Multifamily



Freddie Mac Loan Number: __________________

Property Name: ____________________________

MANUFACTURED HOUSING RESIDENT-OWNED COMMUNITY ANALYSIS

(Revised 6-29-2018)

Prepared by [Name of Preparer] of [Seller/Servicer] on [Date].

Re: Property Address: (“Property”)

Borrower: (“Borrower”)

For any Property that is a Manufactured Housing Resident-Owned Community (“MHROC”), Seller and/or Seller’s counsel must deliver a completed copy of this analysis, including the requested deliverables, on or before the delivery of the preliminary underwriting package. Any capitalized terms used but not defined in this analysis will have the meanings given to such terms in the Multifamily Seller/Servicer Guide.

A. MHROC Organizational Structure

1. Please provide the date that the Property became a resident-owned community and describe the conversion process (e.g., resident-initiated purchase under applicable statute).

2. Please provide the Borrower entity type (e.g., California not-for-profit corporation).

3. Please describe any shareholders’/owners’ rights under the Borrower organizational documents that the Lender should be made aware of (e.g., shareholders that have the right to purchase Home Sites).

4. Please describe the Borrower’s board structure and its decision-making powers over Property operations.

B. MHROC Owners and Shareholder Activity

1. Please describe the current ownership of the MHROC:

• Percentage of shares/interests owned by resident-shareholders: _____

• Percentage of shares/interests owned by Borrower affiliates: _____

• Percentage of shares/interests owned by third party investors: _____

• Percentage of shares/interest owned by any other parties: _____

• Percentage of unsold shares/interests: ____

2. Please confirm whether renters, third party investors or other non-residents can own shares or interests in the MHROC, and if so, under what circumstances.

3. Please confirm whether a single resident can own multiple shares or interests in the MHROC and if so, under what circumstances.

4. Does the MHROC provide residents or other parties financing to purchase shares in the MHROC? If yes, please provide the following information:

• How many shares have been financed and at what prices?

• Describe the terms of the financing (origination date, maturity date, interest rate, original principal balance, outstanding principal balance, any defaults, etc.)

• Describe the borrowers (e.g., residents, Borrower affiliates, or investors).

• Confirm whether the MHROC intends to continue to finance the purchase of shares or interests in the MHROC, and if so, under what terms and conditions.

C. MHROC Home Ownership

If the Property contains any manufactured homes owned by Borrower, a Borrower Affiliate or a non-resident investor, please provide the following information:

• How many homes are owned by such parties? Please include the number of homes owned by each such party and the identity of the Borrower affiliate and investor, if applicable.

• Are the homes vacant and intended for sale?

• Are the homes rented to tenants? If yes, please describe the rent being charged for the Home Site and the manufactured home.

• Are these tenants subject to one or multiple leases?

• Are the tenants shareholders?

• Can the tenants become shareholders?

• Can the homes owned by Borrower be transferred to its affiliate?

D. Manufactured Housing Resident-Owned Community Management

1. Is the property self-managed or managed by a third-party management company?

2. What is the recapture process for abandoned homes? What party performs the recapture and what party takes title to the homes?

Required MHROC Deliverables

Copies of the following documents must be attached to this analysis or separately delivered to Lender:

|1. |Current financial statements for any one owner that holds 20 percent or more of the MHROC's shares. If an owner of 20 |

| |percent or more is a corporation, partnership or other legal entity, the Seller must deliver financial statements for |

| |each officer, general partner or trust beneficiary, including sponsors and beneficiaries that hold unsold shares. |

| |Sponsor financial statements must be certified or audited.  |

|2. |Maintenance fee delinquency report for the previous 12 months showing the number of Home Sites delinquent for each month|

| |and the corresponding dollar value  |

|3. |Analysis of the sponsor's current cash flow from unsold shares (rent roll detailing rent, maintenance for each unit, and|

| |debt service, if applicable)  |

|4. |Analysis of the sponsor's ability to support negative cash flow from unsold shares, if applicable |

|5. |Analysis of pro forma Income and Expense Statements showing the economic results if the Property were operated as a |

| |rental and as a cooperative  |

|6. |Analysis of the estimated value of the Property as a rental project |

|7. |Analysis of maintenance costs compared to market rents for each Home Site type |

|8. |Complete tax summary for the Property, including tax bills for individual Home Sites (if applicable) and an explanation |

| |of how property taxes are paid |

|9. |Property Rules and Regulations |

|10. |MHROC’s business plan |

|11. |Analysis of the share purchases in the MHROC, including: |

| |- A list of shares sold within the past 12 months, including any that have been sold and resold, the sale dates and |

| |prices of the shares sold, and the applicable Home Site numbers and Home Site types (e.g., single-wide). |

| |- If sales for the last 12 months do not include all Home Site types, provide information on prior sales that includes |

| |all Home Site types. |

| |- Confirm whether there is a waitlist to purchase shares in the MHROC |

| |- Information on any defaults in the purchase of shares (e.g., defaults in financing arrangements through the MHROC or |

| |other lenders) |

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