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HUD FHA 232 Transactions FAQ Infographic

LSG FHA 232 Eligible Properties Infographic

What properties are eligible?

Section 232 provides construction loans for assisted living facilities, skilled nursing, and intermediate and memory care properties meeting the following requirements:

  • Must provide continuous care
  • Must offer three meals per day
  • Facility must be licensed by appropriate government entity
  • Non-resident day care not to exceed 20% of gross area and 20% of gross income
  • May include up to 25% non-licensed independent living units
  • 20 bed minimum
  • Operating leases to qualified facility operators are permissible, subject to HUD approval
  • Major movable equipment, day-care facilities, and fire safety equipment may be financed
  • If a state has a Certificate of Need program, a CON must be obtained prior to filing for Pre-Application

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