A Continuing Care Retirement Community (CCRC) is a facility that combines independent living, assisted living and skilled nursing homes to meet the needs of residents at each life stage. A resident may enter the facility in independent living, but later move to assisted living according to their changing needs. HUD 232 and HUD 232/223(f) loans can finance CCRCs, but only if no more than 25% of all units are independent living units. To learn more about HUD 232 loans, fill out the form below to speak to a HUD/FHA loan expert.

The phrase ‘continuum of care’ actually refers to the services offered and not necessarily the facility itself. However, for seniors, continuum of care facilities usually offer independent living, assisted living, and skilled nursing care in one location. Because of this, a continuum of care facility functions like an adult daycare center crossed with a nursing home.

To become a resident at the facility, a person pays an up-front, buy-in fee. As they age and require more care, their monthly fees may increase. Throughout their time at the facility, care can be adjusted according to their changing needs.

If a resident contracts a short term health issue, they can often be treated on-site without needing to be hospitalized. After they recover, they return to their residential unit. These facilities are ideal for spouses — if one becomes ill, then the other can stay close as their partner receives care.

In theory, an individual could first stay in an independent living unit. Then, as their needs change over time, they can transfer to an assisted living unit. Finally, they could move to a skilled nursing care unit for their remaining time.

Continuing Care Retirement Communities (CCRCs) offer a combination of independent living, assisted living, and skilled nursing home services. Independent living units typically offer a variety of activities to help residents stay engaged, but do not offer healthcare services. Assisted living facilities offer medical care and emphasize the independence of residents. Skilled nursing homes are designed to offer around the clock care and monitoring, and are typically intended for elderly patients with complex medical conditions. Memory care facilities are designed specifically for residents who suffer from Alzheimer's and dementia, and may emphasize targeted therapies to assist residents with speech problems and other behavioral issues. Continuum-of-care facilities have several different kinds of living areas, each intended for seniors with different needs.

Sources:

• HUD 232 Loans - Continuing Care Retirement Communities
• CMBS Loans for Assisted Living Facilities and Nursing Homes

The benefits of living in a Continuing Care Retirement Community (CCRC) are numerous. Residents of CCRCs enjoy a wide range of services and amenities, including independent living, assisted living, and skilled nursing care. Residents can also benefit from social activities, recreational activities, and access to medical care. Additionally, CCRCs often provide transportation services, housekeeping services, and other amenities that make life easier for residents. With HUD 232 and HUD 232/223(f) loans, CCRCs can be financed, but only if no more than 25% of all units are independent living units.

The costs associated with living in a Continuing Care Retirement Community (CCRC) vary depending on the type of care needed and the services offered. Generally, CCRCs offer a range of services from independent living to assisted living and skilled nursing care. Residents typically pay an entrance fee and a monthly fee that covers the cost of living in the community. The entrance fee is usually a one-time fee that covers the cost of the unit and the services offered. The monthly fee covers the cost of living in the community, such as meals, housekeeping, and other services. Some CCRCs may also offer additional services for an additional fee. To learn more about the costs associated with living in a CCRC, please contact your local HUD/FHA loan expert for more information.

Continuing Care Retirement Communities (CCRCs) can be financed through HUD 232 loans and HUD 232/223(f) loans. These loans typically offer fixed-rate, long-term financing with amortization periods of up to 40 years. Additionally, HUD 232 loans can offer flexible loan terms, including deferred payments, interest-only payments, and balloon payments. To learn more about HUD 232 loan terms and qualifications, visit our terms and qualifications page.

In addition to HUD 232 loans, conventional loans from banks, credit unions, and other private lenders are another loan option to consider when financing senior housing properties. These loans generally have higher interest rates, shorter amortization periods, and more rigid credit score requirements, but can close faster and offer more flexible loan terms.