Section 2002

Control

Requirements

Control Requirements
Wholly-Owned Condominium Wholly-Owned CondominiumResidential Condominium Property where the Borrower owns 100% of the units.	Complete control to directly or indirectly manage and operate the Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). , through voting rights, consent rights, or ownership, to control all: voting outcomes; and actions taken, including for: Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. termination; Condominium Document Condominium DocumentGoverning documents: for the Condominium and owners’ association’s creation, operation, and management; and including Condominium instruments for Condominium governance, such as declarations, plats, bylaws, rules and regulations, articles of… amendments; assessments and budgets; insurance requirements; and post casualty or condemnation: restoration and repair; and proceeds or award application.
Fractured Condominium or Commercial Condominium	Material control (including the requisite votes in any Person PersonLegal person, including an individual, estate, trust, corporation, partnership, limited liability company, financial institution, joint venture, association, or other organization or entity (whether governmental or private). directly or indirectly governing the Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. ), either individually or with its mortgagee, to: prevent: Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. termination; and any Material Amendment Material AmendmentChange to the Condominium Documents pertaining to: modifying, after a casualty or condemnation, insurance requirements, use of insurance proceeds, or rebuild requirements; altering or restricting the use of the Condominium units, common elements, or other… to the Condominium Documents Condominium DocumentsGoverning documents: for the Condominium and owners’ association’s creation, operation, and management; and including Condominium instruments for Condominium governance, such as declarations, plats, bylaws, rules and regulations, articles of… ; and require, either directly or per the Condominium Documents Condominium DocumentsGoverning documents: for the Condominium and owners’ association’s creation, operation, and management; and including Condominium instruments for Condominium governance, such as declarations, plats, bylaws, rules and regulations, articles of… : Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. repair and restoration, including common elements, for any casualty or condemnation damage equal to 80% or less of either the common elements, or Borrower BorrowerPerson who is the obligor per the Note. -owned Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. units; and for any casualty or condemnation neither repairable nor restorable, timely distribution of insurance or condemnation proceeds to Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. unit owners.

Control Requirements

For a...

To be eligible for Delivery, you must ensure the Borrower has...

Complete control to directly or indirectly manage and operate the Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). , through voting rights, consent rights, or ownership, to control all:

voting outcomes; and
actions taken, including for:
- Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. termination;
- Condominium Document Condominium DocumentGoverning documents: for the Condominium and owners’ association’s creation, operation, and management; and including Condominium instruments for Condominium governance, such as declarations, plats, bylaws, rules and regulations, articles of… amendments;
- assessments and budgets;
- insurance requirements; and
- post casualty or condemnation:
  - restoration and repair; and
  - proceeds or award application.

Fractured Condominium or Commercial Condominium

Material control (including the requisite votes in any Person PersonLegal person, including an individual, estate, trust, corporation, partnership, limited liability company, financial institution, joint venture, association, or other organization or entity (whether governmental or private). directly or indirectly governing the Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. ), either individually or with its mortgagee, to:

prevent:
- Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. termination; and
- any Material Amendment Material AmendmentChange to the Condominium Documents pertaining to: modifying, after a casualty or condemnation, insurance requirements, use of insurance proceeds, or rebuild requirements; altering or restricting the use of the Condominium units, common elements, or other… to the Condominium Documents Condominium DocumentsGoverning documents: for the Condominium and owners’ association’s creation, operation, and management; and including Condominium instruments for Condominium governance, such as declarations, plats, bylaws, rules and regulations, articles of… ; and
require, either directly or per the Condominium Documents Condominium DocumentsGoverning documents: for the Condominium and owners’ association’s creation, operation, and management; and including Condominium instruments for Condominium governance, such as declarations, plats, bylaws, rules and regulations, articles of… :
- Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. repair and restoration, including common elements, for any casualty or condemnation damage equal to 80% or less of either the
  - common elements, or
  - Borrower BorrowerPerson who is the obligor per the Note. -owned Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. units; and
- for any casualty or condemnation neither repairable nor restorable, timely distribution of insurance or condemnation proceeds to Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. unit owners.

Guidance

Condominium Document Review
Topic	You should review the Condominium Documents to evaluate...
Governing Body	Membership composition, appointment, and removal.
Voting	Thresholds for making decisions, amending documents, and terminating the condominium structure.
Association	Responsibilities for collecting fees, managing maintenance tasks, obtaining adequate insurance, and mediating disputes. Requirements and restrictions for operations, physical appearance, common area alterations, unit alterations, and rebuilding.
Assessment Fees	Provisions for establishment, escalation, and special assessments.
Common Areas	Use of shared amenities, ingress/egress, and parking.
Financials	Reasonableness of annual budget, 3 years Condominium CondominiumStatutorily established Property ownership regime where Condominium Documents designate: individual units for separate ownership; and common areas for shared use and joint ownership by the unit owners. income/expense statements, and reserves.
Insurance Proceeds and Condemnation Awards	How funds are held, applied, and disbursed.
Covenant Enforcement	Ability to, and history of, levying fines, collecting interest, and/or placing and foreclosing liens.
Insurance	Coverage for property (e.g., accidents, fire, equipment failure, flood, wind, etc.), liability (personal injury), and director’s and officer’s (e.g., theft, fraud, etc.).