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Long-Term Care Facility Loan Fund
This loan fund assists in making loans to nursing facilities, basic care
facilities, or assisted living facilities for renovation projects throughout
the State.
Qualifying Requirements
Borrower - Loans may be made to nursing facilities, basic care facilities, or assisted
living facilities either licensed or registered in the state of North Dakota.
Use of Proceeds - The proceeds may be used to renovate a nursing facility, basic care
facility, or assisted living facility.
Loan Amount - The maximum amount of a loan and grant may not exceed 90% of the project
costs, with a maximum limit of $1,000,000.
Collateral - All loans under this program shall be secured by a mortgage on the property
and furnishings. In almost all circumstances, BND will require at least
a second mortgage to secure its participation.
Application Process
All applications for loans under this program are made to the State Department
of Human Services. The department may approve the applications of qualified
borrowers whose project the department determines will offer necessary and
appropriate services to persons served under this program. Applications
approved by the department are forwarded to BND for review and approval.
Information required for consideration shall include:
- Application.
- Conditional and firm commitment from the Department of Human Services.
- Preliminary title opinion.
- Agreement to provide services.
- Corporate opinion and resolution confirming the project.
- Analysis of the project.
- Insurance policy for the project.
- Any other data or documentation as deemed necessary.
Operating Contract
A borrower shall execute a contract with the State to operate the facility in
accordance with the standards prescribed for in the licensing of the facility by
the Department of Human Services. This contract will also provide that if the
use of the facility is discontinued or diverted to purposes other than those
provided in the loan application without the express consent of the State, the
full amount of the loan becomes due and payable.
Interest Rate
The interest rate established for this program has been set at 2% for loans
relating to facilities.
Repayment Terms
The term of a loan shall not exceed 30 years.
For more information on this program or other Bank of North Dakota programs,
contact:
Bank of North Dakota
700 East Main Ave
Bismarck ND 58502-5509
(701) 328-5676
1-800-472-2166 ext. 5676
TDD (Telephone Device for the Deaf) 1-800-643-3916
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