KANSAS CITY, Kan. (April 11, 2006) – An affordable senior housing community in Omaha will be able to better serve residents with growing needs for medical and personal care because of a refinance made today through Lancaster Pollard.
Kountze Memorial, which has served low-income seniors for 24 years, will save $30,000 yearly and pay for a new roof and other upgrades through its $2.1 million refinance. Kountze Memorial is the first Sec. 202 affordable senior living property in Nebraska to refinance under recent Department of Housing and Urban Development changes.
“We want to keep people in their homes longer and out of nursing homes,” Sharon West, administrator, said. “There’s a lot more options that we can do now because of the refinancing, so it’s really been a godsend for us.” The 50-unit property will add a lifeline service and secure its patio areas with proceeds from the transaction, which reduced Kountze Memorial’s interest rate by 2.5 percentage points. The refinance also provides a $200,000 deposit to a replacement reserve and increases yearly contributions to $26,250.
Lancaster Pollard structured the refinancing and underwrote the loan, which is insured by the Department of Housing and Urban Development and fixed at a low interest rate for 35 years. The investment banking and mortgage banking firm is working with more than 100 affordable senior living properties to refinance under recent changes to the Department of Housing and Urban Development’s underwriting criteria.
“Although interest rates are rising, Section 202 properties still have excellent opportunities to refinance at lower rates,” said Bill Wilson, senior vice president of Lancaster Pollard. “Preserving these key properties is critical, and the changes to HUD’s underwriting criteria have been an invaluable resource for seniors and property owners alike.”
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