Does Absence of Owner-Tenant Occupancy Data Affect MPR?

[Fernando]

Does it ?

Better that way. Takes too much time and accounting skills.
Are we experts in analyzing condo budgets?

 

[bnmappraisal]

I didn't read through the whole thread, but here is my template for condo's and the steps I generally take (besides calling the management company of the association if there is one)

"Note regarding number of units in the subject's complex: The total number of units is ***. Based on information from management agency/questionnaire, owner occupied is ** (~**%), and the number of second home/recreational units is ** (~**%). According to the questionnaire, they do not track rental units, therefore this is assumed to be **. The primary occupancy of the complex is Owner Occupied. This is not uncommon in this neighborhood, not considered a detriment.
Based on information from County Property Appraiser records and IMapp, the total number of units in the subject's complex is 78. Based on information from these sources, owner occupied is considered to be 43 with the remainder considered tenant occupied or second home/recreational.The primary occupancy of the complex is considered to be Owner Occupied. This is not uncommon in this neighborhood, not considered a detriment."

I obviously tweak it as needed and what I did to come up with the data for the report. Many times, because IMapp only gives me the total number of owner occupied, I leave the "# of Units Rented" at the bottom of the UAD Condo form as "UNK" and leave that comment above. Sometimes the client/lender will come back with a full questionnaire or some other source to tell me the # of Units Rented, in which case I amend the report. Otherwise, I leave it up to them as I did my due diligence within the course of normal business, etc

Feel free to use. YMMV

 

[glenn walker]

Better that way. Takes too much time and accounting skills.
Are we experts in analyzing condo budgets?

.

Better that way. Takes too much time and accounting skills.
Are we experts in analyzing condo budgets?

Form : 1073 [did/did not] analyze the condominium budget for the current year. Explain the results of the analysis of the budget (adequacy of fees, reserves, etc.) or why the analysis was not performed. Is saying you are not qualified a legitimate excuse ? What if the Lender has a Copy and offer to send it to you ? You going to Normando it and says it was not available ? Whats all you Rocket Scientist Opinions on this issue.

 

[Fernando]

.

Form : 1073 [did/did not] analyze the condominium budget for the current year. Explain the results of the analysis of the budget (adequacy of fees, reserves, etc.) or why the analysis was not performed. Is saying you are not qualified a legitimate excuse ? What if the Lender has a Copy and offer to send it to you ? You going to Normando it and says it was not available ? Whats all you Rocket Scientist Opinions on this issue.

Lender NEVER sent me a copy ever.
Thank you lender for your laziness.

 

[glenn walker]

Lender NEVER sent me a copy ever.
Thank you lender for your laziness.

So how do you know if there are any long term special assessments, that don't show or are not included in the Monthly HOA Dues ? We have projects around here with large ones due to earthquakes, blown off roofs, etc. One has a $12,,000 per year special , payable for three years, many appraisers have no idea, because they have no Condo Cert and no Budget and are clueless.

 

[Fernando]

So how do you know if there are any long term special assessments, that don't show or are not included in the Monthly HOA Dues ? We have projects around here with large ones due to earthquakes, blown off roofs, etc. One has a $12,,000 per year special , payable for three years, many appraisers have no idea, because they have no Condo Cert and no Budget and are clueless.

I do condos in my normal area so I tend to know what's happening.
If sale, such assessments are significant and agent usually mentions it in MLS or sales contract. Whether seller or buyer will pay it needs to be clarified in contract.