Notice2026-19683
Notice of HUD-Held Healthcare Loan Sale (HLS 2027-1)
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 25, 2026
Issuing agencies
Housing and Urban Development Department
Abstract
HUD is announcing the competitive, sealed bid sale of 11 unsubsidized healthcare mortgage loans, without Federal Housing Administration (FHA) insurance. This sale, referred to as HLS 2027-1, is scheduled to occur on or about November 17, 2026. The sale supports HUD's efforts to maximize recoveries and reduce the cost of holding defaulted assets. This notice describes the general bidding process for the sale, as well as the entities and individuals who are ineligible to bid.
Full Text
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<title>Federal Register, Volume 91 Issue 185 (Friday, September 25, 2026)</title>
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[Federal Register Volume 91, Number 185 (Friday, September 25, 2026)]
[Notices]
[Pages 60976-60978]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19683]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6568-N-07]
Notice of HUD-Held Healthcare Loan Sale (HLS 2027-1)
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 11 healthcare mortgage loans secured by 11
properties.
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SUMMARY: HUD is announcing the competitive, sealed bid sale of 11
unsubsidized healthcare mortgage loans, without Federal Housing
Administration (FHA) insurance. This sale, referred to as HLS 2027-1,
is scheduled to occur on or about November 17, 2026. The sale supports
HUD's efforts to maximize recoveries and reduce the cost of holding
defaulted assets. This notice describes the general bidding process for
the sale, as well as the entities and individuals who are ineligible to
bid.
DATES:
Bidder's Information Package (BIP) Available: On or about October
9, 2026.
Bid Date: On or about November 17, 2026 (bids must be submitted
during specified hours).
Anticipated Award Date: On or before November 20, 2026.
Closing Date: On or about December 9, 2026.
ADDRESSES: Prospective bidders must complete, sign, and submit a
Confidentiality Agreement and a
[[Page 60977]]
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 the Transaction Specialist at 1-
844-709-0763 or <a href="/cdn-cgi/l/email-protection#5a120f1e093b363f291a1c3b363935341b29293f2e093b363f2974393537"><span class="__cf_email__" data-cfemail="5119041502303d34221117303d323e3f102222342502303d34227f323e3c">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: John Lucey, Director, Office of Asset
Sales, U.S. Department of Housing and Urban Development, 451 7th St.
SW, Washington, DC 20410; telephone 202-402-3927 (this is not a toll-
free number), or at <a href="/cdn-cgi/l/email-protection#d49ebbbcbafa83fa98a1b7b1ad94bca1b0fab3bba2"><span class="__cf_email__" data-cfemail="2c66434442027b0260594f49556c445948024b435a">[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 11
unsubsidized, non-performing healthcare mortgage loans (the ``Mortgage
Loans'') in Loan Sale HLS 2027-1. The Mortgage Loans will be sold
without FHA insurance and with HUD servicing released. The offering
includes 11 first-lien mortgage notes secured by 11 healthcare skilled
nursing and assisted living facilities located in nine states.
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 and individuals
are prohibited from participating in the sale, as described in the
Qualification Statement.
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 the bidding platform.
Bidding Process
The BIP provides detailed instructions on bidding procedures for
HLS 2027-1. 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 the bidding platform.
As part of its bid, each bidder must submit a minimum deposit of
the greater of $100,000 or 10 percent of the aggregate price of all
their bids. If a bidder's total bid is less than $100,000, the minimum
deposit shall be not less than 50 percent of the bidder's aggregate
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 or about December 9, 2026.
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 2027-1. 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 2027-1 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
2027-1:
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 the first day of the month of the Bid Date;
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 2027-1;
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
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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, employee, contractor, or subcontractor
of any person or entity that, within the two-year period prior to the
Bid Date, serviced any of the Mortgage Loans or performed other
services for or on behalf of HUD with respect to any of the Mortgage
Loans; and/or
10. Any employee, officer, director or any other person that
provides or will provide services to the prospective bidder with
respect to the Mortgage Loans that, within the two-year period prior to
the Bid Date, serviced any of the Mortgage Loans or performed other
services for or on behalf of HUD with respect to any of the Mortgage
Loans.
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 2027-1.
Freedom of Information Act Requests
HUD reserves the right, in its sole and absolute discretion, to
disclose information regarding HLS 2027-1, 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 2027-1, HUD may be required to disclose
information relating to HLS 2027-1 pursuant to the Freedom of
Information Act and all regulations promulgated thereunder.
Scope of Notice
This notice applies to HLS 2027-1 and does not establish HUD's
policy for the sale of other mortgage loans.
Joseph M. Gormley,
President of the Government National Mortgage Association performing
the delegable duties of the Assistant Secretary for Housing--Federal
Housing Commissioner.
[FR Doc. 2026-19683 Filed 9-24-26; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on September 25, 2026.
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