Fannie Mae and Freddie Mac issued new requirements to secure loans in condo buildings. The guidance relates to structural integrity and financial stability and is in response to the condominium collapse in Surfside, Fla., in late June.
Although it will likely take months or even years to determine the causes behind the Surfside, Fla., condo collapse, local and state governments are examining building codes, standards and practices, and other appropriate actions to improve structural safety.
Addressing unexpected maintenance often results in boards having to approve large special assessments, which can cause a financial strain to homeowners. A report from the Foundation for Community Association Research details why the unanticipated expense of repairing hidden damage can be so overwhelming.
Homeowners facing financial hardship due to the COVID-19 pandemic can benefit from an extension to the federal foreclosure moratorium and new rules limiting collections of delinquent mortgage payments.
Some community association boards have sought guidance about whether using reserve funds is appropriate to address potential cashflow issues caused by COVID-19. Here are some things to consider.
