We had a request from a borrower for funds that that would have constructed a multi-use property: first floor: 2 commercial tenants, 2nd - 4th floors total of 12 high end residential condo units to be sold individually. The loan would have closed as permanent financing with a 12 month construction period, converting to P&I payments on the permanent phase. No consideration was given to principal paydowns from the sale of the condos, although this was required. Pre-sales of 4 units were required.

Would I be correct in assuming this is reportable as 1-4 family housing as the intent is that each unit be sold? And this is considered a purchase transaction??

Based on your description of the property I would agree with your assessment. Since the condos will be sold as individual units I really wouldn't consider this mixed-use property. And even if it would be mixed use property it would appear the 3 floors of condos would most likely trump the 1 floor of retail space.

Thank you!