With an overwhelming abundance of EB-5 projects to choose from, spanning from hotels, restaurants, and condos, why are we developing senior care facilities across the southeast? You may be familiar with our Tampa Oaks Senior Living project and our current project underway in North Carolina, which includes the development of four (4) new senior living facilities. These projects have been strategically chosen for development so that our EB-5 investor families can be confident in the security of their investment.
As the American “baby-boomer” generation continues to reach retirement age and beyond, this has created a significant shortage in senior living housing. To correct this shortfall, several government sponsored enterprises such the U.S. Department of Housing and Urban Development (“HUD”), Fannie Mae, Freddie Mac, and the Federal Housing Administration (“FHA”), have incentivized developers to create more senior care facilities throughout the United States.
In an effort to structure safe deals and mitigate risk, we have chosen to develop six (6) senior care facilities thus far in order to take advantage of the government incentive, known as Section 232. This incentive is an FHA loan that provides mortgage insurance for residential care facilities. Our Tampa Oaks Senior Living and North Carolina Senior Living projects are both examples of this type of housing, and therefore we qualify for this statutorily available refinancing. This means that the U.S. Department of Housing and Urban Development (“HUD”) will provide mortgage insurance for 100% of the outstanding debt and FHA, Fannie Mae or Freddie Mac – all public, government sponsored enterprises – are also viable exit options for repayment of EB-5 loans.
According to HUD, Section 232 loans may be used to finance the purchase, refinance, new construction, or substantial rehabilitation of a project, which means that our investors could be repaid at the end of five (5) years through the HUD mortgage insurance program or one of the public government-sponsored enterprises (“GSE’s”) discussed above as an exit to the project. This government incentive overall helps us provide additional exit strategies for EB-5 investors to receive a return of their funds in a timely manner, and explains why we are developing several senior care facilities. For more information about HUD or section 232, click here.