HUD Insured Loans
HUD Insured Loans Financing
Since 1990, Tiffany & Bosco has represented for profit and non-profit owners of multi-housing projects in connection with loans that are insured by the U.S. Department of Housing and Urban Development (“HUD”). The loans were for upscale apartment projects, hospitals, skilled nursing, assisted/independent living facilities, and affordable housing. The HUD loans have been used to build new projects and refinance existing ones. We have closed over 220 HUD insured loan transactions with a total loan amount in excess of $3.1 Billion. HUD insured loans are non-recourse (even during construction), fully amortized and assignable.
Transfer of Physical Assets
HUD must approve the transfer of multi-housing projects that are subject to HUD insured loans. The process requires the submission of an application for transfer of physical assets (“TPA”) to HUD. If not handled properly, TPAs can take a long time – sometimes over a year. However, we have processed many TPAs and have shortened the time period significantly, usually around 70 days following submission of the TPA to HUD.
Violation of Regulatory Agreement
Borrowers of HUD insured loans enter into Regulatory Agreements with HUD. Minor violations of the Regulatory Agreement are usually resolved at the field or regional office. However, serious violations are referred to a Departmental Enforcement Center (“DEC”). DEC can impose penalties for the violations or refer the more serious ones to the U.S. Department of Justice. We have successfully represented borrowers who were referred to DEC by reducing or completely avoiding a penalty. None of our clients or their principals have been referred to the Department of Justice for criminal prosecution.