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#2194116 - 09/28/18 02:09 PM
Manufactured Home Community-Only 4 pads-Reportable
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Diamond Poster
Joined: Nov 2008
Posts: 1,107
In the mountains
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Dwelling - The term includes...or a multifamily residential structure or community.
Multifamily residential structures and communities. A dwelling also includes a multifamily residential structure or community such as ... or a manufactured home community. A loan related to a manufactured home community is secured by a dwelling for purposes of § 1003.2(f) even if it is not secured by any individual manufactured homes, but only by the land that constitutes the manufactured home community including sites for manufactured homes.
Multifamily dwelling - a dwelling, regardless of construction method, that contains five or more individual dwelling units.
So a loan secured with a manufactured home community that only has four rentable pads and no manufactured homes as security would not be reportable, correct?
Thanks in advance.
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#2194229 - 09/28/18 09:29 PM
Re: Manufactured Home Community-Only 4 pads-Reportable
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I read it to say it is reportable.
"A loan related to a manufactured home community is secured by a dwelling for purposes of § 1003.2(f) even if it is not secured by any individual manufactured homes, but only by the land that constitutes the manufactured home community including sites for manufactured homes. "
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#2194258 - 10/01/18 02:29 PM
Re: Manufactured Home Community-Only 4 pads-Reportable
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The Swamp
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I also think that's the question, and I've wondered about the answer to this oddity myself.
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#2194274 - 10/01/18 03:35 PM
Re: Manufactured Home Community-Only 4 pads-Reportable
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Bloomington, IN
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I fully understand what a multi-family structure is but where in this definition does it state a mobile home park (community) has to have 5 or more pads to qualify as a multi-family unit. Seems to me they are bringing these communities into the definition regardless of the number of pads.
2. Multifamily residential structures and communities. A dwelling also includes a multifamily residential structure or community such as an apartment, condominium, cooperative building or housing complex, or a manufactured home community. A loan related to a manufactured home community is secured by a dwelling for purposes of § 1003.2(f) even if it is not secured by any individual manufactured homes, but only by the land that constitutes the manufactured home community including sites for manufactured homes. However, a loan related to a multifamily residential structure or community that is not a manufactured home community is not secured by a dwelling for purposes of § 1003.2(f) if it is not secured by any individual dwelling units and is, for example, instead secured only by property that only includes common areas, or is secured only by an assignment of rents or dues.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#2194302 - 10/01/18 05:35 PM
Re: Manufactured Home Community-Only 4 pads-Reportable
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Bloomington, IN
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So the question is "What makes it a 'Community'?"
I think that is the key question.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#2194317 - 10/01/18 06:19 PM
Re: Manufactured Home Community-Only 4 pads-Reportable
Dan Persfull
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So the question is "What makes it a 'Community'?"
I think that is the key question. I agree that this is the question and appreciate this discussion on one of the micro-points of HMDA. I too haven't looked into this much before this thread, but my thought is that a community would generally require paying of rent and or additional fees for shared amenities, services, and utilities. While Regulation C nor the commentary define a community the preamble to the 2015 final rule references a white paper on manufactured homes in comment 349. That white paper seems to provide some traits of manufactured home communities as follows: "Manufactured housing communities generally require a homeowner or renter to pay ground rent and additional fees for shared amenities, services, and utilities. Some communities are age-restricted and function as retirement or seasonal homes for residents aged 55 or older."
"There are about 60,000 land-lease manufactured home communities in the US.84 Manufactured-home communities lease plots of land to owners or renters of manufactured housing. Residents of manufactured-home communities most often have equity in their home but pay monthly ground rent for the home’s site and fees for common services. The community business model is built around revenue generation from ground rents, though community operators may also sell or rent new or pre-owned homes directly to consumers." Based on this, it would seem to me that there is a good argument for a "community" if these traits exist, even if there are less than 5 sites in the "community." That said, I would do as David suggests and contact the CFPB regarding guidance, though you might expand your question to include whether or not it contains the traits listed in the white paper referenced in comment 349 of the 2015 final rule. The referenced white paper can be found here: https://files.consumerfinance.gov/f/201409_cfpb_report_manufactured-housing.pdf
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Adam Witmer, CRCM All statements are my opinion, not those of my employer, and should not be taken as legal advice. www.compliancecohort.com
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#2194352 - 10/01/18 08:12 PM
Re: Manufactured Home Community-Only 4 pads-Reportable
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I don't think that cuts it really. You are going to have ground rent...period...but plenty of communities don't have other common amenities. Some will, some won't, but if you have 20 pads and ground rent only, it's still a 'community'. But would that be true of 2 pads/no home?
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My opinion only. Not legal advice. Say you'll haunt me - Stone Sour
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#2241867 - 09/01/20 03:49 PM
Re: Manufactured Home Community-Only 4 pads-Reportable
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Diamond Poster
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In the mountains
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Has there ever been an industry standard established for this subject area?
Is the consensus that there must be 5+ pads on one parcel to be considered a manufactured home community?
What about when there are 5+ single family residences, or multiple duplexes, triplexes or fourplexes on one parcel, if there are 5+ dwelling units in total is this considered a housing complex and therefore a multifamily dwelling?
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