commitment requiring the lease payment be revised to meet or exceed this If the minimum.” lease payment does not need to increase, add the following language: current lease “The payment is sufficient. The recommended annual lease payment also provides the operator with an acceptable profit margin.”>> Responsibilities <<Provide a description of the responsibilities of the lessor and lessee under the terms of the lease with regard to the following: payment of real estate taxes, maintenance of building, capital improvements, replacement of equipment, property insurance, etc.>> Master Lease Program Guidance: Handbook 4232.1, Section II Production, Chapter 13. It is the lender’s responsibility to read the handbook chapter and provide HUD with a full set of documents for review of the proposed master lease or alternative master lease structure. Key Questions Yes No Are three or more projects (or two projects with an aggregate total mortgage loan amount greater than $15 million) being submitted to HUD that are under common control or have the same ownership? Have projects under common control or with the same owernshipapplied for mortgage insurance within the 18-months OR will projects under past common control or with the same owernship apply for mortgage insurance or TPA within the 18 months? next N/A Is the parent of the operator the same for all of these projects? N/A If you answered to all three questions, a master lease or master lease alternative is required. “yes’ Yes No Is a new master lease proposed for the subject project? Will the subject project be joined to an existing HUD master lease? Do the borrower principals currently participate in any other HUD master leases? Does the parent of the operator currently participate in any other HUD master leases? <<Provide a narrative describing the terms and conditions of the master lease proposed payments to and from the master tenant, , lease agreements between borrower, master tenant and subtenants, the flow of funds from the subtenants to the master tenant and the borrower (including the AR lender if applicable), and any waivers or requests for modification to standard requirements. .
commitment requiring the lease payment be revised to meet or exceed this minimum.” If the lease payment does not need to increase, add the following language: “The current lease payment is sufficient. The recommended annual lease payment also provides the operator with an acceptable profit margin.”>> Responsibilities <<Provide a description of the responsibilities of the lessor and lessee under the terms of the lease with regard to the following: payment of real estate taxes, maintenance of building, capital improvements, replacement of equipment, property insurance, etc.>> Master Lease Program Guidance: Handbook 4232.1, Section II Production, Chapter 13. It is the lender’s responsibility to read the handbook chapter and provide HUD with a full set of documents for review of the proposed master lease or alternative master lease structure. Key Questions Yes No Are three or more projects (or two projects with an aggregate total mortgage loan amount greater than $15 million) being submitted to HUD that are under common control or have the same ownership? Have projects under common control or with the same owernshipapplied for mortgage insurance within the past 18-months OR will projects under common control or with the same owernship apply for mortgage insurance or TPA within the next 18 months? N/A Is the parent of the operator the same for all of these projects? N/A If you answered “yes’ to all three questions, a master lease or master lease alternative is required. Yes No Is a new master lease proposed for the subject project? Will the subject project be joined to an existing HUD master lease? Do the borrower principals currently participate in any other HUD master leases? Does the parent of the operator currently participate in any other HUD master leases? <<Provide a narrative describing the terms and conditions of the master lease proposed payments to and from the master tenant, , lease agreements between borrower, master tenant and subtenants, the flow of funds from the subtenants to the master tenant and the borrower (including the AR lender if applicable), and any waivers or requests for modification to standard requirements. .
9007_orcf-Redline.docx