required as a result of an updated Physical Condition Assessment (PCA)). If the underwritten value has not been provided and the escrow impound for the Replacement Reserve is waived, the amount should reflect a Replacement Reserve contribution on a per annum basis of $250 per unit for a non-Senior Housing Property and $300 per unit for a Senior Housing Property. 2. Extraordinary Capital Expenditures (ECAPEX): The field must include all items identified as major capital expenditures that “Borrower Actual” were not funded from the Replacement Reserve. This field is not required to be normalized. Include in Extraordinary Capital Expenditures: Items that have been excluded from the repair and maintenance line item, typically considered to be of a An Extraordinary Capital Expenditure is money capital nature and/or subject to amortization or used to purchase, upgrade, improve, or extend depreciation, and that are not anticipated as part of the life of long-term assets. Long-term assets are Capital Expenditures (Replacement Reserve) typically property, infrastructure, or equipment Furniture, Fixtures, and Equipment Reserve Account with a useful life of more than one year. (FF&E) Repair Escrow D. CASH FLOW ANALYSIS Operating Data and Debt Service should reflect the same number of months in the reported financial statement period. If a partial financial statement period of operating data is received from the Borrower, the Lender should always normalize the data to match the number of months in the reporting financial statement period (or request a waiver if the data is insufficient). For a Mortgage Loan other than a Seniors Housing Mortgage Loan or a Structured Transaction: Q1 = 3 months of operating data and 3 months of debt service Q2 = 6 months of operating data and 6 months of debt service Q3 = 9 months of operating data and 9 months of debt service Q4 = 12 months of operating data and 12 months of debt service Annual = 12 months of operating data and 12 months of debt service For a Seniors Housing Mortgage Loan or a Structured Transaction, the number of months of Operating Data and Debt Service must be three months for quarterly reporting periods and twelve months for annual reporting periods. 1. Net Cash Flow after Capital Expenditures (Replacement Reserve): The system automatically calculates Net Cash Flow (NCF) by subtracting Capital Expenditures (Replacement Reserve) from Net Operating Income (NOI). This field cannot be modified and will
required as a result of an updated Physical Condition Assessment (PCA)). If the underwritten value has not been provided and the escrow impound for the Replacement Reserve is waived, the amount should reflect a Replacement Reserve contribution on a per annum basis of $250 per unit for a non-Senior Housing Property and $300 per unit for a Senior Housing Property. 2. Extraordinary Capital Expenditures (ECAPEX): The “Borrower Actual” field must include all items identified as major capital expenditures that were not funded from the Replacement Reserve. This field is not required to be normalized. Include in Extraordinary Capital Expenditures: Items that have been excluded from the repair and maintenance line item, typically considered to be of a capital nature and/or subject to amortization or depreciation, and that are not anticipated as part of Capital Expenditures (Replacement Reserve) An Extraordinary Capital Expenditure is money used to purchase, upgrade, improve, or extend the life of long-term assets. Long-term assets are typically property, infrastructure, or equipment with a useful life of more than one year. Furniture, Fixtures, and Equipment Reserve Account (FF&E) Repair Escrow D. CASH FLOW ANALYSIS Operating Data and Debt Service should reflect the same number of months in the reported financial statement period. If a partial financial statement period of operating data is received from the Borrower, the Lender should always normalize the data to match the number of months in the reporting financial statement period (or request a waiver if the data is insufficient). For a Mortgage Loan other than a Seniors Housing Mortgage Loan or a Structured Transaction: Q1 = 3 months of operating data and 3 months of debt service Q2 = 6 months of operating data and 6 months of debt service Q3 = 9 months of operating data and 9 months of debt service Q4 = 12 months of operating data and 12 months of debt service Annual = 12 months of operating data and 12 months of debt service For a Seniors Housing Mortgage Loan or a Structured Transaction, the number of months of Operating Data and Debt Service must be three months for quarterly reporting periods and twelve months for annual reporting periods. 1. Net Cash Flow after Capital Expenditures (Replacement Reserve): The system automatically calculates Net Cash Flow (NCF) by subtracting Capital Expenditures (Replacement Reserve) from Net Operating Income (NOI). This field cannot be modified and will
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