Lancaster Pollard announced two HUD refinances it closed on behalf of clients in Illinois and Oregon. First, Brett Murphy arranged an $11.2 million HUD loan for a 100-unit supportive living facility in McHenry, Illinois (Chicago MSA), which refinanced the original tax-exempt bond construction financing structured in 2007 and cut the ownership group’s debt cost of capital in half.
Then, Matt Lindsay and Casey Moore led the way on an $8.8 million HUD refinance of a 48-bed memory care community in Woodburn, Oregon. After successfully opening the community in 2014, ownership decided to refinance its senior and mezzanine construction debt into a non-recourse, 35-year fixed rate loan.
I am looking to build an assisted living home with 40 units.
Sherry, why don’t you contact one of the advertisers on our site that provides financing? But they will want to know what kind of experience you have.
I have heard that the HUD program will probably offer the most favorable terms however, the approval process for new construction can be 6 months or longer in some cases. The approved programs follow HUD requirements that allow for up to 90% financing for soft and hard costs and 40 year amortization. Interest rates are fixed for term of the loan and are non-recourse. I can have someone I know from an approved HUD lender for 232 and 242 facilities call with more details if you want.
Paul, as we discussed, this is a very competitive market. But good luck.