Cooperative Properties

• Existing stabilized Cooperative Properties in eligible Cooperative Property markets.
• Cooperative corporations with strong management and solid operating history.
• Limited equity cooperative properties for low- and moderate-income families are also eligible.
• Overall Property condition rating of two or better.

5 – 30 years.

Up to 30 years.

Fixed-rate.

55% (on a market rental basis).

1.00x on actual underwritten operations; 1.55x when utilizing market rate rentals.

• The property management company is required to have experience with cooperative properties of like size and market.
• Reserve balance must be equal to or greater than 10% of annual maintenance fees.
• Maintenance fees must be sufficient to achieve a balanced budget.
• High levels of ownership by one sponsor or investor (in excess of 40%) will require additional due diligence.

Supplemental Mortgage Loans are available.

Loans may be voluntarily prepaid upon payment of yield maintenance.

30- to 180- day commitments. Borrowers may use the Streamlined Rate Lock option provided that the Board of Directors or managers of the Cooperative Organization approve any increase in the Cooperative Maintenance Fee prior to using the Streamlined Rate Lock option.

Non-recourse execution is available with standard carve-outs for “bad acts” such as fraud and bankruptcy.

Replacement reserve, tax, and insurance escrows may be required, depending on the Underwriting Tier. Escrows are typically required for a Limited Equity Cooperative Property.

Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.

Mortgage Loans secured by a Cooperative Property are typically not assumable by another entity.