Community associations in California are staring at skyrocketing insurance premiums. Some are facing increases of as much as hundreds of thousands of dollars per year. Community finances are being strained and, in some cases, it’s become impossible for new buyers to secure mortgage lending.
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.
Fannie Mae and Freddie Mac recently made changes to their lending requirements for condominiums in vacation areas and resort-like communities, but the process may be opaque and difficult to dispute by a homeowners association and its residents.
