• Key principal should have two or more years of experience in operating MHCs and own one other MHC property
• Borrower may be a limited partnership, corporation, limited liability company or a tenancy in common (TIC) with 10 or fewer tenants in common
• General partnerships, limited liability partnerships, REITs and certain trusts may also be acceptable in limited circumstances, subject to additional requirements
• Borrower must be a Single Purpose Entity (SPE)
• On loans less than $5M, a borrower other than a TIC may be a Single Asset Entity instead
• If the borrower is a TIC, each TIC must be an SPE

• The property must have a minimum of five paid sites
• The percentage of homes owned by a borrower-affiliate or third-party investor cannot exceed 25% in aggregate
• Homes must conform to the requirements of the Federal Manufactured Home Construction and Safety Standards Act of 1974 (HUD Code Standards)
• Private wells and septic systems are allowed with considerations
• Leases cannot contain options to purchase pad site
• Retail sales or financing by borrowing entity of any manufactured home are not allowed
• RV campgrounds and broken condominiums are excluded

• One year renewable lease term, unless there is a good cause for non renewal. Good cause includes violations of law, an existing default in the payment of rent at time of lease renewal (subject to applicable grace period and cure rights), and serious or repeated violations of the material terms and conditions of its lease
• 30-day written notice of rent increases*
• Five day grace period for rent payments and the right to cure rent payments defaults within the cure period set forth in the lease. If the lease has no cure period, then the right to cure the rent payment default within 10 days after expiration of the four day grace period.*
• Right to sell the manufactured home to a buyer that qualifies as a new tenant in the MHC, without having to first re-locate it out of the MHC
• Right to sell the manufactured home in place within 30 days after eviction, subject to MHC owners right to prevent a dangerous condition or any threat or risk of bodily harm to tenants or visitors of the MHC; nothing prohibits the MHC owner from exercising any right or remedy available against tenant under law
• Right to (a) sublease, and (b) assign the pad site lease for the unexpired term to the new buyer or sublessee of the tenant’s manufactured home without any unreasonable restraint, so long as the new buyer or sublessee, as applicable, qualifies as a new tenant within the MHC (including satisfying applicable credit and background checks and requirements in the MHC rules and regulations)
• Right to post “For Sale” signs that comply with MHC rules and regulations
• Right to receive at least 60 days’ notice of planned sale or closure of the MHC*

Any protection that violates applicable law or is less favorable to a resident than applicable law will be automatically void and will not affect the enforceability of any other provisions of the agreement.

 
Note: *All eight protections apply to owners of manufactured homes at the Property. Protections 2, 3 a nd 8 also apply to renters of manufactured homes at the Property.