|HUD No. 12-090
May 30, 2012
MEMORY CARE ASSISTED LIVING FACILITY OPENS IN LOVELAND, COLORADO WITH ASSISTANCE OF FHA-INSURED MORTGAGE LOAN
DENVER - "Memory Care at Seven Lakes Assisted Living" is now open in Loveland, Colorado. The 25,000 square-foot Alzheimer's - dementia residential assisted living facility's construction was financed by an FHA-insured mortgage loan. The $7.3 million loan was made possible through the Federal Housing Administration's (FHA) Section 232 Mortgage Insurance program.
"In helping to make projects like this possible, FHA is not only improving the community's health care, it is also contributing to the area's financial well-being by creating jobs and supporting local economies," said Acting FHA Commissioner Carol Galante.
By insuring the mortgage loan, FHA enabled Memory Care to obtain lower cost financing, with savings in interest expense over the life of the loan.
The mortgage loan was used to construct the new memory care facility, which contains 28 units and 48 beds (8 private and 40 semi-private). The facility is part of a planned community known as Seven Lakes. Single family housing currently exists in Seven Lakes and the balance of the community will be made up of senior housing, including this facility.
"HUD recognizes how important these facilities that provide specialized health care are to local communities. Often conventional financing is just not available for these types of projects and I am pleased that we were able to participate in approving this mortgage insurance," said Rick M. Garcia, HUD's Rocky Mountain Regional Administrator in Denver.
HUD estimates this construction project created more than 170 full-time jobs and provided an estimated economic stimulus of $15 million to the community. Now that it is completed, it is estimated the project will provide an annual economic benefit of approximately $6.9 million and support more than 50 jobs throughout the community. HUD's estimates are based on results from an economic model used by public and private institutions to examine a variety of economic development issues.
Since 1960 FHA has insured more than 6,000 mortgage loans totaling over $31.5 billion to Residential Care facilities in all 50 states, Puerto Rico and the Virgin Islands. The Section 232 Mortgage Insurance Program provides HUD-insured mortgages made by private lending institutions to finance residential care facilities such as assisted living facilities, nursing homes, intermediate care facilities, and board and care homes.
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.