Elderly Developments in Relation to HUD 221(d)(4) Loans
Elderly developments, also known as independent living facilities, are properties designed for the elderly that may not contain services associated with retirement centers such as central kitchens and dining areas, and other non-shelter spaces. With HUD 221(d)(4) financed projects, no non-shelter services is a mandatory condition for occupancy. Common use areas in non-shelter spaces (such as a clubhouse) are allowed to have modest equipment in a common use kitchen. In general, this means that HUD 221(d)(4) properties cannot finance assisted living facilities or skilled nursing homes. Instead, they can only finance independent living facilities.
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