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News & Events - Love Funding

New LEAN Handbook

May 23, 2016

HUD released a new draft handbook for the Section 232 Healthcare Mortgage Insurance Programs that will offer new financing opportunities for healthcare borrowers. Some of the more noteworthy changes proposed in the new handbook include:

  • Improved Debt Seasoning Requirements
    The new debt seasoning requirements focus exclusively on the period of time needed for a project to demonstrate its ability to generate a sufficient level of cash flow to support the value and pay the debt service. What this means is that there is no longer an automatic two-year seasoning requirement, but rather tiered leverage depending on the use of the existing debt.
     
    % of Existing Debt Used for Project Purposes
    (vs. equity out)
    HUD Loan Amount
    ≤60% LTV
    HUD Loan Amount
    61-70% LTV
    HUD Loan Amount
    ≥71% LTV
    >50%
    No seasoning required
    No seasoning required
    2-year seasoning required
    ≤50%
    No seasoning required
    2-year seasoning required
    2-year seasoning required

    In order for the two-year seasoning requirement to not apply, value must be supported by 3+ years of stabilized historical cash flow which supports the market value.

  • Operator Debt Now Eligible
    Previously, all operator debt was considered ineligible for refinancing with HUD. Now, any operator debt tied directly to the project is considered eligible, including costs related to FF&E purchases, working capital related to lease-up and stabilization, and capital expenditures. Costs associated with AR lines of credit, acquiring beds or CON’s are still not eligible.
  • Identity of Interest (IOI) Purchase Debt
    Existing indebtedness related to the purchase of partnership interests are now immediately eligible for refinancing through HUD without the two-year seasoning period, so long as the seller has no residual rights to the project control and no residual rights to reacquire the project within 5 years of the HUD closing. The purchase must have occurred prior to date of the HUD firm commitment.

These are only a few of the exciting changes that are part of the revised 232 Handbook – there are many more! HUD has clearly demonstrated their ability to listen to the lender and borrower community in order to provide financing solutions that are more in line with market occurrences. These proposed changes will not go into effect until after the comment period has closed next month, but now is the best time to start exploring what these exciting changes could mean for you and your investments.

Love Funding Secures $6.17 Million in Financing to Help Preserve Low-Income Housing Apartments in Los Angeles

May 20, 2016

Imani-Fe-Apartments-1Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $6.17 million refinancing for Imani Fe Apartments, a 92-unit low-income housing community in Los Angeles.

Love Funding Senior Director James Vanar of the Los Angeles office secured the financing through the U.S. Department of Housing and Urban Development’s Section 223(f) loan insurance program. The loan proceeds will be used to pay off the existing debt, fund a replacement reserve and provide a permanent financing solution for the borrower. The term of the non-recourse, fixed-rate loan is 35 years.
Continued…

NYSHFA/NYSCAL 67th Annual Convention

May 19, 2016

Senior Director Leonard Lucas and Director Matthew Meskill will be exhibiting at the NYSHFA/NYSCAL Annual Convention June 26-29, 2016 in Bolton Landing, NY. Stop by our booth to learn about the many financing options available through HUD’s finance programs as well as Love Funding’s bridge loan platform.

PHFA Affordable Housing Conference

May 19, 2016

Join Director David Opalek at PHFA’s Multifamily Affordable Housing Conference June 22-24, 2016 in King of Prussia, PA. Learn more about our affordable housing finance programs here.

Affordable Housing by the Numbers

May 18, 2016

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Calendar

Western Regional Trustee Symposium

Senior Director of Hospital Finance Steven Hunt will be exhibiting at the Western Regional Trustee Symposium June 8-10, 2016 in Phoenix, AZ. Learn more about our hospital finance programs here or contact Steve today to schedule a meeting at the symposium.

Novogradac’s Affordable Housing Conference

Regional Director Bruce P. Gerhart and Director David Opalek will be attending Novogradac’s Affordable Housing Conference May 26-27, 2016 in San Francisco, CA. Stop by our booth to learn more about reduced MIP rates and the many financing options available for affordable properties through HUD’s finance programs. Bruce will be speaking on a panel Thursday […]

NCSHA Housing Credit Connect

Director David Opalek will be attending NCSHA’s Housing Credit Connect Conference June 13-16, 2016 in Seattle, WA. Look for Dave there to discuss your financing needs.

PHFA Affordable Housing Conference

Join Director David Opalek at PHFA’s Multifamily Affordable Housing Conference June 22-24, 2016 in King of Prussia, PA. Learn more about our affordable housing finance programs here.

2016 NAA Education Conference & Expo

Senior Director Robyn Cunningham and Director Adrian Hartman will be exhibiting at the 2016 NAA Education Conference & Expo June 15-18 in San Francisco, CA. Contact us today to schedule a meeting at NAA or stop by booth #1207 to discuss your property’s financing needs. Learn more here.

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