Living (AL): beds units Board & Care (B&C): beds units Dementia Care: beds units Independent Living (IL): beds units Total: beds units Mortgage Amount: $ Loan-to-value: % Loan to transaction cost: % Term: years Interest rate: % Principal & interest: $ DSCR (with MIP): % Market value per bed/unit*: $
(without MIP) Underwritten market value: $ Cap rate: % Mortgage amount per bed/unit*: $ *Use per bed for SNF, or facilities with multiple care types (e.g., SNF/ALF). Use per unit for ALF only. Mortgage Criteria: Sensitivity Analysis: Criterion A: Requested loan amount: $ A 1.0 debt service coverage is still realized if: Average rental drops $ per month. Occupancy rate decreases %. Operating expenses increase % per year. Annual net operating income (NOI) decreases $ or %. Criterion C: Amount based on replacement cost: $ Criterion D: Amount based on loan-to-value: $ Criterion E: Amount based on debt service coverage: $ Criterion F: Amount based on estimated cost of rehabilitation plus: $ Criterion L: Amount based on deduction of grant(s), loan(s), LIHTCs, and gift(s) for mortgageable items: $ As rehabilitated: Gross income: $ UW occupancy rate: % Effective gross income: $ Expenses & repl. res.: $ Expense ratio: % Net operating income: $ Expense per bed/unit*: $ Total project cost: $ Total project cost per bed/unit*: $ *Use per bed for SNF, or facilities with multiple care types (e.g., SNF/ALF). Use per unit for ALF only. Operating deficit: $ Absorption rate (# beds per month): Number of months to cover shortfall: Break-even occupancy: % Borrower’s working capital: $ Special escrows (describe below): $ Minor movables: $ <<describe special escrows here>> Major movable equipment budget: $ Major movable amount per bed: $ Construction contract: $ Offsites $ Demolition $ Total construction costs: As reported on HUD-2328, Line 53 plus Offisites and Demolition $
Key Questions Yes No Are there any debts on the borrower’s balance sheet or recorded against the property, other than the primary mortgage, that will survive closing? . Are any of the debts to be paid off less than 2 years old? (Refer to Program Guidance below.) Does the borrower have any identities of interest with any of the existing lenders or noteholders? (Refer to Program Guidance below.) Do any of the debts to be paid off have prepayment penalties or other significant cost associated with them? Is any of the existing debt cross-collateralized with other assets (pooled debt or master leased) or financed with a line of credit? (If yes, explain how you allocated the debt between the facilities cross-collateralized.) Are delinquent real estate taxes included as an eligible transaction cost? <<For each “yes” answer above, provide a narrative discussion on the topic describing the risk and how it will be mitigated. >> <<If Swap Fees are not applicable to subject transaction this section may be deleted>> Swap Fees: If Swap Fees are eligible and will be included in the FHA-insured mortgage, please answer the following questions: Key Questions Yes No If the original financing is tax exempt, is there a legal opinion from qualified counsel that states the swap meets the definition of a “Qualified Hedge” or is substantially in conformance with that definition? (Check N/A if financing is taxable.) . N/A For interest rate swap contracts related to taxable financing, was the swap integrated with the original financing and entered into as an interest rate hedge within 15 days of the original financing? (Check N/A if financing is tax exempt.) N/A Is the loan-to-value with the swap termination costs included at or below 80% Is the swap termination cost proposed no more than 10% of the insured mortgage proceeds? Was the interest rate swap contract put into place prior to January 1, 2009? Does the Fairness Certification acceptably address the requirements outlined in Mortgagee Letter 2012-08? Program Guidance – Eligible Debt on a Refinance: