603.04

Flood Zone

603.04A

Rising Water

Requirements

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. located in a flood zone with rising water (e.g., flood water that quickly dissipates and flood zone A or AE) you must ensure the BorrowerBorrowerPerson who is the obligor per the Note.  notifies all HomeownersHomeownersFor an MH Community, a tenant of the Borrower who pays ground rent to the owner for use and occupancy of the MH Site and for use of the MH Community’s utilities and amenities. and all tenants of BorrowerBorrowerPerson who is the obligor per the Note. -owned or Affiliate-Owned HomesAffiliate-Owned HomesManufactured Home or park model home located on an MH Site that is owned by an Affiliate of the Borrower. occupying an MH SiteMH SiteDeveloped lot within an MH Community on which a Manufactured Home can be located. located in the flood zone before the Mortgage Loan Origination DateMortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower. .

For Manufactured Homes located in a rising water flood zone...

If you

 
  • do not know the base flood elevation for the flood zone (e.g., flood zone A), or
  • know that the living floor levels are below the base flood elevation

Then:

 

  • you must calculate the Underwritten DSCRUnderwritten DSCRRatio of Underwritten Net Cash Flow to the annual debt service for a Mortgage Loan amount based on a level debt service payment with the applicable amortization, and calculated per Part II, Chapter 2: Valuation and Income, Section 203: Income Analysis, as adjusted for the applicable products and… excluding the site rent for Manufactured HomesManufactured HomesFactory-built home complying with the Manufactured Home HUD Code. with living floor levels within the flood zone; and
  • if the resulting Underwritten DSCRUnderwritten DSCRRatio of Underwritten Net Cash Flow to the annual debt service for a Mortgage Loan amount based on a level debt service payment with the applicable amortization, and calculated per Part II, Chapter 2: Valuation and Income, Section 203: Income Analysis, as adjusted for the applicable products and… decreases to more than 10 basis points below the minimum TierTierTier 1, Tier 2, Tier 3, or Tier 4 per the Multifamily Underwriting Standards (Form 4660). 2 standard, you cannot underwrite the site rent for those Manufactured HomesManufactured HomesFactory-built home complying with the Manufactured Home HUD Code. .
603.04B

Moving Water

Requirements

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. located in a flood zone with the potential for flooding due to moving water (e.g., typically in flood zone A and AE and located next to a stream, river, etc.), you must ensure:

  • your underwriting assumes that MH SitesMH SitesDeveloped lot within an MH Community on which a Manufactured Home can be located. located in the flood zone are considered non-income producing MH SitesMH SitesDeveloped lot within an MH Community on which a Manufactured Home can be located. ; and
  • the BorrowerBorrowerPerson who is the obligor per the Note. notifies all HomeownersHomeownersFor an MH Community, a tenant of the Borrower who pays ground rent to the owner for use and occupancy of the MH Site and for use of the MH Community’s utilities and amenities. and all tenants of BorrowerBorrowerPerson who is the obligor per the Note. -owned or Affiliate-Owned HomesAffiliate-Owned HomesManufactured Home or park model home located on an MH Site that is owned by an Affiliate of the Borrower. occupying an MH SiteMH SiteDeveloped lot within an MH Community on which a Manufactured Home can be located. located in the flood zone before the Mortgage Loan Origination DateMortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower. .