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#2215372 - 06/10/19 10:48 PM Affordable housing and mobile home parks
CRAatBOK Offline

Power Poster
Joined: Mar 2004
Posts: 6,172
Further South than I wanna be.
We are looking at a loan to purchase a mobile home park in a moderate-income CT with a high percent of households below the poverty level. I would like to qualify it as affordable housing if possible. The owners will have some rental units, but the majority of the lots will be strictly lot rentals with the renters owning their own homes. I believe I should be able to qualify it because it is supplying a place for LMI homeowners to live.

Has anyone ever qualified a loan such as this? If so, any hints as to how to present it?
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#2215808 - 06/14/19 08:36 PM Re: Affordable housing and mobile home parks CRAatBOK
mrogersfib Offline
100 Club
Joined: Aug 2018
Posts: 116
Yes, these do qualify for CRA, and are qualified for CRA granted these aren't for super yacht mobile homes. I have gone the route of pointing out that under the new HMDA rules that these qualify as a "community" since the property is securing more than 5 units all together essentially. For instance, if a borrower is building 3 duplexes on the same property it would be considered as multi-family under the new changes. So I would go about it that route, but also remember that if an activity possesses multiple CD purposes it is assumed that the loan posses a primary purpose so look to also go the revitalization route as well as the affordable housing route simultaneously.

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#2219863 - 08/16/19 06:51 PM Re: Affordable housing and mobile home parks CRAatBOK
Len S Offline
Diamond Poster
Joined: Oct 2004
Posts: 2,018
Generally for community development lending purposes, the only way to qualify for affordable housing recognition is to extend a mortgage for multifamily housing that is affordable and occupied by low-or moderate-income tenants. As observed by the previous poster the loans may qualify for revitalization/stabilization if they are in a low-income or moderate-income tract or tracts targeted by federal, state, local or tribal government.
Last edited by Len S; 08/16/19 06:51 PM.
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