The LLC has purchased a condo (1-4 family) for employees to use when they are in town. They do not reside there permanently. Is this HMDA reportable?

I would not report this as the use is transient housing, in lieu of putting employees up in hotels.

Kathleen thanks for your prompt response. Is there a specific area of the regulation that speaks about transient housing? I would like to have something to base my decision on to show examiners.

Thanks!

Not Kathleen, but check out Reg. C's commentary to 1003.2 if you're looking for a citation. Specifically, it reads:

2. Exclusions. Recreational vehicles such as boats or campers are not dwellings for purposes of HMDA. Also excluded are transitory residences such as hotels, hospitals, and college dormitories, whose occupants have principal residences elsewhere.

For your scenario, the key phrase is "...whose occupants have principal residences elsewhere" (in case your examiners try to say, 'but this is a condominium, not a hotel').