We have a loan I could use some input on. It is for construction with permanent financing of a 2,504 square feet
home containing 6 bedrooms and 2.5 bath rooms with a kitchen, dining area, great room, and laundry. Our borrower will be leasing the property to another company that will be operating a residental care facility (adult foster care). I am attempting to get more information regarding the details of the operation but assuming it operates as an assisted living facility I think it is HMDA reportable.

If so the question then becomes do we report it as 1-4 family or multifamily. It would be sold as a SFR if it were not being used as a care facility but since there could be 6 different unrelated people living in the home would 1-4 family be correct?

This is one of those "round pegs in a square hole" issues that HMDA creates. Whatever you decide, document why and "slam the door". Don't leave it open for debate. If an examiner disagrees with you, you can go back to your documentation and support your logic rather than "We didn't really know so we went with this."

Now to your issue: If you truly believe it meets the definition of a dwelling, then I would call it a "multifamily structure" (code 3). However, this could be transitory housing (see the commentary to the definition of a "dwelling"). I'm not certain from your description and thought it might be worth a second look.

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.

Thanks David. I will be asking for more information from the loan officer regarding the planned usage. It was unclear from our original discussion whether it would operate like a nursing home or more like a retirement home. It may well fall under transitory housing.

I would look into the type of residency, do these residents have a home elsewhere and are here temporarily? Also, I would not consider this multifamily regardless of the answer to the first question. Multifamily are individual separate units with separate entrances, not just separate bedrooms for unrelated people.

I googled 'are nursing homes HMDA reportable' and got a bunch of hits. Here's one of numerous threads that might shed some like on your topic once you answer the question of transitory.

Well, yes, TR, but that will depend if this is a nursing home or a full time residential place. It may be these folks actual home. Where my condo is in PA there are actually a few units that have adults living in them in a group setting. It is their home and some have lived there for years.

So it goes back to the question: what is this?

We have had many loan requests for group homes for mentally challenged individuals/recovering addicts. Researching each has resulted in some being on our LAR due to the fact the individuals reside in these group homes forever. There's no hope they can learn life skills in order to be independent. We report groups homes when the individuals will live there until they pass. Group homes where they are teaching individuals in order to eventually be on their own are not reported as we consider those as transient housing.

I agree with JSD and Kaybee. We determine whether this will be the occupants primary residence, or transitory housing. If it will be their primary residence then we would report this as HMDA.

Goodness me, I didn't disagree with Kathleen or anyone else!
I just offered the OP a way to find other threads that might prove helpful in shoring up their stance on this.

fwiw, a nursing home or foster home can be BOTH transitory and primary. That's why I agree wholeheartedly with David on picking a stance and slamming the door.

I don't see how you can pick a stance until you determine what type of property you are dealing with. It is a question of do they live there permanently (and that doesn't necessarily mean until they die, I don't know that I will stay where I am until I die, it means it is their home and it not a nursing home where patients are merely in bed receiving medical care.)

If it is assisted living and it is their home (some of those are purchased apartments) and they have several rooms and a kitchen, that is a home.

If it is a shared apartment for group housing and they share a kitchen, bath, etc. and they actually live there...they don't have another home, it is a home.

If it is a temporary shelter for a short period of time, that is transitory.

Sorry that I can do a link, but the September 2000 CRA/HMDA Reporter had a Q&A that indicated nursing homes are viewed as temporary housing and are not HMDA reportable.

I looked at the other threads and that Sept 2000 Q&A prior to posting. I agree that it all comes down to how the facility is being used. We will have to make that determination. I was mostly concerned with the 1-4/multi family question which I think Kaybee answered when she pointed out these aren't seperate units.