Section 103
Requirements
You must ensure that a Dedicated Student Housing PropertyDedicated Student Housing PropertyMultifamily rental Property in which 80% or more of the units are leased to undergraduate or graduate students. :
- caters to a campus with at least 10,000 students, the majority of whom are full-time students;
- is
- located within 2 miles of a campus boundary line, as determined by the local municipality, or
- near a college/university-sponsored transportation line; and
- has operated for at least 1 full school year (i.e., August/September through April/May).
Guidance
The Dedicated Student Housing PropertyDedicated Student Housing PropertyMultifamily rental Property in which 80% or more of the units are leased to undergraduate or graduate students. should have stabilized occupancy no later than the month preceding the start of the first semester/quarter of the second full school year.
Requirements
Fannie Mae will not purchase any Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. secured by a Dedicated Student Housing PropertyDedicated Student Housing PropertyMultifamily rental Property in which 80% or more of the units are leased to undergraduate or graduate students. that offers food service.
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Requirements
You must ensure that at least 80% of the units in a Dedicated Student Housing PropertyDedicated Student Housing PropertyMultifamily rental Property in which 80% or more of the units are leased to undergraduate or graduate students. are leased for a minimum term of 12 months.
Guidance
Each student lease agreement should have
- a parental guarantee of the rent, or
- student tenants with sufficient income or other documented financial means to pay the rent.
Requirements
You must ensure that a Dedicated Student Housing PropertyDedicated Student Housing PropertyMultifamily rental Property in which 80% or more of the units are leased to undergraduate or graduate students. located on college/university land meets the following:
- the BorrowerBorrowerPerson who is the obligor per the Note. has control over all economic decisions affecting 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). (such as financing, leasing, and management);
- the 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.
- has at least 5 years of operating experience with Dedicated Student HousingDedicated Student HousingMultifamily rental Property in which 80% or more of the units are leased to undergraduate or graduate students. , and
- operates at least 1 other Dedicated Student Housing PropertyDedicated Student Housing PropertyMultifamily rental Property in which 80% or more of the units are leased to undergraduate or graduate students. located on college/university land; and
- any Ground LeaseGround LeaseContract for the rental of land, usually on a long term basis. complies with Part II, Chapter 1: Attributes and Characteristics, Section 104: Ground Leased Properties.
Requirements
Your underwriting must include the following:
- name of the college/university and its current total enrollment;
- current enrollment percentages of full-time graduate and undergraduate students;
- location of 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). relative to the campus;
- whether 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 part of the college/university’s housing referral program;
- details of the Property’sProperty’sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). amenity package;
- whether 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 convenient to a college/university-sponsored transportation line;
- detailed description of the related rental housing market, including
- the amount of on-campus rental housing space occupied or available, and
- any future on- or off-campus rental housing planned or under construction;
- percentage of the Property’sProperty’sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). units pre-leased for the semester/quarter;
- percentage of the Property’sProperty’sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). tenants who are students;
- percentage of the Property’sProperty’sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). leases that have a term of less than 12-months;
- whether 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 subject to a Ground LeaseGround LeaseContract for the rental of land, usually on a long term basis. or master lease and, if so, the structure and terms of the lease; and
- whether parental guaranties are required for leases at 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). .