Goals for the project: What did the client ask CIL to do?

The service provider came to CIL looking for an opportunity to buy out their current leases so they could reduce their rent amount, take advantage of Facilities Consilidation Fund (FCF) financing, and at the end of the 30-year lease period, have the homes donated to them.

At the beginning of the project, it was important to understand what the homes looked like: were they all "new construction", or were some renovations? Would they all qualify for FCF financing? What shape are the homes in? If renovations were required, what would that look like in the COVID era, as the homes are occupied by residents and staff on a daily basis? Once CIL's development team understood all these factors, they were able to dive right in.

Experience: What has been the main challenge and how is CIL overcoming it?

The agency has an option to purchase the homes that they cannot assign to CIL, so they are acquiring each home utilizing a bridge loan for a short period of time until CIL can purchase. CIL's development team is working to minimize the amount of time that the agency has to "hold" each property, which requires close coordination.

The outcomes: Is CIL proud of the result?

At the moment, CIL is in the process of coordinating the acquisition of the properties, using the first two homes as "test cases" to iron out the paperwork and timeline required. Ultimately, closing on these properties, reducing rent and operating costs for the agency, providing upgrades to the homes, and at the end of the day being able to donate the properties is a huge measure of success. The agency is happy and has already added additional homes to the list for next summer!