Property Zoning/Transfer of Development Rights

The borrower may not sell air rights or make any changes to the property zoning without prior approval of Fannie Mae.

The table below lists the key points to consider in reviewing a request for property zoning changes or the transfer of development rights.

Guide Reference	Not Applicable
Delegation Criteria	Fannie Mae must approve all requests for property zoning/transfer of development rights.
What to Submit	Submit the following to Fannie Mae with your request: Copy of the borrower’s request Copies of all agreements in connection with the request, if applicable Copies of all necessary permits and approvals from all governmental agencies Servicer’s narrative Property name and address Fannie Mae loan number Reason for the request Analysis of the current financial condition of the property and the impact of the proposed changes Your recommendation
How to Submit	Generally: [email protected]. Structured Facilities* (Credit Facilities and Bulk Deliveries): [email protected] *Seniors Housing:** [email protected] Hard Copy (if required by Fannie Mae) Fannie Mae Credit Services/Drawer AM Mailstop 8H-607 3900 Wisconsin Ave. NW Washington, DC 20016 *Please contact us at these e-mail addresses for requirements specific to these financing types.
Fees	To be determined by Fannie Mae. Wire any fees due to Fannie Mae to the following account no later than 10 business days after you receive them. Include the type of fee or deposit, property name and Fannie Mae loan number. ABA Number: 021 039 500 Telegraphic Abbreviation: FNMA/NYC Account Number: 169220242 Note: Type of fee (Assumption or Partial Release), the Fannie Mae Loan Number and the Property Name. Attn: Trans code 513 - GL 747669921
Use of Funds	Any compensation received by the borrower in connection with the zoning change or transfer of development rights may be used as follows: To pay reasonable direct costs incurred by the borrower in connect with the transaction To repair or restore the property conditions impacted by the changes To offset the impact on the marketability of the property To fund restricted escrow accounts for future property improvements To fund a replacement reserve escrow or add funds to an existing escrow
Resolution/Follow-up	If the request is approved, follow the terms and conditions provided in the Fannie Mae concurrence letter. Prepare and send the necessary documents to Drawer AM for execution.
Unauthorized Zoning Change or Transfer of Development Rights	If you become aware that the borrower has undertaken an unauthorized zoning change or transfer of development rights without your prior approval or that of Fannie Mae, follow the same process you would if action had not yet been taken. Immediately send the borrower a Reservation of Rights Letter (Form 4804). Send a copy of Form 4804 to Drawer_AM along with the items listed above under What to Submit. Fannie Mae will decide whether to approve the zoning change/transfer of development rights or to declare the mortgage loan in default.

Always consult the loan documents, transaction documents, your servicing agreement, the Multifamily Guide and the relevant forms for complete instructions.