507.03

Regulatory Compliance Report

Requirements

You must obtain a Regulatory Compliance Report for all licensed Seniors HousingSeniors HousingMultifamily residential rental property with any combination of Independent Living, Assisted Living, Alzheimer’s/Dementia Care, or Skilled Nursing units. PropertiesPropertiesMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). .  The report must include the following information as of the date of the report:

  • identity of all government authorities with jurisdiction over the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). and each authority’s definition of the level of care permitted at the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). ;
  • summary and copies of all government surveys conducted during the past 3 years, including
    • a summary and analysis of all deficiencies identified in the surveys,
    • the severity of these deficiencies, and
    • the correction plans for all deficiencies, whether corrected or outstanding;
  • summary and analysis of all enforcement actions during the past 3 years resulting from a state survey inspection (such as a probationary license or ban on admissions), together with a summary and analysis of any remedial plan of action;
  • photocopies of all regulatory permits, licenses, and certificates;
  • state staffing requirements;
  • summary of the status of any federal, state, or local proposed regulations (or amendments to existing regulations) that could affect the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). or any aspect of the Seniors HousingSeniors HousingMultifamily residential rental property with any combination of Independent Living, Assisted Living, Alzheimer’s/Dementia Care, or Skilled Nursing units. industry;
  • summary of the regulatory and licensing procedures required to change PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). ownership, any service provider, the authority to operate, or the management of the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). , and this summary must
    • identify the changes that require advance notice and/or prior approval from the relevant government authority, and
    • describe any advance notice requirements, such as timing, required recipients, and required notice content;
  • if the BorrowerBorrowerPerson who is the obligor per the Note. or Seniors Housing Operator participates in
    • the state’s Medicaid waiver program, or
    • another third-party subsidy program,
    • an assessment of the risk to the Property’sProperty’sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). operations if the program is discontinued;
  • identification and analysis of any special insurance requirements of government authorities (such as workers compensation insurance or medical director professional liability insurance);
  • copies of the sources and references used to complete this report; and
  • overall assessment of regulatory matters affecting the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). , including an analysis and detailed recommendations for any other matters material to the ownership, operation, or management of the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). .