Expanded Scope of Services offered to a Limited Number of Clients
- We are a boutique firm specializing in FHA 242 loan insurance for hospitals. We take a limited number of clients and service them with senior banking professionals. We assist our partner, PHP, in the underwriting and servicing of Hospital loans they originate.
- Our services go beyond structuring your loan, filing an application for mortgage insurance with FHA and securing funding for the loan. As your mortgage banker/project financial manager, we become an integral part of your project team. We welcome the opportunity to become involved with a project at its earliest stages, and will work with you and other team members to identify potential problems that may affect the financing and resolve them before they impact your project’s timing.
- We have the expertise to, and routinely coordinate the efforts of the architect, contractor, feasibility and environmental consultants. We will educate them with respect to the unique requirements of the FHA 242 program, assign tasks and monitor their progress to make certain we all arrive at the closing at the same time and fully prepared.
- After construction is complete we assist our clients in any and all matters concerning their FHA insured loan and their relationship with the FHA staff for the life of the loan. We routinely monitor title, update FHA previous participation clearances, negotiate covenant exceptions and handle special requests. You are not left on your own to deal with HUD.
Services Prior to Initial Loan Endorsement
- Consult with and coordinate the work of Hospital’s staff, financial advisors, consultants, auditors and architects to develop a comprehensive understanding of the Hospital and its objectives.
- Prepare RFPs for the Architect and Construction Manager, if not already retained, and assist in the negotiation of contract terms to assure compliance with HUD requirements.
- Assist in the preparation, submission and processing of all approvals and amendments required for the CON if required.
- Assist the Hospital and its counsel in reviewing loan terms, resolutions, indentures and other legal documents in connection with the proposed transaction and existing debt documents.
- Prepare analyses of the various debt placement options available to fund the anticipated HUD insured loan.
- Complete and submit HUD’s Preliminary Review Package.
- Plan and assist the Hospital in the preparation for the Pre-Application Meeting with HUD.
- Consult with the Hospital’s feasibility consultant regarding the scope and key assumptions of the required study.
- Prepare and file an application for HUD mortgage insurance.
- Negotiate loan security and all loan covenants on your behalf in the HUD loan documents.
- Work with Hospital’s attorneys on required closing documents.
- Coordinate all parties for loan closing.
Services After Initial Loan Endorsement
- Gavin and LaVigne, Inc. is one of the only firms active in the Section 242 program whose senior bankers stay with you following loan closing. The banker who originates your loan and understands your project will assist you in servicing the construction and permanent mortgages.
- Our primary objective during the construction phase is to ensure that the project progresses smoothly. Toward that end, we work with the project team to fund the construction manager’s requisitions in a timely manner, to see that change orders are reviewed and approved promptly, and that the loan is closed-out as quickly as possible after substantial completion.
Services Provided During Construction
- Assemble and check each monthly requisition submitted to HUD for mortgage insurance.
- Maintain a running budget by project budget line item.
- Obtain title insurance updates and coordinate monthly funding of advances.
- Attend all project meetings to identify issues affecting the project or its financing.
- Correspond with HUD, as necessary, to obtain approvals or address issues.
- Review, submit and process change orders received from the construction manager.
- Process line item change orders as required to meet shortfalls in budget line items.
- Monitor payment of insurance and mortgage insurance premiums.
- Negotiate all requests for changes in the FHA documents and loan requirements.
- Assume full responsibility for coordinating all party’s efforts to finally endorse the loan.
Services Provided Following Construction
- Monitor title and HUD previous participation clearance of board members and key administrative personnel.
- Monitor payment of insurance, special municipal assessments and mortgage insurance premium.
- Correspond with HUD, as required or as requested by the Hospital.
- Represent the Hospital in all requests to HUD for covenant exceptions, collateral releases, MIP rebates, etc.