Yonkers, New York
120 Beds , 66 Units, Skilled Nursing Care
The owners originally acquired the project utilizing FHA financing and were looking to reduce debt service by locking in a low long-term fixed rate. The project was not in full compliance with Americans with Disabilities Act requirements. The way that the identity of interest operator financed accounts receivable was not in compliance with current HUD requirements.
The partnership turned to Rockhall Funding to utilize FHA’s 223a(7) program for a streamlined refinance providing a 35 year, fixed rate financing.
The loan funded accessibility upgrades that brought the facility into compliance with the ADA. As part of the financing, funds were raised to address many long-term capital replacement issues identified by project management. Loan funds not used to retire existing debt, cover transaction costs and fund repairs were used as the initial deposit to the replacement reserve. Despite the capital expenditures and funding of reserves, the overall debt service for the project went down due to the much lower mortgage interest rate.