| 1E - DSCR < 1.10; 1F - DSCR < 1.40 & < or = 75% U/W. Loan is secured by a 218-unit mobile home community in Fenton, MO, built in 1983 and renovated in 1996. The 3/5/2009 inspection rated the Property in Fair condition. YTD 3/31/2009 NCF DSCR is 0.78x with 72% Occ as of 4/27/2009; YE 12/31/2008 NCF DSCR was 0.75x with 72% Occ as of 3/26/2009. Loan was U/W at 1.18x with 88.5% Occ based on 233 units. DSCR decline is attributed to decreased Occupancy and Income, and certain increased Operating Expenses, specifically, R&M, GA, and P&B. The 2008 inspection report indicated a factor in the reduced property performance: \''There are no amenities and the community has currently 15 unusable pads or lots due to concrete deterioration.'' Bank of America is in the process of verifying with Borrower the reasons for Occupancy decline, and if any of the increased expenses were actually non-recurring expenses that might be adjusted from analysis. Historically, the Borrower had mingled some CapEx road and UTL repairs in general R&M expenses, as well as a one time non-recurring expense of $5,000 for training the property manager; the adjusted analysis resulted in the Loan being removed from the watchlist last year. Bank of America has again requested Borrower''s feedback re: efforts to restore the 15 unusable pads to leaseable condition; awaiting a response.
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