The Capital Issue

Fall 2009

As we continue to monitor the gradual thaw of the capital markets, we're glad to present the fall edition of The Capital Issue, including a guest article from Bob Vento of QHR and an important piece on endowment accounting co-authored by McGladrey & Pullen's David Andrews. If you have any questions on any of the content, or if you would like to know how Build America Bonds or housing-specific loan products might be used by your organization, please don't hesitate to contact us.

Thomas R. Green, CEO

Build America Bonds Combine with HUD Mortgage Insurance to Provide Exceptional Borrowing Option
10/9/2009

Build America Bonds Combine with HUD Mortgage Insurance to Provide Exceptional Borrowing Option

With each passing month, the financial markets continue to recover from the memorable events of fall 2008. For governmental health care and multifamily housing borrowers there remains an opportunity to take advantage of Federal programs designed to unfreeze the capital markets. The key will be whether borrowers are able to act before these resources expire.

Warning Signs of a Distressed Hospital
10/8/2009

Warning Signs of a Distressed Hospital

The typical hospital’s business model and revenue stream are so markedly different from other businesses, its level of financial distress can be difficult to diagnose. The following early warning signs will help hospital leaders more clearly identify and proactively react to financial distress. While no single metric can accurately identify early-stage distress in all hospitals, the following financial indicators can offer helpful insight into the outlook of a hospital that might be in trouble.

Directly Addressing 5-Star Ratings can Indirectly Protect Access to Capital
10/7/2009

Directly Addressing 5-Star Ratings can Indirectly Protect Access to Capital

In December 2008 the Centers for Medicare & Medicaid Services (CMS) rolled out the Five-Star Nursing Home Quality Rating System, designed to make it easier for residents and their families to compare nursing facilities. Nearly one year later, concerns still remain about the way the ratings are issued, in particular because of the impact ratings can have on the perception of the facility by both potential residents and other interested parties such as investors.

Solutions to Affordable Housing Financing Quandaries
10/6/2009

Solutions to Affordable Housing Financing Quandaries

Government agencies and Government Sponsored Enterprises are continuing to help fill the credit void in the wake of the credit market meltdown, remaining committed to providing liquidity and bringing stability to the industry, even during this volatile market.

New Accounting Rules Create Greater Accountability for Nonprofit Endowments
10/5/2009

New Accounting Rules Create Greater Accountability for Nonprofit Endowments

The winter 2009 Nonprofit Minute outlined major changes The Uniform Prudent Management of Institutional Funds Act (UPMIFA) will have on nonprofit organizations in states where the Act has been implemented. This issue focuses on the Financial Accounting Standards Board (FASB) Staff Position (FSP) 117-1, “Endowments of Not-for-Profit Organizations: Net Asset Classification of Funds Subjected to an Enacted Version of UPMIFA and Enhanced Disclosures for All Endowment Funds,” which provides guidance on classification and disclosure for donor-restricted endowments subject to UPMIFA as well as guidance on disclosures for all endowment funds.