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#2013573 - 05/12/15 05:37 PM HI of Condo Common Area-student rentals
Compliance504 Offline
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Tennessee
We are making a loan to a general partnership to improve an elevator in a 22 condo rental....

I'm pretty sure under normal rental conditions that this is HMDA reportable as HI of 1-4 dwelling....

However, these condos are rented mainly to students on campus on an annual basis...so this could be considered transient housing and not reportable...is that correct?

Would you report this as listed above or not report it???

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#2013576 - 05/12/15 05:52 PM Re: HI of Condo Common Area-student rentals Compliance504
Truffle Royale Offline

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Are the units deeded individually in the name of the partnership or does it own the whole building under one title?
You called these 'condo rental(s)'.
Sounds like this would be HI on a multi-family building.

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#2013578 - 05/12/15 05:56 PM Re: HI of Condo Common Area-student rentals Compliance504
Melissa S Offline
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Maine
Are all 22 condos in the same building? If they are, then you are looking at a multi-family property, rather than a 1-4. but if you have multiple buildings all containing 1 - 4 condo units, I agree you have a 1-4 family property.

If some of the condo units are truly used as permanent residences for families, I might walk on the side of caution and report as HI.
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#2013593 - 05/12/15 06:27 PM Re: HI of Condo Common Area-student rentals Compliance504
Compliance504 Offline
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Tennessee
OK...more info......the general partnership owns 22 of 68 units in the condo building...they are individually deeded....they mainly rent the units to students on campus....

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#2013596 - 05/12/15 06:30 PM Re: HI of Condo Common Area-student rentals Compliance504
NSF, CRCM Offline
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VA
Originally Posted By Compliance504
they mainly rent the units to students on campus....


Which means that they don't always just rent them to students. Thus I would report this on my LAR.
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The answers I give are my opinions. Not legal advice.

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#2013598 - 05/12/15 06:31 PM Re: HI of Condo Common Area-student rentals Compliance504
Truffle Royale Offline

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So if the partnership only owns a third of the units, how and why are they taking out a loan to repair the elevator? Shouldn't that be the purview of the homeowners' association?

fwiw, all individually deeded makes this 1-4 for reporting whether it's one building or six.

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#2013599 - 05/12/15 06:31 PM Re: HI of Condo Common Area-student rentals Compliance504
Compliance504 Offline
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Tennessee
I was most concerned about whether or not renting to students on an annual basis would make it "transient"

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#2013601 - 05/12/15 06:32 PM Re: HI of Condo Common Area-student rentals Compliance504
Compliance504 Offline
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Posts: 673
Tennessee
Thanks everyone....

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#2013604 - 05/12/15 06:34 PM Re: HI of Condo Common Area-student rentals Compliance504
Melissa S Offline
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Maine
Truffle - thanks for the clarification on individually deeding making the property 1-4.
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