110.04

Underwritten NCF

Requirements

When calculating Underwritten NCFUnderwritten NCFNet Cash Flow as adjusted by the Lender per Part II, Chapter 2: Valuation and Income, Section 203: Income Analysis and the applicable products and features in Part III. :

  • do not include any income derived from the Solar PV SystemSolar PV SystemA renewable energy system located on the Property that converts sunlight into electricity and/or a battery storage system containing lithium ion batteries or equivalent technology capable of storing electricity received from the electric grid or a renewable energy system and delivering stored…, except for tenant utility reimbursement;
  • any utility reimbursement income must
    • not exceed the trailing 12-month period, and
    • consider any decrease from the lower utility expense;
  • utility expense must be supported by the trailing 12-month operating history; and
  • include all additional Solar PV SystemSolar PV SystemA renewable energy system located on the Property that converts sunlight into electricity and/or a battery storage system containing lithium ion batteries or equivalent technology capable of storing electricity received from the electric grid or a renewable energy system and delivering stored… operating expenses such as:
    • operating and maintenance contract fees;
    • fixed utility fees;
    • incremental real estate taxes;
    • insurance coverage; and
    • Replacement ReservesReplacement ReservesCustodial Account the Borrower funds during the Mortgage Loan term for Replacements. for equipment replacement and/or system removal and reinstallation upon roof replacement.