Notice2025-17438
Notice of HUD-Held Healthcare Loan Sale (HLS 2026-1)
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 11, 2025
Issuing agencies
Housing and Urban Development Department
Abstract
HUD is announcing the competitive, sealed bid sale of eight unsubsidized healthcare mortgage loans, without Federal Housing Administration (FHA) insurance. This sale, referred to as HLS 2026-1, is scheduled to occur on or about October 22, 2025. This notice also describes generally the bidding process for the sale and certain persons who are ineligible to bid.
Full Text
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<title>Federal Register, Volume 90 Issue 174 (Thursday, September 11, 2025)</title>
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[Federal Register Volume 90, Number 174 (Thursday, September 11, 2025)]
[Notices]
[Pages 44081-44082]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-17438]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6568-N-01]
Notice of HUD-Held Healthcare Loan Sale (HLS 2026-1)
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, U.S. Department of Housing and Urban Development (HUD).
ACTION: Notice of sale of eight (8) healthcare mortgage loans secured
by 8 properties.
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SUMMARY: HUD is announcing the competitive, sealed bid sale of eight
unsubsidized healthcare mortgage loans, without Federal Housing
Administration (FHA) insurance. This sale, referred to as HLS 2026-1,
is scheduled to occur on or about October 22, 2025. This notice also
describes generally the bidding process for the sale and certain
persons who are ineligible to bid.
DATES:
Bidder's Information Package (BIP) Available: On or about September
23, 2025.
Bid Date: October 22, 2025 (bids must be submitted during specified
hours).
Anticipated Award Date: On or before October 27, 2025.
Closing Date: November 13, 2025.
ADDRESSES: Prospective bidders must complete, sign, and submit a
Confidentiality Agreement and a Qualification Statement that meet HUD's
requirements. These documents will be accessible via Mission Capital
Advisors' bidding platform at <a href="http://market.missioncap.com">market.missioncap.com</a>, where participants
can also register and submit all required documentation electronically.
Questions about the bidder qualification process may be sent to:
Transaction Specialist at 1-844-709-0763 or email
<a href="/cdn-cgi/l/email-protection#3a726f7e695b565f497a7c5b565955547b49495f4e695b565f4914595557"><span class="__cf_email__" data-cfemail="fbb3aebfa89a979e88bbbd9a97989495ba88889e8fa89a979e88d5989496">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: John Lucey, Director, Office of Asset
Sales, U.S. Department of Housing and Urban Development, 451 Seventh
Street SW, Washington, DC 20410-8000; telephone 202-708-2625, extension
3927 (this is not a toll-free number), or at <a href="/cdn-cgi/l/email-protection#741e1b1c1a5a035a180117110d341c01105a131b02"><span class="__cf_email__" data-cfemail="f892979096d68fd6948d9b9d81b8908d9cd69f978e">[email protected]</span></a>. HUD
welcomes and is prepared to receive calls from individuals who are deaf
or hard of hearing, as well as individuals with speech or communication
disabilities. To learn more about how to make an accessible telephone
call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION: HUD is announcing its intention to sell
eight (8) unsubsidized, non-performing healthcare mortgage loans (the
``Mortgage Loans'') in Loan Sale HLS 2026-1. The offering includes
eight (8) first-lien mortgage notes, secured by skilled nursing and
assisted living facilities located across Missouri, Connecticut, Maine,
Minnesota, and Illinois. The Mortgage Loans will be sold without FHA
insurance and with HUD servicing released. Qualified bidders will have
the opportunity to submit competitive, sealed bids for the Mortgage
Loans. For bidding purposes, HUD will stratify the loans into pools,
grouping them by characteristics such as loan performance, property
type, geographic location, and lien position. Pools may contain single
or multiple loans. Bidders may submit offers on one or more pools.
Bidder Eligibility
Eligibility requirements are detailed in the Qualification
Statement, which outlines HUD's restrictions on bidding based on prior
involvement with the Mortgage Loans. Certain entities or individuals
may be ineligible to participate.
The full loan listing and additional sale details are included in
the Bidder's Information Package (BIP), available to qualified bidders
upon submission of an acceptable Confidentiality Agreement and
Qualification Statement via <a href="http://market.missioncap.com">market.missioncap.com</a>.
Bidding Process
The BIP provides detailed instructions on bidding procedures for
HLS 2026-1. It will also include a standardized, non-negotiable Loan
Sale Agreement that governs the terms of the sale. For access to the
BIP and to register for the sale, qualified bidders must submit an
executed Confidentiality Agreement and a completed Qualification
Statement via Mission Capital Advisors' platform:
<a href="http://market.missioncap.com">market.missioncap.com</a>.
As part of its bid, each bidder must submit a minimum deposit of
the greater of One Hundred Thousand Dollars ($100,000) or ten percent
(10%) of the aggregate bid prices for all of such bidder's bids. If a
bidder's total bid is less than One Hundred Thousand Dollars
($100,000), the minimum deposit shall be not less than fifty percent
(50%) of the bidder's aggregate
[[Page 44082]]
bid. HUD will evaluate all bids and select the successful bid(s) in its
sole and absolute discretion. For any winning bidder, the bid deposit
becomes non-refundable and will be credited toward the final purchase
price. Any deposit amount exceeding the purchase price will be
refunded. Deposits submitted by unsuccessful bidders will be returned
after notification of the winning bid(s). Closings are expected to
occur on November 13, 2025.
The Loan Sale Agreement, included in the BIP, sets forth additional
terms and conditions of the sale. To maintain a fair and competitive
auction process, neither the bidding procedures nor the Loan Sale
Agreement are subject to negotiation.
Due Diligence Review
The BIP describes the due diligence process for reviewing loan
files in HLS 2026-1. Qualified bidders will be able to access loan
information electronically. Further information on performing a due
diligence review of the Mortgage Loans is provided in the BIP.
Mortgage Loan Sale Policy
HUD reserves the right to add Mortgage Loans to or delete Mortgage
Loans from HLS 2026-1 at any time prior to the award date. HUD also
reserves the right to reject bids, in whole or in part, without
prejudice against HUD's right to include the Mortgage Loans in a later
sale. The Mortgage Loans will not be withdrawn after the award date
except as is specifically provided for in the Loan Sale Agreement.
This is a sale of unsubsidized mortgage loans, pursuant to Section
204(a) of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act of 1997, (12
U.S.C. 1715z-11a(a)).
Mortgage Loan Sale Procedure
HUD selected a competitive auction as the method to sell the
Mortgage Loans. This method of sale optimizes HUD's return on the sale
of these Mortgage Loans, affords the greatest opportunity for all
qualified bidders to bid on the Mortgage Loans, and provides the most
efficient vehicle for HUD to dispose of the Mortgage Loans.
Bidder Eligibility
To bid in the sale, a prospective bidder must complete, execute,
and submit both a Confidentiality Agreement and a Qualification
Statement acceptable to HUD. The following individuals and entities are
among those INELIGIBLE to bid on the Mortgage Loans being sold in HLS
2026-1:
1. A mortgagor or healthcare operator, including its principals,
affiliates, family members, and assigns, with respect to one or more of
the Mortgage Loans being offered in the Loan Sale, or an Active
Shareholder (as such term is defined in the Qualification Statement);
2. With respect to any other HUD multifamily and/or healthcare
mortgage loan not offered in the Loan Sale, any mortgagor or healthcare
operator, including any Related Party (as such term is defined in the
Qualification Statement) of either, that has failed to file financial
statements or is otherwise in default under such mortgage loan or is in
violation or noncompliance of any regulatory or business agreements
with HUD and that fails to cure such default or violation by no later
than October 1, 2025;
3. Any individual or entity that is debarred, suspended, or
excluded from doing business with HUD pursuant to Title 2 of the Code
of Federal Regulations, Part 2424;
4. Any contractor, subcontractor and/or consultant or advisor
(including any agent, employee, partner, director, principal or
affiliate of any of the foregoing) who performed services for, or on
behalf of, HUD in connection with HLS 2026-1;
5. Any employee of HUD, a member of such employee's family, or an
entity owned or controlled by any such employee or member of such an
employee's family;
6. Any individual or entity that uses the services, directly or
indirectly, of any person or entity ineligible under provisions (3)
through (5) above to assist in preparing its bid on any Mortgage Loan;
7. An FHA-approved mortgagee, including any principals, affiliates,
or assigns thereof, that has received FHA insurance benefits for one or
more of the Mortgage Loans being offered in the Loan Sale;
8. An FHA-approved mortgagee and/or loan servicer, including any
principals, affiliates, or assigns thereof, that originated one or more
of the Mortgage Loans being offered in the Loan Sale if the Mortgage
Loan defaulted within two years of origination and resulted in the
payment of an FHA insurance claim;
9. Any affiliate, principal or employee of any person or entity
that, within the two-year period prior to October 1, 2025, serviced any
Mortgage Loan or performed other services for or on behalf of HUD in
regard to any Mortgage Loan;
10. Any contractor or subcontractor working for or on behalf of HUD
that had access to information concerning any Mortgage Loan or provided
services to any person or entity which, within the two-year period
prior to October 1, 2025, had access to information with respect to any
Mortgage Loan; and/or
11. Any employee, officer, director or any other person that
provides or will provide services to the prospective bidder with
respect to the Mortgage Loans during any warranty period established
for the Loan Sale, that serviced the Mortgage Loans or performed other
services for or on behalf of HUD or within the two-year period prior to
October 1, 2025, provided services to any person or entity which
serviced, performed services or otherwise had access to information
with respect to any Mortgage Loan for or on behalf of HUD.
Other entities/individuals not described herein may also be
restricted from bidding on the Mortgage Loans, as fully detailed in the
Qualification Statement.
The Qualification Statement provides further details pertaining to
eligibility requirements. Prospective bidders should carefully review
the Qualification Statement to determine whether they are eligible to
submit bids on the Mortgage Loans in HLS 2026-1.
Freedom of Information Act Requests
HUD reserves the right, in its sole and absolute discretion, to
disclose information regarding HLS 2026-1, including, but not limited
to, the identity of any successful bidder and its bid price or bid
percentage for the Mortgage Loans, upon the closing of the sale of the
Mortgage Loans. Even if HUD elects not to publicly disclose any
information relating to HLS 2026-1, HUD may be required to disclose
information relating to HLS 2026-1 pursuant to the Freedom of
Information Act and all regulations promulgated thereunder.
Scope of Notice
This notice applies to HLS 2026-1 and does not establish HUD's
policy for the sale of other mortgage loans.
Frank Cassidy,
Principal Deputy Assistant Secretary for Housing.
[FR Doc. 2025-17438 Filed 9-10-25; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on September 11, 2025.
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