v3.26.1
Restricted Cash and Equivalents
 3 Months Ended
Mar. 31, 2026
Cash and Cash Equivalents [Abstract]  
Restricted Cash and Equivalents

NOTE 3. Restricted Cash and Equivalents

 

The following table presents the Company’s restricted cash and equivalents and escrow deposits:

 

   March 31,   December 31, 
   2026   2025 
   (amounts in $000’s) 
Escrow with Trustee  $2,188   $2,170 
MIP escrow accounts   972    790 
Other escrow and debt deposits   708    270 
Property tax and insurance escrow   3,592    6,815 
Interest and expense reserve bonds escrow   12,797    12,696 
HUD replacement reserves   12,850    12,205 
Total restricted cash and equivalents  $33,107   $34,946 

 

Escrow with trustee - The Company transfers funds to the trustee for its Series A, B, C and D bonds to cover principal and interest payments prior to the payment date.

 

MIP escrow accounts - The Company is required to make monthly escrow deposits for mortgage insurance premiums on the HUD guaranteed mortgage loans.

 

Other escrow and debt deposits – The Company funds various escrow accounts under certain of its loan agreements, primarily to cover debt service on underlying loans.

 

Property tax and insurance escrow - The Company funds escrows for real estate taxes and insurance under certain of its loan agreements.

 

Interest and expense reserve bonds escrow - The indentures for the series A, B, C, and D Bonds require the funding of a six-month interest reserve as well as an expense reserve. See Note 7 – Bonds, Note Payable and Other Debt.

 

HUD replacement reserves - The Company is required to make monthly payments into an escrow for replacement and improvement of the project assets covered by HUD guaranteed mortgage loans. A portion of the replacement reserves are required to be maintained until the applicable loan is fully paid.