Is lending to skilled nursing facilities that serve>50% medicaid patients considered a CD loan?

If the loan is >$1 million and more than 50% of patients are medicaid, it would qualify with proper documentation.

If less than or = $1 million it would be small business if to a for profit borrower and must be reported as small business subject to those rules. If the borrower is a non- profit and the loan is secured by non- farm non- residential real estate and <=1 million it will be small business.

If you search the CRA forum on nursing or medicaid you will find prior discussions.

What type of documentation would you recommend?

Primarily documentation as to the number of patients that are medicaid.

Do these facilities have to be non-profit or can they be for-profit as long as the medicaid percentage is there?

No requirement for non-profit.

Would this also qualify for HMDA as a multi-dwelling loan?

We have a loan that is over $1 million that loan ops is pushing as a HMDA loan. I know that I can report a multi-family dwelling as a CD loan if it qualifies under the CRA tests (medicaid percentage). Was hoping that this would qualify for the double reporting.

It depends if it qualifies as a dwelling under HMDA.

Generally: "excluded are transitory residences such as hotels, hospitals, and college dormitories—whose occupants have principal residences elsewhere."

(emphasis mine)

Take a look at this too: http://www.bankersonline.com/compliance/guru2007/gurus_comp030507b.html

I can see an examiner arguing skilled nursing is transitory and not HMDA reportable.

You have to be able to prove it is not transitory, ala the assisted living places, where I sometimes wish I was so someone would provide my meals, etc.!

Ok, if it was an assisted living center, over $1 million, would that be reported as HMDA and a CD loan under CRA?