Conventional Homeowners Association Questionnaire



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Project Name: Loan Number: Name of Master Association, if applicable: Property Address: Project Eligibility 1. Is project part of a Master Association? If, provide master insurance policy, full questionnaire and budget. 2. Is this project a detached condominium (project contains all detached units but is still zoned as a condominium?) 3. Is the project a condominium hotel? 4. Do all units contain full sized kitchen appliances? 5. Does project have hotel-type services? If, provide types of services 6. Are short-term rentals permitted? 7. Is year-round occupancy permitted? 8. Is project a timeshare or a segmented ownership? 9. Is project a houseboat project? 10. Are there any manufactured housing units within the project? 11. Is project a multi-dwelling unit condominium (including lockout units in project) in which ownership of multiple units is evidenced by a single deed or mortgage? 12. Is there a mandatory rental clause? 13. Is project an investment security, common interest apartment or does the project have any non-incidental business operation owned or operated by the HOA? 14. Does the project have any non-incidental business operations owned or operated by the Homeowners Association (such as but not limited to a restaurant, spa, health club, etc.)? 15. Does the association contain any commercial space? If, what percentage of square footage is used for commercial purposes If, what is commercial space used for? 2012-1 Page 1 of 6

16. Is the project a legal non-conforming use of land (if zoning regulations prohibit rebuilding to current density in event of destruction)? 17. Are there recreational leases? If yes, provide documents. 18. Is there any pending litigation involving the homeowners association or developer? If, provide details and documentation of the circumstances surrounding the litigation 19. Does the project consist of any units that are less than 400 square feet? Sales and Construction Status 20. Has the homeowners association been turned over to the unit owners? If, provide date control of homeowners association turned over to unit owners 21. Are all units, common elements, and amenities completed in subject project? 22. Are all units, comment elements, and amenities completed in subject legal phase? If, what is incomplete? Number of units complete: What common elements & amenities are incomplete? 23. What year was the project built (completed)? 24. Number of stories (if project is contained within one building) 25. Is there a bond letter or completion assurance for the incomplete common elements and amenities (If yes, provide copy) 26. Is the project subject to any additional phasing or annexation? 27. Is the project a conversion? 28. Is the project a full gut rehab? 29. Is the project a non-gut rehab? 30. If property is a non-gut rehab conversion, provide a copy of the engineers report and evidence repairs/renovations have been completed if any of the following apply: Less than 90% of the units sold and conveyed The HOA has not been turned over to unit owners Project is not complete and is subject to additional phasing or annexation Project converted <= 3 years ago Page 2 of 6

Occupancy Information 31. Total # of legal phases is project: Subject property located in legal phase #: Total # of units in project # of units sold and conveyed in project # of units under contract in project 32 Breakdown of combined total of units sold/conveyed and under contract in project Primary Residence Second Home Investment Home Retained by Developer Total # of units in subject legal phase (If greater than two phases complete phasing addendum at the end of this document) # of units sold and conveyed in subject phase Breakdown of combined total of units sold/conveyed and under contract in legal phase Primary Residence Second Home Investment Home Retained by Developer Will Developer sell or maintain units Will Developer sell or maintain units? 33. Does any investor (with the exception of the developer on new construction or new conversion) own more than 10% of the total project? Assessment and Budget Information 34. The amount currently held in reserves for future repair and/or replacement of major components of the project is? $ 35. Are there any monthly assessments delinquent more than 30 days? 36. Provide the number of units that are delinquent and the dollar amount outstanding: $ / # Indicate unit assessment ranges for this association (a) Assessments range from: $ (b) Assessments range to: $ (c) What is the frequency of the assessment charge? $ 37. Are there any mortgages outstanding for the association (only include loans secured by real estate) 38. Total reserves budgeted for the year: $ Page 3 of 6

Title and Ownership Information 39. Are all units owned fee simple? 40. Are any units owned as leasehold estates? If yes, provide leasehold agreement. 41. Are any of the common areas still owned by the developer? 42. Do the unit owners have sole ownership and the right to use the project s facilities? Legal Information 43. Do the legal documents of the Homeowners Association contain language that protects the first mortgagee rights? 44. Have project legal documents been legally recorded (Articles of Incorporation, Bylaws, Declaration, etc.)? 45. Is the unit part of a condominium regime that provides for common and undivided ownership of common areas by unit owners? 46. Are there any provisions in the condominium project documents that give a unit owner or any other party priority over any rights of the first mortgagee of the condominium unit pursuant to its mortgage in the case of payment to the unit owner of insurance proceeds of condemnation awards for losses to or taking of condominium units and/or common elements? 47. If unit is taken over in foreclosure or deed-in-lieu of foreclosure, is the mortgagee (lender) responsible for delinquent HOA assessments? 0 to 6 months 6 to 12 months 48. The project was created and exists in full compliance with applicable laws and regulations including all State law requirements in the jurisdiction that the project is located. Homeowner Information 49. Are there any current special assessments or governing body approved special assessments not yet due and payable, against this unit? If yes, provide details. Management Information 50. What is the length of the current management contract (in years)? 51. Does the management contract require a penalty for cancellation? If yes, provide management contract/details. 52. Does the management contract require an advanced notice of at least ninety days? 53. Are two or more board members required to authorize disbursements from the reserve account? Page 4 of 6

54. Does the homeowners association have separate records for the operating reserves accounts? 55. Are monthly bank account statements being sent directly to the homeowners association? 56. Does the management firm have the authority to disburse funds from the reserve account? Insurance Information 57. Is hazard insurance in place to cover 100% of the insurable replacement cost of the project improvements, including the individual units? The deductible should not exceed $10,000 or 1% of the face amount of the insurance policy. 58. Is liability insurance in place providing at least $1MM of coverage for bodily injury and property damage per occurrence? 59. Is the condominium homeowners association self-insured? 60. Has the homeowners association banded together with other unaffiliated associations to self-insure all of the general and limited common elements of the various associations? 6. Is flood insurance (if required) in place providing coverage at least equal to the lesser of 100% of the insurable value of the facilities or the maximum coverage available under NFIP? (Maximum deductible is the lesser of $5,000.00 or 1% of policy s face amount unless state law requires a higher deductible.) 62 1. Is fidelity insurance in place covering the maximum amount of funds that will be in the custody of the owners association or Management Company at any time? (Required if project is 20 units or more) Documentation I, the undersigned, certify that to the best of my knowledge and belief the information and statements contained on this form and the attachments are true and correct. Signature of Association Representative or Preparer Name and Title of Association Representative or Preparer Representative or Preparer s Company Name Address Date of Completion Telephone Number Page 5 of 6

Phasing Addendum Phase # # Units in Phase # Units Conveyed # Units Under Bona-fide Contract # Units OO/2 nd Homes # Units NOO Phase Complete Y/N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 TOTAL Page 6 of 6