402.01B

Selecting Units

Requirements

To determine the minimum number of units to inspect, you must:

  • use the Physical Property Inspection table; and
  • increase the number by 25% if some units are not accessible.
Physical Property Inspection
For Properties with... You must inspect at least...
5 - 9 units all available units.
10 - 100 units

the greater of

 

  • 5 units or
  • 10% of all units.
101 - 300 units 10% of all units.
301 - 900 units 40 units.
901+ units 50 units.

When choosing which units to inspect, you must:

  • randomly select floors and units;
  • include:
    • all unit types and as many different floors as possible;
    • units from all buildings;
    • all units vacant for more than 90 days, unless 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). is a Near Stabilized PropertyNear Stabilized PropertyNewly constructed or recently rehabilitated Property, with all construction or rehabilitation complete, which is expected to achieve Stabilized Residential Occupancy and the applicable required Underwritten Debt Service Coverage Ratio within 120 days after the Mortgage Loan Origination Date. ;
    • all down units (i.e., units that cannot currently be rented in the normal course of business); and
    • any additional units you deem appropriate based on
      • PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). type,
      • other factors, or
      • the results of your initial inspection.