Texas ALF Construction Loans: Financing New Assisted Living Development
Building a new assisted living facility in Texas offers excellent opportunities due to the state's growing senior population and business-friendly environment. With construction costs significantly lower than coastal markets, Texas ALF development can be highly profitable with the right financing.
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Texas ALF Construction Financing Options
1. SBA 504 Construction Loans
| Feature |
Details |
| Maximum Amount |
$5.5 million (CDC portion) |
| Down Payment |
10-15% |
| Interest Rate |
Below market (debenture rate) |
| Term |
10-25 years |
2. HUD 232 Construction
| Feature |
Details |
| Maximum Amount |
No limit (project-based) |
| Loan-to-Cost |
Up to 80% |
| Term |
40 years + construction |
| Non-Recourse |
Yes |
3. Conventional Construction Loans
| Feature |
Details |
| Loan-to-Cost |
65-80% |
| Interest Rate |
Prime + 1-3% |
| Term |
18-36 months |
Texas Construction Cost Breakdown
Regional Cost Variations
| Region |
Land (per acre) |
Hard Costs (per SF) |
60-Bed Project |
| Dallas-Fort Worth |
$400K-1.2M |
$200-280 |
$14-22M |
| Houston |
$350K-1M |
$190-270 |
$13-21M |
| Austin |
$500K-1.5M |
$220-300 |
$16-24M |
| San Antonio |
$250K-700K |
$180-260 |
$12-19M |
| Central Texas |
$150K-400K |
$160-240 |
$10-17M |
Typical Cost Components
| Category |
% of Total |
| Land |
10-18% |
| Hard Costs |
58-68% |
| Soft Costs |
12-18% |
| FF&E |
5-8% |
| Contingency |
5-10% |
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Construction Timeline in Texas
Typical Development Schedule
| Phase |
Duration |
| Pre-Development |
4-8 months |
| Design |
3-6 months |
| Financing |
2-4 months |
| Construction |
10-16 months |
| Lease-Up |
6-12 months |
| Total |
25-46 months |
Texas-Specific Advantages
- Faster permitting than many states
- No state income tax improves returns
- Lower labor costs than coastal markets
- Business-friendly regulations
Related Texas ALF Resources
Disclaimer: This information is for educational purposes only. All financing provided by Jaken Finance Group, subject to approval.