HI of Condo Common Area-student rentals

Posted By: Compliance504

HI of Condo Common Area-student rentals - 05/12/15 05:37 PM

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???
Posted By: Truffle Royale

Re: HI of Condo Common Area-student rentals - 05/12/15 05:52 PM

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.
Posted By: Melissa S

Re: HI of Condo Common Area-student rentals - 05/12/15 05:56 PM

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.
Posted By: Compliance504

Re: HI of Condo Common Area-student rentals - 05/12/15 06:27 PM

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....
Posted By: NSF, CRCM

Re: HI of Condo Common Area-student rentals - 05/12/15 06:30 PM

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.
Posted By: Truffle Royale

Re: HI of Condo Common Area-student rentals - 05/12/15 06:31 PM

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.
Posted By: Compliance504

Re: HI of Condo Common Area-student rentals - 05/12/15 06:31 PM

I was most concerned about whether or not renting to students on an annual basis would make it "transient"
Posted By: Compliance504

Re: HI of Condo Common Area-student rentals - 05/12/15 06:32 PM

Thanks everyone....
Posted By: Melissa S

Re: HI of Condo Common Area-student rentals - 05/12/15 06:34 PM

Truffle - thanks for the clarification on individually deeding making the property 1-4.