503.03

Acceptable Levels of Seismic Risk

Guidance

The SEL percentage 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). and the building stability assessment will determine whether the seismic risk is acceptable.

Requirements

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). seismic risk is acceptable if all income-producing ImprovementsImprovementsBuildings, structures, improvements, and alterations, including the multifamily housing dwellings, now or hereafter constructed or placed on the Property, including all fixtures (as defined in the UCC). or any non-income producing ImprovementsImprovementsBuildings, structures, improvements, and alterations, including the multifamily housing dwellings, now or hereafter constructed or placed on the Property, including all fixtures (as defined in the UCC). that support amenities

  • comply with this Section 503.03,
  • have an SEL of 20% or less, and
  • meet the current building stability requirements of ASTMASTMAmerican Society for Testing Materials E2026.

A 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. is ineligible for purchase if it is secured by a PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). that has any ImprovementsImprovementsBuildings, structures, improvements, and alterations, including the multifamily housing dwellings, now or hereafter constructed or placed on the Property, including all fixtures (as defined in the UCC). with an SEL greater than 40%.

Guidance

Your analysis should include:

  • a Level 1 SRA, including Appendix X4 (ASTMASTMAmerican Society for Testing Materials E2557);
  • your analysis of the seismic issues and recommendation, describing in detail
    • the severity and pervasiveness of the conditions driving the SEL and stability issues,
    • the risks presented to building stability, building damageability, site stability, and life safety, and
    • the recommended retrofit or remediation requirements;
  • a retrofit letter or the Borrower’sBorrower’sPerson who is the obligor per the Note. retrofit plan, timetable, and cost estimate;
  • Form 4099.C; and
  • a minimum of 6 PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). photos, including
    • photos of those areas significant to the seismic calculation or stability issue, and
    • elevation views of any ImprovementsImprovementsBuildings, structures, improvements, and alterations, including the multifamily housing dwellings, now or hereafter constructed or placed on the Property, including all fixtures (as defined in the UCC). having an SEL over 20% or a stability issue.