Housing & Healthcare Finance (HHC Finance), a commercial finance company based in Washington, D.C., closed four Department of Housing and Urban Development (HUD) loans totaling $55.3 million for a portfolio of four supportive living facilities in Illinois.
Two of the facilities serve the 65-and-older market, and the level of care provided at the facilities falls somewhere between skilled nursing and assisted living, Charles Dabich, director of business development at HHC Finance told Skilled Nursing News.
The transaction refinanced the borrowers’ existing bank and partnership debt, and will help support renovations to the facilities.
The Illinois Supportive Living Program was developed as an alternative to nursing home care for low-income seniors and people with disabilities who are covered under Medicaid. The facilities are focused on low-income residents who do not need full medical care, with a single ownership group that outsources operations to a third party, Dabich said.
The care at the facilities, which ranged in size from 128 to 139 beds, is primarily covered for by the state’s Medicaid program, with some small revenue streams from other payor sources, HHC Finance indicated.
The four loans were $7.12 million, $10.16 million, $18.32 million, and $19.72 million. In addition to the two facilities serving seniors, the other two served people with disabilities aged 22 to 64. The mixed age group made the HUD loans unusual, Dabich noted.
“HUD does not do a lot of financing for supportive living facilities,” he said. “HUD is primarily used for skilled nursing on the health care side… Supportive living is just not a common property type for HUD to finance.”
Written by Maggie Flynn