Condominium owners already face rising insurance costs, maintenance expenses, and association assessments, as discussed in our earlier article, Why Are HOA and Condo Assessments Going Up?. Now, new condominium lending rules taking effect January 4, 2027, could add to those costs and make some units harder to sell or refinance. According to a recent CNN article, condominium prices are falling in many markets, even as ownership costs continue to rise. The new rules include stricter condominium reserve requirements that could put additional pressure on association budgets. What Changes January 4? Fannie Mae and Freddie Mac, which play a major role … Continue reading
Tag Archives: Reserve Funds
Why Are HOA and Condo Assessments Going Up?
Two recent Wall Street Journal articles highlight a growing problem for homeowners associations and condominium associations. One reports that Fannie Mae and Freddie Mac are tightening reserve expectations for condominium projects. The other reports a significant increase in HOA-related foreclosure filings as Associations face rising expenses and more owner delinquencies. Those may sound like different stories. They are really parts of the same problem. Association expenses are increasing, while homeowners are increasingly concerned about how much they are being asked to pay. The Cost of Running a Community Is Going Up Insurance is one obvious example. The Wall Street Journal … Continue reading