Opinions needed.

About 5 years ago, my bank financed the purchase of 4 contiguous homes for a non-profit organization that provides "treatment" homes for severely mentally disabled children. Since the homes are contiguous, they are fenced together to provide a huge playground for the children. The children DO live, full time, in these homes.

Now, the bank is going to refinance this loan. Is this refinance reportable?

5. Properties with service and medical components. 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. See comment 2(f)-3. 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.



I guess it's all in how you interpret the above, and what your determination of the primary use of the property is. Based on my general knowledge of such facilities, i think i'd want to lean toward a primarily medical/rehabilitation use and not report, but it's open to interpretation.