Guide Update 22-06: Zoning and Legally Non-Conforming Status
Effective for Mortgage Loans Committed on or after April 15, 2022, zoning and legally non-conforming status requirements were updated.
- You must confirm the zoning and land use laws and regulations permit the applicable
- multifamily housing, or
- manufactured housing community.
- If affected Improvements cannot, in case of full or partial casualty or condemnation, be rebuilt to the pre-casualty condition, you must:
- Confirm the Improvements can be reconstructed to support a minimum 1.00 amortizing DSCR if non-conformance would result in a loss of 20% or more of the Property's units.
- Require the Borrower to execute Modifications to Multifamily Loan and Security Agreement (Legal Non-Conforming Status) (Form 6275).
Please contact Daniel Maisel at (202) 752-3155, or [email protected], with any questions.