Operating evidence and financing
What this package helps you examine
A manufactured housing community combines site income with infrastructure and, sometimes, a separate owned-home business. The financing package should identify who owns each home, who maintains utility systems and which income and collateral the proposed lender will accept. A simple occupied-pad count cannot answer those questions.
Separate sites from homes
Create distinct schedules for occupied tenant-owned-home sites, community-owned homes, vacant developed sites and any undeveloped expansion land. Separate lot rent, home rent, installment or sale proceeds and utility reimbursements. The same occupied site should not be counted twice through home rent and lot rent unless the schedule explicitly separates the components of the actual payment.
Investigate infrastructure obligations
Map water, wastewater, roads, drainage and electrical systems to ownership, operating responsibility and capital needs. Private ownership does not by itself remove public-water-system obligations; EPA's classifications depend on the system and service facts. Obtain the applicable operator, regulator and professional evidence instead of inferring compliance from the absence of a municipal utility bill.
Match the property to the financing channel
Fannie Mae's MHC term sheet describes a specific community financing product and associated third-party reports. It does not mean every park, owned-home mix or expansion plan qualifies. Present the exact ownership mix, condition, utility facts and business plan to the lender. Model infrastructure work and temporary service disruption separately from recurring operating expense.
Use the workbook
- Use Assumptions!D5 for Base (1) or Downside (2), and the labeled scenario input rows. Enter source data in Pad and Home Cash!D10:L21; preserve formula cells and an untouched workbook copy.
- Community-owned-home rent includes its pad; do not add another pad rent. Utility costs use physical sites and recoveries use paying sites. Lender acceptance of home income, infrastructure and property eligibility remains separate.
- Reconcile Operations to Summary. Apply the entered lender adjustment separately to the modeled cash flow. Sizing uses amortizing debt service, while first-year payments reflect the entered interest-only period.
- In Assumptions, replace illustrative value, LTV, DSCR, debt yield, rate, amortization and requested ceiling with the intended scenario. Review capacities in Debt and Funding. The smallest modeled capacity does not establish eligibility or approval.
- Closing equity includes the entered opening cash and restricted reserves. Additional operating cash need is measured after that opening cash, so do not add it twice. Inspect monthly cash and remaining principal at maturity.
- Read Review for model conventions and limitations. Save each scenario with its supporting evidence and date; actual lender definitions, legal rights and professional findings control the transaction.
Questions to prepare for a lender
What exactly generates each resident payment?
Site and home schedules separating lot rent, home rent, utilities and other charges.
Which homes and equipment are owned or pledged?
Titles, liens, inventory and financing documents.
Who owns and operates the utility systems?
System maps, permits, operator agreements and regulator correspondence.
What capital is needed to maintain service?
Engineering findings, bids and a dated repair or replacement plan.
Will the selected program accept the actual property mix?
Written lender screening against current controlling program requirements.
Can the sponsor fund disruption before reimbursement?
Monthly operating and capital cash schedule with accessible equity.
03 / Prepare
Build the evidence file
Use this as a preparation checklist. The lender determines the documents, definitions and review conditions for the actual transaction.
Cash flow and operations
- Site roll identifying tenant-owned homes, community-owned homes and vacancy.
- Resident leases, home-rental contracts and other payment agreements.
- Lot, home, utility and ancillary collections reconciled separately.
- Delinquency, concessions and nonrecurring home-sale proceeds.
- Monthly operations with utility costs and recoveries shown distinctly.
- Owned-home maintenance, turnover and replacement cost history.
Property and collateral
- Site plan and legal inventory, including developed and undeveloped areas.
- Home-title and lien records for community-owned inventory.
- Water and wastewater ownership, permits and operator documentation.
- Testing, inspection and compliance correspondence relevant to actual systems.
- Condition assessment for roads, drainage, utilities and common facilities.
- Capital bids with outage, resident-access and restoration assumptions.
Sponsor and execution
- Sponsor and manager community-operating experience.
- Ownership and guarantor documents identifying related home businesses.
- Liquidity evidence after infrastructure and other commitments.
- Resident-service and emergency-response responsibilities.
- Debt and contingent obligations across the portfolio.
- Funding authorization for capital overruns and disrupted collections.
Closing and funding
- Current lender determination of property and income eligibility.
- Required utility, management and material contract consents.
- Third-party reports and outstanding lender acceptance conditions.
- Home or equipment lien treatment separate from real-estate collateral.
- Payoff, title, insurance and reserve funding evidence.
- Draw conditions and temporary funding for infrastructure work.
Watch for these assumptions
- A privately owned utility system may still fall within a regulated public-water classification.
- Home sales, lot rent and owned-home rent have different timing and economic characteristics.
- Do not count utility recoveries without the matching cost and collection assumptions.
- A program summary is not a substitute for review of the actual home mix and infrastructure facts.
Before you rely on the result
- Reconcile every site and home to a single income and ownership record.
- Obtain utility evidence before treating required work as discretionary.
- Confirm the actual capital channel and fund the infrastructure downside.
Scope and limitations
- Educational analysis; not a financing offer, appraisal, legal opinion or program eligibility determination.
- Workbook figures and thresholds are illustrative editable assumptions, not current lender quotes or universal underwriting standards.
- Document requests depend on the lender, transaction, jurisdiction and property; address unresolved issues with the relevant qualified professional.
Sources and applicability
These references support the stated asset and risk context. The questions and document lists are preparation tools, not a statement that every lender requires or accepts the same package. Actual contracts, applicable rules and the chosen lender determine the transaction requirements.
- EPA — Information about Public Water SystemsDefinition and classifications; updated March 16, 2026 · Checked 2026-10-21Source-specific context; numerical examples and decision workflow are original hypothetical analysis.
- Fannie Mae — Manufactured Housing Communities Term SheetOpening description and Third Party Reports · Checked 2026-10-21Source-specific context; numerical examples and decision workflow are original hypothetical analysis.