Commercial Bank to Community Development Block Grant

 

Commercial Bank

A commercial bank is a banking institution that provides credit and depository services primarily for commercial activities, although it does also serve consumers. It provides businesses with commercial checking accounts, which in turn supplies the bank with cash that it uses to extend loans to other businesses. Commercial banks also obtain funds through investments, loans from other institutions, their interest earnings and, if part of the Federal Reserve Bank, loans from the Fed.

Commercial Easement In Gross

The most common type of easements in gross, the commercial easement in gross is normally given to utility providers in order to provide utilities for the greater community.

Commercial Investment Real Estate Institute (CIREI)

An affiliate of the National Association of Realtors, the Commercial Investment Real Estate Institute is an organization for professionals in the commercial real estate field. Qualified members receive the CCIM (certified commercial investment member) designation.

Commercial Leasehold Insurance

A type of insurance coverage that provides funds to pay the lease rent if the tenant is unable to pay it because of accidents or covered situations.

Commercial Loan

An imprecise term used for most non-residential property loans. However, most lenders differentiate between apartment (mortgage) loans, business loans and commercial (mortgage) loans.

Commercial Mortgage-Backed Securities (CMBS)

The CMBS type of mortgage-backed security, in which the collateralized mortgages are for commercial properties.

Commercial Paper

Also called negotiable instruments, commercial paper is any type of agreement, contract or provision that has a tradable or marketable value. For example, promissory notes, bonds, letters of credit and securities are considered negotiable instruments, because they can be re-sold and traded.

Commercial Property

See the Commercial Real Estate entry.

Commercial Real Estate

The term commercial real estate applies for any property used for commercial purposes, such as hotels, offices, malls and stores. For the residential mortgage market, it is any apartment building that has five or more units or any property that has at least one unit being used for commercial (storefront, offices, etc.) purposes. However, most lenders do differentiate between an apartment building and a true commercial property.

Commercial Zone

An area that is zoned for commercial properties and commercial usage.

Commingling

The act of commingling refers to the mixing of funds from different sources or of funds intended for different purposes. Agents are prohibited from commingling their personal funds with the escrowed or deposited funds of their clients or customers. For example, real estate agent and attorneys must keep earnest money deposits in a separate account from their business and personal funds.

Commission

With the real estate transaction, the real estate agent or broker normally receives a commission of 5%-7% from the seller. In some cases, the buyer will pay commission to a buyer’s broker. Loan officers may also received commissions, expressed as loan points, from the borrower.

Commitment Fee

The commitment fee is a payment to a lender so as to secure a pledge of funds. This is normally charged to maintain a loan approval for an extended period of time. Most loan approvals are valid for only 30-60 days. If the borrower requires a longer commitment period (such as with a construction or rehab), the lender may sometimes charge a commitment fee, as the lender must tie up and commit these funds for the applicant.

Commitment for Financing

The commitment for financing (also called the loan commitment) binding promise from the lender that the applicant has been fully approved and that funds will be loaned according to the agreed terms and conditions. The applicant, however, will have no obligation to accept or close a mortgage loan-under penalty – unless the applicant has accepted and signed the loan commitment.

Common Area

For commercial properties, the common area is the space not directly occupied by the tenants. With condominium properties, the common areas consist of the spaces owned jointly by all the unit owners, through the condominium association. These common areas include hallways, driveways, clubhouses and community rooms.

Common Area Maintenance (CAM)

The CAM, or common area maintenance, is the provision in a lease agreement that requires the tenant to pay a share of the maintenance expenses for the common areas. This is a common requirement with retail malls and complexes.

Common Elements

With condominiums, common elements refer to real property portions of the condominium that are jointly owned by all of the unit owners, primarily through the homeowners association. In addition to common areas (such as hallways and lobbies), common elements typically include the land underlying the building and the mechanical (plumbing, electrical and HVAC) systems that run throughout the building.

Common Interest

With condominiums, common interest refers to the undivided ownership that each unit owner has in the common elements.

Common Interest Subdivision

With subdivisions, condominiums and planned unit developments (PUDs), a lot or portions of the subdivision may be owned by the individual unit owners as common areas.

Common Law

The theory (and practice) of law originated in England and used by the United States federal government, as well as almost all of the states. Common law gives weight to customs and judicial precedence, so that judicial rulings are guided by the rulings before them unless a new law or precedence is set.

Communism

As it affects real estate, communism has traditionally held that ultimate and often technical ownership of land and other real property is held by the state government.

Community Development Block Grant (CDBG)

A direct investment program of the federal government, the Community Development  Block Grant (CDBG) provides funds to local and state governments for a variety of programs that fit within the general purpose of the grant.

Because it is a block grant, the funding agency (the U.S. Department of Housing and Urban Development) does not identify specific projects for which the funds must be used. The department leaves it up to the receiving municipality, county or state to use the funds as they deem best, as long as it is for local community development efforts, with a focus on fighting poverty, increasing the supply of affordable housing and providing assistance to low- and moderate-income individuals in their communities.