Section 803

Underwriting

803.01

Financial Operation

Requirements

As part of your underwriting analysis, you must:

  • Examine the year-to-date operational budget.
  • Collect, review, and analyze audited financial/operating statements for the last 3 years of operations.
  • Ensure that the average Cooperative Maintenance Fee Accounts Receivable Cooperative Maintenance Fee Accounts ReceivableCooperative Maintenance Fees due the Cooperative Organization that are more than 30 days past due. for the last 3 years is less than 3% of the annual Cooperative Maintenance Fees Cooperative Maintenance FeesPeriodic fee assessed each shareholder or owner of a Cooperative Organization to fund costs and expenses associated with ongoing operations of the Cooperative Property. .
  • Ensure that the Cooperative Operating Reserve Cooperative Operating ReserveLiquid funds, including loan proceeds, controlled by the Cooperative Organization to cover operating and capital expenses, and comprised of unrestricted cash, less the sum of accounts payable. at closing is at least 10% of the annual Cooperative Maintenance Fees Cooperative Maintenance FeesPeriodic fee assessed each shareholder or owner of a Cooperative Organization to fund costs and expenses associated with ongoing operations of the Cooperative Property. .
803.02

Property Valuation

Requirements

You must obtain an Appraisal AppraisalWritten statement independently and impartially prepared by a qualified Appraiser stating an opinion of the Property's market value as of a specific date, and supported by the presentation and analysis of relevant market information.  per  Part II, Chapter 2: Valuation and Income that provides a value of the Cooperative Property Cooperative PropertyMultifamily residential property owned by a Cooperative Organization. on a Cooperative Market Rental Basis Cooperative Market Rental BasisFinancial analysis or valuation of a Cooperative Property conducted as if it were operated as a conventional multifamily property subject to applicable rental restrictions. for determining the LTV Ratio LTV RatioRatio of the actual aggregate UPB of the Mortgage Loan, plus any Pre-Existing Mortgage Loans, plus any Hard Pay Preferred Equity, plus any Mezzanine Financing, to the value of the Property, expressed as a percentage.  per Form 4660 .

Guidance

You may obtain an Appraisal AppraisalWritten statement independently and impartially prepared by a qualified Appraiser stating an opinion of the Property's market value as of a specific date, and supported by the presentation and analysis of relevant market information. per  Part II, Chapter 2: Valuation and Income that provides a value of the Cooperative Property Cooperative PropertyMultifamily residential property owned by a Cooperative Organization. on a Cooperative Gross Sellout Value Cooperative Gross Sellout ValueValue based upon the sum of the gross sales prices of all units (subject to discounts on rent restricted units) plus the aggregate UPB of all existing Mortgage Loans (prior to any proposed refinancing) secured by a Lien on the Cooperative Property. basis.

803.03

Subordinate Debt

Requirements

You must ensure that any existing debt secured by a Lien LienLien, mortgage, bond interest, pledge, security interest, charge, or encumbrance of any kind. on a Cooperative Property Cooperative PropertyMultifamily residential property owned by a Cooperative Organization.  complies with  Part III, Chapter 13: Supplemental Mortgage Loans, Section 1302: Supplemental Mortgage Loans .  You must also calculate the