Fannie Mae, Freddie Mac won’t buy condo, co-op mortgages in community Associations in need of critical repair

Just before the Christmas holiday season, both Fannie Mae and Freddie Mac issued new “temporary guidance” for sellers of units in condominium and cooperative housing projects in the U.S.

On behalf of any buyer that’s planning to make a mortgage purchase of a unit, all condominium and cooperative HOAs must now disclose major deficiencies in the community, as well as any current or pending special assessments intended to pay for major repair and reconstruction. That guidance could be a game changer in the market for condos and co-ops.

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Will mandating Condo HOA Reserve funds help preserve safe Housing?

Demanding that HOAs save money for the future is just one part of the solution. In practice, a fully-funded reserve account is a solution that may be impractical or impossible to implement for the vast majority of existing HOA-governed communities.

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Beyond the condo collapse: NO HOA-Governed community is immune to infrastructure failure

As illustrated by several examples in this post, all types of HOA-governed housing — including low-rise condominiums, townhouses, and planned communities with single family homes — are seeing a rise in expensive and unexpected repairs.

A condo building collapse is rare, Deferred maintenance and owner resistance to fixing problems is not

As the recovery of victims of the collapse of Champlain Towers South condominium wraps up, and investigations of the cause or causes of the disaster begins, consumers must come to grips with the grim realities of common ownership.

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