| Topic |
You should review the Shared Use Documents to evaluate... |
| Ownership and Control |
- if the BorrowerBorrowerPerson who is the obligor per the Note.
owns all ImprovementsImprovementsBuildings, structures, improvements, and alterations, including the multifamily housing dwellings, now or hereafter constructed or placed on the Property, including all fixtures (as defined in the UCC).
and the underlying land;
- if Essential ElementsEssential ElementsA Shared Use Property’s amenities, common areas or infrastructure:
impacting or essential to the:
operation,
use,
value and marketability,
leasing,
refinancing, and/or
zoning or legal compliance; and
examples of Essential Elements may include:
parking,
… not located on the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the
fee simple or Leasehold interest,
Improvements, and
personal property (per the Uniform Commercial Code).
exist, and if ownership is:
- directly or indirectly by an AffiliateAffiliateWhen referring to an affiliate of a Lender, any other Person or entity that Controls, is Controlled by, or is under common Control with, the Lender.
When referring to an affiliate of a Borrower or Key Principal:
any Person that owns any direct ownership interest in Borrower or Key… of the BorrowerBorrowerPerson who is the obligor per the Note.
or Key PrincipalKey PrincipalPerson who
controls and/or manages the Borrower or the Property,
is critical to the successful operation and management of the Borrower and the Property, and/or
may be required to provide a Guaranty.
;
- by a separate association or governing body;
- by another community owner or an adjacent property owner; or
- shared by the community owners; and
- how association and Essential ElementsEssential ElementsA Shared Use Property’s amenities, common areas or infrastructure:
impacting or essential to the:
operation,
use,
value and marketability,
leasing,
refinancing, and/or
zoning or legal compliance; and
examples of Essential Elements may include:
parking,
… decisions are made by any
- developer,
- declarant,
- association,
- community owner, or
- other governing body.
|
| Responsibilities and Enforcement |
how an association or governing body:
- collects fees and assessments;
- maintains Essential ElementsEssential ElementsA Shared Use Property’s amenities, common areas or infrastructure:
impacting or essential to the:
operation,
use,
value and marketability,
leasing,
refinancing, and/or
zoning or legal compliance; and
examples of Essential Elements may include:
parking,
…;
- obtains insurance;
- mediates disputes; and
- enforces covenants, including
- levying fines or interest, or
- pursuing liens or foreclosure.
|
| Fees |
the assessment fee structure, including
- escalation provisions,
- special assessments, and
- if assessments should be escrowed.
|
| Budget |
the association’s current
- annual budget,
- income/expense statements, and
- reserve accounts.
|
| Mandates |
how the association dictates:
- operations;
- physical appearance;
- insurance claim proceeds;
- other restrictions, including limitations or modifications for using the Essential ElementsEssential ElementsA Shared Use Property’s amenities, common areas or infrastructure:
impacting or essential to the:
operation,
use,
value and marketability,
leasing,
refinancing, and/or
zoning or legal compliance; and
examples of Essential Elements may include:
parking,
…; and
- if the cost and maintenance of the Essential ElementsEssential ElementsA Shared Use Property’s amenities, common areas or infrastructure:
impacting or essential to the:
operation,
use,
value and marketability,
leasing,
refinancing, and/or
zoning or legal compliance; and
examples of Essential Elements may include:
parking,
… located on the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the
fee simple or Leasehold interest,
Improvements, and
personal property (per the Uniform Commercial Code).
are not overly burdensome.
|
| Insurance |
the association’s coverage for:
- property, including if the Essential ElementsEssential ElementsA Shared Use Property’s amenities, common areas or infrastructure:
impacting or essential to the:
operation,
use,
value and marketability,
leasing,
refinancing, and/or
zoning or legal compliance; and
examples of Essential Elements may include:
parking,
… not located on the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the
fee simple or Leasehold interest,
Improvements, and
personal property (per the Uniform Commercial Code).
must be rebuilt or repaired after any casualty or condemnation;
- liability; and
- director’s and officer’s.
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