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?