In response to the tragic collapse of a condominium in Surfside, FL, Fannie Mae and Freddie Mac enacted significantly updated lending requirements that became effective Q1 2022 for condominiums and co-ops throughout the United States.
This page is intended to be your definitive guide to Fannie and Freddie lender requirements for condominiums and co-ops that many associations, unit owners and management companies still struggle to understand and address.
While these lending requirements are temporary, they are on track to become permanent (in current or updated form) sometime in 2022. Please find below Fannie Mae Form 1076 / Freddie Mac Form 476: Condominium Project Questionnaire and Fannie Mae Form 1076A / Freddie Mac Form 476A: Condominium Questionnaire Addendum (see combined document) in addition to other helpful documentation.
Applies to multi-family residential properties with 5 or more attached units
>= 10% of the annual operating budget must be dedicated to funding the replacement reserve (suspension of Selling Guide flexibility)
All existing and upcoming / new special assessments will be reviewed to determine their origin, terms and potential negative impacts
Properties subject to repair mandates by a governmental authority are ineligible until repairs are complete and documented
Properties that have significant deferred maintenance are ineligible until repairs are complete and documented
Some common interest communities and their management companies are refusing to fill out the updated lender questionnaire from Fannie and Freddie.
Has your association and/or management company refused to complete the lender questionnaire?
If so, did you identify a 'workaround' -OR- did a refusal result in the abandonment of a real property transaction? COMPLETE THIS 60 SECOND SURVEY