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#2264675 - 01/12/22 06:10 PM Community Development Lon
Somer Offline
Junior Member
Joined: May 2013
Posts: 43
I am having a brain freeze moment.

I have a second lien loan to a developer to fund additional cost increases and design changes to a residential building that has 16 condos, of which 2 are earmarked as affordable housing. The loan will also be reported under HMDA.

Can I also include a prorated loan amount for the 2 affordable units under Community Development. The developer plans to sell each of the condos upon completion, but for now he has total ownership of all of the units.

Because there are 16 units and the loan covers all 16 of the units, I am thinking that I can report this loan both under HMDA and Community Development as a multifamily property.

Can someone confirm if this is correct.

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CRA
#2264758 - 01/13/22 10:59 PM Re: Community Development Lon Somer
Len S Offline
Diamond Poster
Joined: Oct 2004
Posts: 1,946
Connecticut
If the structure consists of condos it is not a multifamily structure which means it can't be counted as community development. If it were an apartment complex it could be counted under certain circumstances when it meets the "primary purpose" test. But that appears to be a moot point in this situation as you describe it.
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