Fannie Mae and FHA (Federal Housing Administration) have passed increasingly strict lending guidelines on condominium financing. Of particular concern to the associations and trusts for potential buyers is the capital reserve account. A condominium capital reserve account is an emergency fund set aside for major capital common area repairs and expenses, such as a leaky roof, a new boiler system, or other major structural issues. In established condominiums or trusts, some have already set up a healthy capital reserve fund, while others have little, if any, capital reserve money set aside. 10% of the Annual Operating Budget FHA is now the strictest lending program for condominiums and trusts.
Owen Ahearn's Blog
I am a national expert legal witness who regularly writes about many topics including: Reasonable Standards of Care, Premises Liability, Property Management, Real Estate Management, Residential Management, Commercial Management, Vacation Management, Property Maintenance, Real Estate Management, Management Neglect, Maintenance Neglect, Condominium Associations, Home Owner Associations, Public Housing, Public Housing Maintenance, Public Housing Management, Snow Management, Ice Management, Snow Removal, Smoke Detectors, Carbon Monoxide Detectors, Security Cameras, Security Systems, Board of Health Issues, Bed Bugs, Exterminations, Fires, Floods, Burst Pipes, Slips and Falls, Walkways, Decks, Railings, Parking Lots, Parking Lots Maintenance, Covid19, Corona Virus and other topics.