Section 106

Certificates of Occupancy

Requirements

Certificates of Occupancy
For any...	You must...
Property with construction or rehabilitation work completed within the last 12 months	Ensure all units have a certificate of occupancy. Obtain copies of all certificates of occupancy from the BorrowerBorrowerPerson who is the obligor per the Note. . Retain them in your Servicing FileServicing FileYour file for each Mortgage Loan serviced. .
Other Property	Determine if each unit had a certificate of occupancy at some point. Attempt to obtain copies of them. Retain them in your Servicing FileServicing FileYour file for each Mortgage Loan serviced. .

Guidance

No Certificate of Occupancy
If you cannot obtain...	You should...
Copies of certificates of occupancy for a Property (for example, because of the Property's age, or the records of the jurisdiction where the Property is located)	Exclude the income generated by any units without a certificate of occupancy, but include all expenses (including replacement reserves) for the maintenance of these units. Look for other evidence that certificates of occupancy had been issued.
Copies or other sufficient evidence of a certificate of occupancy	Analyze the risk to 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). if one had never been issued, by considering if: your physical inspection reveals any life safety issues; all units are accessible through normal access routes (and not, for example, through a former janitorial closet); the insurance excludes coverage of a casualty originating from a unit without a certificate of occupancy; and 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 located in a market that exhibits low vacancies and barriers to entry.

No Certificate of Occupancy

If you cannot obtain...

You should...

Copies of certificates of occupancy for a Property (for example, because of the Property's age, or the records of the jurisdiction where the Property is located)

Exclude the income generated by any units without a certificate of occupancy, but include all expenses (including replacement reserves) for the maintenance of these units.
Look for other evidence that certificates of occupancy had been issued.

Copies or other sufficient evidence of a certificate of occupancy

Analyze the risk to 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). if one had never been issued, by considering if:

your physical inspection reveals any life safety issues;
all units are accessible through normal access routes (and not, for example, through a former janitorial closet);
the insurance excludes coverage of a casualty originating from a unit without a certificate of occupancy; and
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 located in a market that exhibits low vacancies and barriers to entry.