Published in Real Estate Agent Magazine
In an article published on June 17 in Real Estate Agent Magazine, VF Law Partner Quinten Cupps discusses how evolving Fannie Mae and Freddie Mac lending requirements are affecting condominium associations, board decision making, financing eligibility, and property values. He explains why condominium associations should evaluate reserve funding, insurance coverage, governing documents, and deferred maintenance now to preserve marketability and long-term viability.
“Meeting these lending restrictions and requirements for certification has a direct impact on the marketability and value of condominium units,” Cupps explains. “As a result, condominium associations and their boards of directors should review these changes and determine what adjustments, if any, need to be made to ensure compliance and to keep the project eligible for this financing.”
Cupps outlines several upcoming changes, including the end of Limited Review eligibility for established condominium projects, increased reserve account allocation requirements, and revised insurance rules. Boards may need to revisit budgets, consider assessment adjustments, review insurance policies, and evaluate governing document amendments.
“Associations and the unit owners can benefit from staying in compliance with the Fannie Mae and Freddie Mac lending requirements, and doing so will help soften this blow, but compliance alone is no longer sufficient,” writes Cupps. “Proactive capital planning, governing document modernization, and honest assessment of deferred maintenance are now essential to preserving property values and market viability.”
Read the story in full; click here.