Subject to Davis-Bacon requirements.
v Audited project financial statements must be
filed annually with CMI.
Full escrows for property taxes and all
applicable insurance are funded at closing
and must be maintained throughout the life
of the loan.
A Replacement Reserve account must be
established at closing and is made
immediately available for replacement of
short-lived depreciable items.
An Operating Deficit escrow will be required
by HUD to cover operating losses until
sustaining occupancy is reached and must
be funded by with cash or a letter of credit.
This is a non-recourse loan.
Long loan term - up to 25 years, fully amortizing.
Low, fixed interest rates, fully amortizing.
Most affirmative and negative loan
covenants typically found in conventional
loan agreements are eliminated.
Converts to permanent financing upon
completion at no extra cost.
Fully assumable, subject to HUD and CMI
Can be used as a credit enhancement for
tax exempt bonds.
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