MAP Section 223(f) for Assisted Living Conversion Program (ALCP)

The MAP Section 223(f) Program has special rules to facilitate the refinancing of HUD properties that have previously received Assisted Living Conversion Program (ALCP) grants. HPCC closed the first 223(f)/ALCP loan in the country.  

To be eligible for this program, properties must:
  • Mortgagors who provide services must form a separate entity for the provision of the services
  • Physical Condition/REAC scores must exceed 60
Dependent upon the number of assisted living units in place, a three month debt service/operating reserve will be considered. This is intended to alleviate any financial costs associated with transitioning the existing residents out of the facility in order to re-lease the units to independent elderly tenants.