603.01C

MH Community

Requirements

An eligible MH CommunityMH CommunityResidential real estate development with lots on which manufactured homes are located, together with amenities, utility services, landscaping, roads, and other infrastructure. must:

  • have a minimum of 50 MH SitesMH SitesDeveloped lot within an MH Community on which a Manufactured Home can be located. ;
  • consist of contiguous parcels or, if 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. is made up of Non-Contiguous ParcelsNon-Contiguous ParcelsMultiple parcels of land securing a Mortgage Loan that do not share common boundaries or that are separated by dedicated or private streets that are major arterials. :
    • all parcels must be located within the same MSAMSAGeographic delineation for a metropolitan area determined by the U.S. Census Bureau. ; and
    • each separate parcel (individually), and all Non-Contiguous ParcelsNon-Contiguous ParcelsMultiple parcels of land securing a Mortgage Loan that do not share common boundaries or that are separated by dedicated or private streets that are major arterials.  (together), must comply with the GuideGuideMultifamily Selling and Servicing Guide controlling all Lender and Servicer requirements unless a Lender Contract specifies otherwise. ; and
  • achieve at least a Level 3 Quality Rating per the Manufactured Housing Community Quality Rating Standards table in Part III, Chapter 6: Manufactured Housing Communities, Section 603.02: MH Community Score.

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. must be served by either

  • public underground utilities, or
  • private sewage treatment plants, septic systems, and private water wells which are:
    • common for the market;
    • owned by the BorrowerBorrowerPerson who is the obligor per the Note. or 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…; and
    • in compliance with all applicable government requirements.

Guidance

The 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. may be secured by either an Age-Restricted MH CommunityAge-Restricted MH CommunityMH Community that limits residents to those who are over a particular age (e.g., persons who are age 62 or older, or at least 80% of the Manufactured Homes occupied by at least 1 person who is age 55 or older). or an All-Age MH CommunityAll-Age MH CommunityMH Community that accepts residents of any age. .

You should consider the following:

  • 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. that is more than 25 years old, does the BorrowerBorrowerPerson who is the obligor per the Note. have a plan for placing new Manufactured HomesManufactured HomesFactory-built home complying with the Manufactured Home HUD Code. in 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. as MH SitesMH SitesDeveloped lot within an MH Community on which a Manufactured Home can be located. with older Manufactured HomesManufactured HomesFactory-built home complying with the Manufactured Home HUD Code. are vacated?
  • Are the landscaping and entrance signage high quality and well maintained?
  • 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. served by a private sewage treatment plant, septic system, or a private water well, then:
    • Address the availability and cost of obtaining a backup source for water if 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. has a private water well.
    • Ensure that the operator of the facility, including its employees and contractors, meet all applicable government requirements to perform ongoing operation and maintenance.
    • If the operator is an employee of the BorrowerBorrowerPerson who is the obligor per the Note. , identify a local, qualified vendor that could be retained if substitute services are needed.
    • Exercise reasonable due diligence, including contacting municipal agencies, to confirm that
      • 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. connection to a municipal system has not been mandated, and
      • no mandate is expected to occur during the term of the 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. .
    • If hookup is imminent, determine if an escrow for the cost is appropriate.