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FAQs

• Why nursing homes, HUD properties and veterans homes?
  Nursing home, Medicaid & HUD residents meet the definition of a low-to-moderate income group and can qualify for government subsidies for Care and Housing. Therefore, any loan or investment that goes to benefit or support this group is considered as qualified CRA credit and allows banks to support a segment of society that it might not otherwise touch. Further, these facilities are known to have problems in areas that the Senior Crimestoppers program directly addresses.
• How does this benefit a bank?
  Often it is difficult for banks to find reasonable, low-risk, community focused opportunities to meet their CRA loan or investment requirements. Many times CRA qualified types of loans and investments are considered risky at best. CRA Partners provides a bank with an outlet to meet both loan and investment test requirements, as required by law. Further, CRA Partners is structured in such a way that the bank has very low credit risk. The transaction is secured 100% by the collateral chosen by the bank, which constitutes the source of repayment at contract maturity. The yield on the bank’s loans and investments is based on the yield paid on the collateral security, less 1.5% retained by CRA Partners to support its programs. Also, the funds provided by the bank are used in the primary assessment area(s) where the bank must have credit or greater area permitted by CRA regulation. Besides all of this, a bank has no work, administrative burden or overhead associated with participation.
• What does the nursing home or senior housing facility receive?
  The facilities also win, perhaps more than anyone else. A facility sponsored by the SHCPF receives the Senior Crimestoppers program absolutely free of charge with no strings attached during the loan/investment period. Benefits such as reduced risk exposure, lower cost of liability insurance, reduction in crime incidents experienced, lower staff turnover and associated costs, enhanced staff morale, abatement of litigation events and hard dollar cost savings are all brought to the facility through implementation of the Senior Crimestoppers program.
• How long is the commitment period?
  The commitment period for all loans and investments is 7 years. At the conclusion of this time period, a participating sponsor may ask for and receive redemption of the loan or investment, or may elect to continue participating in SHCPF activities. If a bank chooses to participate in a grant, the commitment period is 5 years.
• What yield does a sponsor receive?
  First, they receive the effective annual yield of the bond purchased, less a portion retained by the Foundation. In addition, some banks use the relationship with the sponsored nursing home to offer special banking packages to the management, board, staff, residents and family members.
• What is the Foundation’s geographic scope?
  CRA Partners serves every U.S. state. This allows all banks to sponsor nursing homes.