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#1481813 - 12/16/10 07:30 PM Is this a CDL ?
Tennismom Offline
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Tennismom
Joined: Jan 2004
Posts: 773
Construction loan greater than $1 million to build a medical building/facility for a private medical practice. The building is being constructed in a low-income census tract In addition, 41% of the population in the tract is below poverty level. For the zip code area, 43% of the population is below the poverty level. The medical practice will continue to operate a facility in an Upper Income census tract, which is 11 miles away from the new medical building. Medicare/Medicaid represents 21% of current payor mix at the Upper Income facility. The majority of permanent jobs created as a result of the opening of the new facility will be professional, therefore not likely to employ those living in the immediate area.

In reality, the loan was not “designed for the express purpose of revitalizing or stabilizing the low income area” nor was it “designed for the express purpose of providing community services (health care facility) for low or moderate income individuals.” It just so happens that the borrower wanted to expand their business, found a property in a low-income area, is building the health center and when opened will make services assessable to residents living in the immediate area and beyond. It serves residents of the area and stabilizes the area – but was not “designed for the express purpose” of revitalizing or stabilizing or providing community srvices to LMI individuals. Is this a CDL?

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CRA
#1483834 - 12/22/10 12:48 PM Re: Is this a CDL ? Tennismom
Tennismom Offline
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Tennismom
Joined: Jan 2004
Posts: 773
Anyone????

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#1483887 - 12/22/10 02:10 PM Re: Is this a CDL ? Tennismom
Kelsey D Offline
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Joined: Aug 2006
Posts: 516
Ohio
In my similar experiences, yes.
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#1484456 - 12/23/10 02:02 AM Re: Is this a CDL ? Kelsey D
Bullseye Offline
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Bullseye
Joined: Jan 2004
Posts: 968
I agree, yes. New construction in a low income area probably in desparate need of revitalization has always gotten us CDL credit when over $1 million.

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#1484462 - 12/23/10 03:50 AM Re: Is this a CDL ? Bullseye
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,292
Based upon past experience such a loan should qualify for CD credit. Make sure you write it up and discuss the location, the income levels, and that medical services will be provided to residents of the area.
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#1484471 - 12/23/10 10:51 AM Re: Is this a CDL ? Kathleen O. Blanchard
Tennismom Offline
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Tennismom
Joined: Jan 2004
Posts: 773
As usual, thanks for everyone's guidance. Happy Holidays.

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#1485039 - 12/23/10 09:33 PM Re: Is this a CDL ? Tennismom
bubs63 Offline
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bubs63
Joined: May 2003
Posts: 665
Highland Park IL
Make sure you spell out what services and how they will benefit LMI. A medical office in a LMI tract will not get you credit unless they have special set asides for LMI. If the services are open to all then you need to show how it benefits LMI. OR prove how it stabalized the area.
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