Guide Update 21-03
:  Legal Non-Conforming Use
Effective:
Retired: 04/15/22
Legal Non-Conforming Use (Redline).pdf

HIGHLIGHTS

Effective for Mortgage Loans Committed on or after March 29, 2021, the legal non-conforming use requirements were clarified.  

 

Primary Change

If the Property's use and characteristics are a legal non-conforming use under applicable zoning and land use laws and regulations:

  • Analyze the impact on the Mortgage Loan if the Borrower is not allowed to rebuild the Property as is under current law.
  • The Improvements must be able to be reconstructed per current zoning requirements to a level that would support a minimum 1.00 amortizing DSCR in case of
    • partial condemnation, or
    • full or partial casualty.

 

Questions

Please contact Zachary Gordon at (202) 752-1498, or [email protected], with any questions.