Last April, Love Funding celebrated our 30th anniversary by giving back to our communities through volunteer work and charitable donations. This April, we introduced a friendly challenge among Love Funding’s offices to see which team could perform the most acts of “love” by the end of the month. Love Funding employees have been busy walking dogs at animal shelters, calling bingo at assisted living facilities, participating in a community clean-up of the Chesapeake Bay, making donations to St. Jude’s Children’s Research Hospital, local police and fire departments, packing and sending care packages to our troops overseas, and serving breakfast at local food shelters. As we near the finish line, we invite our valued clients and industry partners to join us in this initiative. Drop us a line and let us know how you show the “Power of Love” in your communities throughout the year.
This month also marks operational day one for our merger with Midland States Bank, giving us the strength and backing of a $2.5 billion bank. This new relationship will allow Love Funding to provide more financing options than ever before, including expanded bridge loan capabilities. So give us a call and let us know how we can help you meet your financial goals.
HUD Financial Reporting
New HUD Requirements for Healthcare Facilities
Starting with Q1 2015, HUD has announced new quarterly financial reporting requirements:
- Operators of healthcare facilities financed under Section 232 of the National Housing Act (Section 232 Program) must submit to HUD and to the Servicer, on a quarterly basis, financial reports relating to facility operations.
- Quarterly reports must be submitted electronically to the Servicer no later than sixty (60) days after the end of the period covered, except for reports relating to the final quarter of each year, which shall be submitted no later than ninety (90) days after fiscal year end.
Please visit lovefunding.com/financialreporting for more information
RAD PROGRAM: LESSONS LEARNED
Expert Tips for a Smooth Transaction
The RAD Program’s conversion of annual operating and capital subsidies into Section 8 rental contracts allows public or private debt that may be combined with 4% or 9% Low Income Housing Tax Credits and, if available, other subsidies for affordable housing preservation. Here are a few key factors to ensure an efficient, successful transaction:
- Organization The RAD Program’s fast-paced timeline oftentimes calls for quick turnaround and key decisions. It is vital to have a project leader readily available to make timely decisions on behalf of the housing authority.
- Experienced Partners Choose the right partners with extensive affordable housing, tax credit and HUD experience. Your entire deal team should have a clear understanding of potential challenges and be willing to work together to resolve any issues along the way.
- Opportunities The RAD Program allows up to $100,000 of expenses of the development to be exempt from procurement requirements, but this may not be enough or even possible in some jurisdictions. Work with your lender and tax credit syndicator to ask for predevelopment funding from private sources that can be repaid at closing. This will help expedite the process substantially.
Want to learn more about the RAD Program? Call us today
BRIDGE TO HUD
Expanded Bridge Loan Capabilities
Love Funding is pleased to report the continued expansion of our bridge to HUD program. We are now offering bridge financing for multifamily and healthcare refinances and acquisitions through our parent company, Midland States Bank. The likely candidates for bridge financing have time constraints (i.e. acquisitions or expiring debt), are in need of a vehicle for cash-out on healthcare properties, or are newly constructed or renovated properties that have recently stabilized but face the current 3-year rule imposed by HUD. We are offering terms of 6 months to 3 years, amortizations up to 25 years, and competitive market interest rates. LTV’s vary by property type and the bridge loans are recourse with guarantees required.
These expanded bridge loan capabilities are in addition to the specialized, short-term bridge financing we already offer off of our balance sheet for transactions that have received HUD approval but need a quicker than normal closing. Continue to stay tuned for the additional financing options we are looking to offer in the near future, including tax credit bridge financing for affordable housing transactions and conventional construction financing.
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