[Tools & Resources]
All Development Costs to now be reimbursed for projects receiving FCF
Thanks to collaboration between Association of Developmental Disabilities Providers (ADDP) and the Department of Developmental Services (DDS), a new policy has been announced clarifying the treatment of reimbursements for Massachusetts service providers developing community residences.
Effective October 1, 2019, all development costs will be included in the occupancy rate calculation as long as the capital lease company applies for and is awarded a Facilities Consolidation Loan Program (FCF) loan. For capital leases that are not awarded FCF, or do not apply, all costs will be factored in with the exception of the development fee. Prior to these changes, costs such as appraisal fees, construction loan interest, closing costs, legal fees, and development fees were excluded from reimbursement.
CIL has a depth of experience applying for and receiving FCF loans, with 95 homes in our portfolio that have received them. If you have questions about this process, we can help.