Key Questions Yes No Has there been a default of the Master Lease? Has the Servicer evaluated other properties within the Master Lease to determine cash flows and the ability to cover the failing project(s)? N/A Is the aggregate DSCR of the properties within the Master Lease below 1.20? N/A If yes, has an action plan been established by the Master Tenant that includes a detailed budget to achieve a minimum DSCR of 1.20? N/A Does any property within the Master Lease have a DSCR below 1.20? N/A If yes, has an action plan been established by the Operator for each specific property that includes a detailed budget to achieve a minimum DSCR of 1.20? N/A Has the Servicer collaborated with the AE and/or Turnaround Team? N/A Has the Borrower been notified of the required decline to Troubled status in the HUD system? N/A <<For each above, provide a narrative discussion regarding the topic here as per “yes” answer instructions provided on the first page of this document.>> Special Focus Facility (SFF) and/or State Inspections It is a mandatory responsibility of a project to notify the AE and the Servicer of their SFF status. However, all Section 232 Program Servicers are to monitor the CMS SFF status list no less than monthly, to determine if any projects in their portfolio have been added to the SFF list or had a status change while on the list. If discovered on the list, the Servicer is to immediately contact the Project and the AE. Notifications to HUD and the Lender/Servicer are required to be submitted within two (2) business days after the date of receipt of notice of a Special Facility Focus (SFF) designation from a state or federal regulatory agency, unless a longer time period is approved by HUD. Failure by the Project to notify HUD and the Servicer of a SFF designation will be deemed a violation of federal regulation 24 CFR 232.1015 and may lead to the involvement of the HUD Departmental Enforcement Center (DEC). Additionally, HUD requires reporting when the Operator receives a notice, report, survey, or other correspondence (regardless of form) from any governmental entity that includes any statement, finding or assertion that:
Key Questions Yes No Has there been a default of the Master Lease? Has the Servicer evaluated other properties within the Master Lease to determine cash flows and the ability to cover the failing project(s)? N/A Is the aggregate DSCR of the properties within the Master Lease below 1.20? N/A If yes, has an action plan been established by the Master Tenant that includes a detailed budget to achieve a minimum DSCR of 1.20? N/A Does any property within the Master Lease have a DSCR below 1.20? N/A If yes, has an action plan been established by the Operator for each specific property that includes a detailed budget to achieve a minimum DSCR of 1.20? N/A Has the Servicer collaborated with the AE and/or Turnaround Team? N/A Has the Borrower been notified of the required decline to Troubled status in the HUD system? N/A <<For each “yes” answer above, provide a narrative discussion regarding the topic here as per instructions provided on the first page of this document.>> Special Focus Facility (SFF) and/or State Inspections It is a mandatory responsibility of a project to notify the AE and the Servicer of their SFF status. However, all Section 232 Program Servicers are to monitor the CMS SFF status list no less than monthly, to determine if any projects in their portfolio have been added to the SFF list or had a status change while on the list. If discovered on the list, the Servicer is to immediately contact the Project and the AE. Notifications to HUD and the Lender/Servicer are required to be submitted within two (2) business days after the date of receipt of notice of a Special Facility Focus (SFF) designation from a state or federal regulatory agency, unless a longer time period is approved by HUD. Failure by the Project to notify HUD and the Servicer of a SFF designation will be deemed a violation of federal regulation 24 CFR 232.1015 and may lead to the involvement of the HUD Departmental Enforcement Center (DEC). Additionally, HUD requires reporting when the Operator receives a notice, report, survey, or other correspondence (regardless of form) from any governmental entity that includes any statement, finding or assertion that: