Final Approval Process If HUD required any changes to the documents submitted during the Preliminary Approval review, the applicant's attorney must certify to HUD that the required changes have been made. The applicant has 45 working days from the date of preliminary approval to submit all executed and recorded documentation to HUD. The preliminary approval shall be the date on the letter. Where the applicant finds that he/she is unable to submit the appropriate documentation within the required time period, a written request for an extension of time must be submitted to HUD. This request must explain the reason for the delay. The applicant must provide the following for final approval: Recorded release, assumption and/or modification. Recorded Regulatory Agreement - Borrower; Riders. Recorded Regulatory Agreement(s) - Operator; Riders (if applicable). Recorded Memorandum of Lease and copy of executed lease (if applicable). Recorded secondary financing documents (if applicable). Recorded deed (if applicable). Recorded Uniform Commercial Code (UCC) (state and county). Title Policy or Endorsement, as applicable. Executed Deposit Control Agreements and Deposit Account Instructions Service Agreement (for government receivables, if applicable). Executed accounts receivable loan documents: note, loan agreement, security agreement, intercreditor agreement, rider, lockbox agreement (if applicable). Final Purchaser and/or lessee/operator attorney’s opinion. Executed security instrument and security agreements. Executed Bill of Sale and Assignment. If everything is acceptable, HUD sends a letter approving the transfer. If recording or other deficiencies are discovered, HUD will immediately tell the purchaser to correct them and to resubmit.
Executive Summary FHA Number: Project Name: Project Address: City / State / Zip: Lender Name: Part of a small, medium, or large portfolio: Yes No If yes, describe: Unit Breakdown: Room Type Care Type Beds Units e.g. private e.g. Assisted Living: e.g. semi private e.g. Skilled Nursing:
Identities-of-Interest Key Questions Yes No Have you, as the lender, identified any identities of interest on your certification? . Does the borrower’s certification indicate any identities of interest? Do any of the certifications provided by principals of the borrower identify any identities of interest? Does the operator’s certification (if applicable) indicate any identities of interest? N/A Does the management agent’s certification (if applicable) indicate any identities of interest? N/A Does the lender know, or have any reason to believe, that any of the assertions in the other Consolidated Certifications submitted herewith, are inaccurate or incomplete? <<For each “yes” answer above, provide a narrative discussion regarding the topic. As applicable, describe the risk and how it will be mitigated. For example: The borrower and operator are related parties – John Doe has ownership in both entities. No other identities of interest are disclosed. >> Title Title Search Date of Search: Firm: File Number: Key Questions Yes No Is the title currently vested in an entity or individual other than the current borrower? . Does the report indicate that delinquent real estate taxes are owed? Does the report indicate any outstanding special assessments? Does the report identify any outstanding debt that is not disclosed on the borrower’s listing of outstanding obligations? Are there or will there be any Use and Maintenance Agreements associated with this facility?
Key Questions Yes No Does the credit report identify any material derogatory information not previously discussed? . Does the lender have any concerns related to their review of the credit report? <<For each “yes” answer above, provide a narrative discussion on the topic describing the risk and how it will be mitigated.>> Other Business Concerns/232 Applications Key Questions Yes No Does the Principal identify any other business concerns? . Do any of the other business concerns have pending judgments; legal actions or suits; or, bankruptcy claims? N/A Do the credit reports on the 10% sampling of the other business concerns indicate any material derogatory information? N/A Does the Principal identify any other Section 232 or Section 232/223(f) loans on the Consolidated Certification – Principal of Borrower (form and Attachment 2 thereof? <<For each “yes” answer above, provide a narrative discussion on the topic describing the risk and how it will be mitigated. Example: Other Business Concerns: XXXXX identified XX other business concerns in addition to the borrower and the newly formed operator discussed in this narrative. The lender 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 participation in this loan transaction. Example: Other Section 232 Applications: XXXXX identified XX other Section 232 loan application – {projects}. The applications were submitted XXX and closed in XXX. As this is only XXXXX’s Xth HUD-insured healthcare loan, no additional reviews are required>> Financial Statements <<If the new borrower has sufficient financial strength, no review of a principal’s financials is required. If a review of the principal’s financials is required to support approval of the TPA, provide an analysis similar to the one provided for the new borrower, above. >>
Conclusion <<Provide narrative discussion of lender’s conclusion and recommendation. For example, “XXXXX has demonstrated an acceptable credit history and sufficient experience owning and operating this and other facilities. The lender recommends this principal as an acceptable participant in this transaction.”>> New Operator (if applicable) Name: State of Organization: Date Formed: Termination Date: FYE Date: Key Questions Yes No Will the new operator currently own/operate any assets other than the subject property or participate in any other businesses? . Will the new operator contract out nursing services other than temporary staffing through an agency and/or contracting for ancillary services (e.g., therapies, pharmaceuticals)? Has the new operator been delinquent on any federal debt? Is or has the new operator been a defendant in any suit or legal action? Has the new operator ever filed for bankruptcy or made compromised settlements with creditors? Are there judgments recorded against the new operator? Are there any unsatisfied tax liens? <<For each “yes” answer above, provide a narrative discussion on the topic describing the risk and how it will be mitigated. >> Organization <<Provide organization chart and narrative, as applicable. >> Experience/Qualifications <<Provide narrative description of new operator’s experience and qualifications. Discussion should highlight direct experience and involvement in other HUD transactions, if any. This section should clearly demonstrate that the new operator has the expertise to successfully operate the facility.>>