603.01B

Collateral; Tenant-Occupied and Affiliate-Owned Homes

Requirements

The collateral for an MH CommunityMH CommunityResidential real estate development with lots on which manufactured homes are located, together with amenities, utility services, landscaping, roads, and other infrastructure. 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. consists of

  • the MH Community'sMH Community'sResidential real estate development with lots on which manufactured homes are located, together with amenities, utility services, landscaping, roads, and other infrastructure. land and infrastructure,
  • the rents for the MH SitesMH SitesDeveloped lot within an MH Community on which a Manufactured Home can be located. , and
  • any other BorrowerBorrowerPerson who is the obligor per the Note. -owned property used for the MH CommunityMH CommunityResidential real estate development with lots on which manufactured homes are located, together with amenities, utility services, landscaping, roads, and other infrastructure. .

The percentage of tenant-occupied Manufactured HomesManufactured HomesFactory-built home complying with the Manufactured Home HUD Code. must not exceed 35%.  If the percentage of tenant-occupied Manufactured HomesManufactured HomesFactory-built home complying with the Manufactured Home HUD Code. is greater than 25%, then:

  • the Borrower’sBorrower’sPerson who is the obligor per the Note. business plan must reflect the conversion of tenant-occupied Manufactured HomesManufactured HomesFactory-built home complying with the Manufactured Home HUD Code. to owner-occupied over time; and
  • ongoing business related to the sale, financing, or rental of a Manufactured HomeManufactured HomeFactory-built home complying with the Manufactured Home HUD Code. 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 performed 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….

If any Affiliate-Owned Manufactured HomesAffiliate-Owned Manufactured HomesManufactured Home or park model home located on an MH Site that is owned by an Affiliate of the Borrower. are leased to tenants 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 either the BorrowerBorrowerPerson who is the obligor per the Note. or a 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. , then:

  • The MH SiteMH SiteDeveloped lot within an MH Community on which a Manufactured Home can be located. lease must be at a market rate rent.
  • If the tenant’s rent payment includes both the rent for the Affiliate-Owned Manufactured HomeAffiliate-Owned Manufactured HomeManufactured Home or park model home located on an MH Site that is owned by an Affiliate of the Borrower. and the rent for the MH SiteMH SiteDeveloped lot within an MH Community on which a Manufactured Home can be located. , then either:
    • the check must be payable to and deposited by the BorrowerBorrowerPerson who is the obligor per the Note. , which must pay all required P&IP&IPrincipal and interest , and escrows before remitting the rent payment to the 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…; or
    • you must consider whether it is appropriate to require a lockbox arrangement with the BorrowerBorrowerPerson who is the obligor per the Note. and the 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…
      • into which all rent checks for the Manufactured HomesManufactured HomesFactory-built home complying with the Manufactured Home HUD Code. and MH SitesMH SitesDeveloped lot within an MH Community on which a Manufactured Home can be located. must be deposited, and
      • from which you can control the disbursement of funds for P&IP&IPrincipal and interest , required escrows, and the Manufactured HomeManufactured HomeFactory-built home complying with the Manufactured Home HUD Code. rentals, with the remainder disbursed to the BorrowerBorrowerPerson who is the obligor per the Note. .