Eligible Mortgagors include nonprofit cooperative housing corporations or nonprofit Cooperative Ownership Housing trusts. The property must contain at least 5 residential units with complete kitchens and bathrooms. If the Cooperative was a conversion, the conversion must have been completed at least three years prior to application date. The project must be fully subscribed with no units owned by the original developer. Age restricted cooperatives are eligible provided the primary ococcupant is age 62 years or older. At least 75% of the total number of units must be occupied by Cooperative members and no more than 25% of the units may be owned by investors. Commercial space is allowed provided it does not exceed 20% of the total net rental area and not exceed 20% of the effective gross income.
Full escrows for property taxes, all applicable insurance and any special assessments are funded at closing and maintained throughout the life of the loan.
The is a non-recourse loan. Long term loan up to 40 years, not to exceed 75% of remaining economic life. Low, fixed interested rates, fully amortizing. Debt Coverage ratio of 1.00 x of net operating income. The lesser of 65% of Market Rate Rental Apartment Project or 55% of gross sell-out value. The loan is fully assumable subject to the approval of CMI and HUD.
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