Freddie Mac Loan Number: __________________
Property Name: ____________________________
REGULATORY AGREEMENT ANALYSIS
(Revised 3-1-2014)
Prepared by [Attorney Name] of [Law Firm Name] on behalf of [Seller/Servicer
Name] on [Date].
[FOR QUESTIONS 4 THROUGH 14, PLEASE INCLUDE A REFERENCE TO THE
APPLICABLE SECTION OF THE REGULATORY AGREEMENT]
1.
Name and Date of Regulatory Agreement (including any amendments)
2.
Parties to Regulatory Agreement
3.
Purpose of the Regulatory Agreement (e.g. bond financing, tax abatement, tax credits,
subordinate loan, etc.)
4.
Use and/or Occupancy Restrictions
a.
Does the Regulatory Agreement impose any use or occupancy restrictions for the
Mortgaged Property (e.g. low income, seniors, disabled tenants, etc.)?
b.
5.
If the answer to “a” is yes, please specifically describe each such restriction and
the number and type of units that are subject to each.
Rent Restrictions
a.
Does the Regulatory Agreement limit the amount of rents that may be charged for
units at the Mortgaged Property?
b.
If the answer to “a” is yes, please specifically describe each such restriction and
the number and type of units that are subject to each.
6.
Other Obligations
Does the Regulatory Agreement impose any other material obligations, restrictions or
requirements on Borrower, a member or partner of Borrower, the Guarantor and/or the
operation of the Mortgaged Property (e.g. requirements that Borrower provide on-site
social services or on-site facilities, such as a computer center)?
7.
Term of Agreement and/or Restrictions
a.
When does the Regulatory Agreement expire?
b.
If different than “a” above, when do any applicable restrictions expire?
Regulatory Agreement Analysis
8.
Lien or Pledge
Is the Regulatory Agreement secured by any kind of lien on or pledge of the Mortgaged
Property or any other collateral?
9.
Enforcement
a.
Who has the right to enforce the Regulatory Agreement against the Borrower or
the Mortgaged Property?
b.
What rights or remedies may be exercised against the Borrower, a member or
partner of the Borrower, the Guarantor or the Mortgaged Property in the event of
a breach of the Regulatory Agreement?
Please note specifically if the remedies include any of the following: the right to
seize rents, the right to replace the property manager or operator, the right to
appoint a receiver, and/or the right to foreclose any lien or pledge.
10.
Notices; Cure Rights
a.
Do mortgage lenders have notice and/or cure rights under the Regulatory
Agreement?
b.
If the answer to “a” is yes, please describe and specify whether such rights are
limited to only certain mortgage lenders (e.g., first lien lenders, lenders who give
notice, etc.).
c.
Other than notices related to cure rights by mortgage lenders, are any other
notices or notifications required under the Regulatory Agreement?
d.
If the answer to “c” is yes, please identify the parties who must be notified, the
circumstances under which notices must be provided, and the applicable contact
information.
11.
Termination Rights
Is the Regulatory Agreement terminable upon foreclosure, a deed of lieu or other similar
disposition of the Mortgaged Property by mortgage lender?
12.
Transferees
a.
Does any party have the right to approve a transferee of the Mortgaged Property
or does a transferee of the Mortgaged Property have to satisfy certain
requirements?
b.
If the answer to “a” is yes, please describe those approval rights and requirements.
Please note whether those approval rights and/or requirements apply to (i) the
grant of a mortgage lien to a mortgage lender, (ii) a transfer of the Mortgaged
Property to a mortgage lender or its designee in connection with a foreclosure,
Regulatory Agreement Analysis
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deed in lieu or other similar disposition of the Mortgaged Property, or (iii) a
transfer of the Mortgaged Property by a mortgage lender to a third party.
13.
Assignments
a.
Does any party have the right to consent to an assignment of the Borrower’s rights
under the Regulatory Agreement?
b.
14.
If the answer to “a” is yes, what is required to obtain such consent?
Other Matters
Are there any other material provisions, rights, obligations, or requirements under the
Regulatory Agreement, or any other information relating to the Regulatory Agreement,
not discussed above?
NOTE: If the rights or remedies under the Regulatory Agreement are other than specific
performance and/or injunction, or if the Regulatory Agreement does not terminate upon a
foreclosure, deed in lieu, or other similar disposition of the Mortgaged Property by the mortgage
lender, Freddie Mac may require a subordination and/or standstill agreement in a form
acceptable to Freddie Mac.
Regulatory Agreement Analysis
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