Current through Register Vol. 46, No. 19, March 20, 2024
For-profit and nonprofit sponsors are eligible to apply for
assistance under this program based on the following program guidelines;
however, prior to submission of the loan application, a service provider must
receive approval of a service plan to benefit the Medicaid waiver-eligible
individuals who reside in the project. The service provider may apply for the
loan fund; however, the service provider does not have to be the applicant for
the loan fund. If the service provider is not the loan applicant, a memorandum
of understanding must exist between the loan applicant and the service provider
which shows an obligation on behalf of the service provider to deliver services
to the Medicaid waiver-eligible individuals residing in the project and which
shows that the loan applicant is obligated to offer housing to the Medicaid
waiver-eligible individuals who need the services provided by the service
provider.
(1) Projects eligible for
assistance must meet the following criteria:
a. Written approval must be obtained from the
department for the proposed project prior to application for loan
funds.
b. In order to be approved
by the department, the project must demonstrate all of the following
components:
(1) The project serves one of the
following Medicaid waiver-eligible populations:
1. Individuals who are currently underserved
in community settings, including individuals who
are physically aggressive or have behaviors that are difficult
to manage or individuals who meet the
PMIC level of care; or
2. Individuals who are currently placed out
of state by the department; or
3.
Individuals who are currently receiving care in an Iowa-licensed health care
facility.
(2) A plan to
provide each Medicaid waiver-eligible individual with crisis stabilization
services to ensure that the individual's behavioral issues are appropriately
addressed by the provider
(3)
Policies and procedures that prohibit discharge of the Medicaid waiver-eligible
individual from the waiver services provided by the project provider unless an
alternative placement that is acceptable to the individual or the individual's
guardian is identified.
c. In order to be approved by the department
for application for funding for development of infrastructure in which to
provide supportive services under this chapter, a project shall include all of
the following components:
(1) Provision of
services to Medicaid waiver-eligible individuals who meet the PMIC level of
care.
(2) Policies and procedures
that prohibit discharge of the Medicaid waiver-eligible individual from the
waiver services provided by the project provider unless an alternative
placement that is acceptable to the individual or the individual's guardian is
identified.
(2) The following types of activities are
eligible for assistance:
a. Acquisition and
rehabilitation.
b. New
construction.
c. Such other similar
activities as may be determined by the authority to fall within the guidelines
and purposes established for this program.
(3) Assistance will be provided upon the
following terms and conditions:
a. Generally,
the minimum loan amount is $50,000, and the maximum loan amount is $500,000.
The maximum loan term and amortization period are each 30 years.
b. The debt service ratio must be at least
1.25:1 for the authority's first mortgage, as calculated by the authority. In
addition, the loan-to-value ratio of the project, as calculated by the
authority, will be considered. Notwithstanding the above, the authority may, in
its sole discretion, accept a lower debt service ratio based on the final
underwriting of the project.
c.
Interest rates will be set by the authority, in its sole discretion.
d. Loans shall be secured by a first
mortgage, to the extent possible. Construction financing may be awarded to
projects.
e. Recipients of
assistance must agree to observe several covenants and restrictions all in
accordance with such loan and mortgage documents as may be required by the
authority under this program.
f.
The recipient must provide adequate evidence that its title in the real estate
on which the project is to be located is a marketable title pursuant to Iowa
Land Title Examination Standards, or other applicable law. Adequate evidence of
marketable title is demonstrated by either (1) a title opinion of an attorney
authorized to practice law in Iowa showing that the loan recipient has
marketable title, or (2) a title guaranty certificate issued by the title
guaranty division of the Iowa finance authority showing the recipient as the
guaranteed.
g. Recipients must
execute such documents and instruments and must provide such information,
certificates and other items as determined necessary by the authority, in its
sole discretion, in connection with any assistance.
(4) Loan fees.
a. Loan fees are as follows:
(1) Application fee - 0.3 percent of loan
amount.
(2) Commitment fee
(construction period) - I.O percent of loan amount.
(3) Commitment fee (permanent loan) - 2.0
percent of loan amount.
(4)
Inspection fee (construction loan) - 0.5 percent of loan
amoimt.
b. The authority
may, in limited cases, reduce such fees if necessary in connection with
assistance provided under this program. Such decision will be made in the sole
discretion of the authority.
