[Mary Beth Devillier]

I have a business entity borrowing for land development securing the request with 2 classified RV parks (land only). One of the parks has 3 cabins for rent and 2 mobile homes that house the staff. Do I look at this loan for hmda reporting with the majority of the use of the property… meaning mostly RV pads, therefore not reportable. But it does have residential type housing on the property, so would this trigger hmda reporting? I keep going back and forth with this one. I thought if a property had any residential housing involved it is hmda.

Topic

[Kimberly Boatwright, CAMS, CRCM]

Regulation C specifically excludes “transitory residences such as hotels, hospitals, college dormitories, and recreational vehicle parks” from the definition of dwelling. It also specifically says RVs, campers, travel trailers, and park model RVs are not dwellings.

I would not report this loan for HMDA purposes based on the facts provided in your question.

Although one of the RV parks has three rental cabins and two mobile homes used to house employees, I would not view the presence of those units as converting the RV park into a dwelling. The cabins appear to be ancillary to the RV park’s transient lodging operation, and the employee housing is associated with the operation of the park. The HMDA commentary also specifically recognizes that transitory employee housing is not a dwelling.

The mixed-use provision does not mean that the presence of any residential-type structure automatically makes a property HMDA-reportable. For a mixed-use property, the property must have a residential primary use. Here, the primary use is the operation of an RV park, which is specifically excluded as a transitory residence.

I would consider the loan not secured by a dwelling and therefore not HMDA-reportable, assuming there are no other facts indicating that the cabins or mobile homes are being used as long-term residential housing.

One thing I would add to your internal analysis: If the cabins are actually being rented as long-term housing rather than nightly/weekly/seasonal transient lodging, I would reassess and possibly change my opinion. But with what you’ve described, two RV parks, land/pads, a few cabins ancillary to the park, and staff mobile homes, this is not HMDA reportable IMO.

NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.

THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE

[Author]

Replies