A new PCNA will be required if it has been
more than 10 years from the time of
completion of a PCNA.
Critical repairs, which must be minor in
nature, to be completed prior to closing.
Non-critical repairs, which must be minor in
nature, to be completed within 12 months of
Full escrows for property taxes, all applicable
insurance, and any special assessments are
funded at closing.
A Replacement Reserve account must be
established at closing and is made available
for replacement of depreciable capital items.
If the loan includes repairs or capital
improvements to be completed after closing,
an additional 10% repair escrow must be
funded at closing with cash or a letter of
This is a non-recourse loan. Extended loan term – up to an additional 12 years past original maturity date. Low, fixed interest rates, fully amortizing. Most affirmative and negative loan covenants typically found in conventional loan agreements are eliminated.
Fully assumable, subject to HUD and CMI approval.
Debt service coverage ratio of 1.11 for market rate properties and 1.05 for affordable and/or subsidized projects held by Non-profit owner. No appraisal, market study or environmental reports typically required and minimal documentation is required.
Click here to download a PDF of this program.