[pcorder]

Hi gang,

I had in my head that a nursing home would be reportable under the new rules because it would be considered long term housing. But I was just reading Reg C 1003.2(f)(5) and the words “skilled nursing” kept jumping out at me. So for a loan to purchase, refi or home improve a nursing home, where the residents are patients and have round the clock skilled nursing, it would be exempt from reporting, right? Please help…. BAH HMDA! Thanks!

[jholzknecht]

Comment 2(f) – 5. explains the ends and outs on this issue. “For purposes of § 1003.2(f), a property used for both long-term housing and to provide related services, such as assisted living for senior citizens or supportive housing for persons with disabilities, is a dwelling and does not have a non-residential purpose merely because the property is used for both housing and to provide services. However, transitory residences that are used to provide such services are not dwellings. See comment 2(f)-3. Properties that are used to provide medical care, such as skilled nursing, rehabilitation, or long-term medical care, also are not dwellings. If a property that is used for both long-term housing and to provide related services also is used to provide medical care, the property is a dwelling if its primary use is residential. An institution may use any reasonable standard to determine the property’s primary use, such as by square footage, income generated, or number of beds or units allocated for each use. An institution may select the standard to apply on a case-by-case basis.

The key is to have a residential component.

[jholzknecht]

Comment 2(f) – 5. explains the ends and outs on this issue. “For purposes of § 1003.2(f), a property used for both long-term housing and to provide related services, such as assisted living for senior citizens or supportive housing for persons with disabilities, is a dwelling and does not have a non-residential purpose merely because the property is used for both housing and to provide services. However, transitory residences that are used to provide such services are not dwellings. See comment 2(f)-3. Properties that are used to provide medical care, such as skilled nursing, rehabilitation, or long-term medical care, also are not dwellings. If a property that is used for both long-term housing and to provide related services also is used to provide medical care, the property is a dwelling if its primary use is residential. An institution may use any reasonable standard to determine the property’s primary use, such as by square footage, income generated, or number of beds or units allocated for each use. An institution may select the standard to apply on a case-by-case basis.

The key is to have a residential component.

[Author]

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