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#2243974 - 10/13/20 06:18 PM Call Report Owner Occupied CRE?
beegee Offline
Diamond Poster
Joined: Feb 2004
Posts: 1,087
South
We have a building that is 75% owned by Michael and 25% owned by Jason.

Jason owns 100% of the company that operates out of the facility and pays the rent.

Is this considered owner-occupied for call report purposes? We were unsure given he owns just 25% of the building.

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General Discussion
#2244208 - 10/17/20 02:56 PM Re: Call Report Owner Occupied CRE? beegee
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,209
Galveston, TX
The instructions for Schedule RC-C define owner occupied non-farm, non-resident loans as loans for which the primary source of repayment of the loan is the cash flow from the ongoing operations and activities conducted by the party that owns the property (or an affiliate).

I would say that the company that operates out of the facility would be classified as an affiliate with 25% ownership of the building by Jason, but really a question for your external accountants or your EIC.
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