In July, Fannie Mae and Freddie Mac introduced updates to project eligibility standards for condominiums and housing cooperatives in the United States. 

As of 2023, Fannie Mae and Freddie Mac support roughly 70% of the mortgage market, making their standards crucial for condominiums and housing cooperatives. The new requirements, set to take effect on September 18, have significant implications for these community associations.

The changes will necessitate thorough documentation, including insurance policies, budgets, financial reports, reserve studies, and more. Failure to provide this information as requested by lenders could render a project ineligible, potentially causing financial difficulties for the association.

Find the key highlights of the updated standards here.

Brainy Board is a free virtual boot camp geared towards community association board members. KSN attorneys will teach the essentials to running a successful board.

Saturday September 23rd, 2023
8:30AM to 10:30AM CST
Virtual - Zoom

During this 2-hour boot camp, KSN’s experienced attorneys will review board member responsibilities related to rule enforcement, litigation, meetings, and voting in condominium, homeowner, and townhome community associations.Member Boot Camp.

Register here. 

Every community association has owners who violate the association’s community guidelines. To ensure harmony and cohesiveness, the board of directors must enforce the restrictions outlined within the guidelines. 

However, too often, avoidable mistakes occur during the enforcement processs. These mistakes can affect the board and management’s credibility within the community and create unnecessary tension and hostility.

Check out these tips for enforcing community association restrictions.

A number of buildings have been affected recently by heavy storms and rain. Many climatologists believe that as a result of climate change, more frequent, severe weather will be part of our lives going forward.

As a result, everyone from realtors, homebuyers, and insurance companies to managing agents, board members, and attorneys are now grappling with how to protect properties from future storms. Condominiums, cooperatives, and homeowners associations have the same concerns.

Some boards have also had to answer questions about whether their associations are required to make certain weather-related repairs, or whether those repairs are the responsibility of unit owners.

Check out these 10 steps that condos, co-ops, and homeowners associations can use to be better prepared for the next weather disaster and potentially sidestep some of the headaches that can result.

Condo associations/HOAs in the state of Illinois are required, by law, to carry specific types of insurance. Where it often gets confusing to many homeowners and board members is who is responsible for the deductible when a claim occurs – the association or the unit owners?

Unfortunately, there is no cut-and-dry answer because it all depends on how the by-laws of the association are written. But if damage originates from or affects only certain units, the deductible may be charged back to those units.

Find examples and learn more, here.