Fannie Mae and Freddie Mac, two government-controlled giants of the mortgage finance world, have been under federal conservatorship for nearly 17 years. But the idea of privatizing these entities is gaining traction again in Washington, D.C. This raises important questions about the potential impact on homeowners in Washington state. Why are Fannie and Freddie so [...]
Rising Association Fees: A Growing Concern for Washington State Condominium Owners Condominium owners in Washington State, like their counterparts in Florida, are grappling with the increasing burden of rising association fees. As buildings age, the costs associated with maintaining common areas, elevators, roofs, and other shared amenities inevitably soar. This trend is exacerbated by unexpected [...]
Securing a mortgage for a Washington condo requires more than just good credit and income. Fannie Mae, the major buyer of mortgages, has strict guidelines that impact loan availability. One key factor for Fannie Mae approval is the condo association's reserve study. A Washington state reserve study analyzes upcoming expenses for major repairs and replacements [...]
Fannie Mae and Freddie Mac have tightened their requirements for condo financing in 2024, especially regarding financial stability and reserve funding. Here's a breakdown aligned with your previous text: Condo Reserve Fund Standards: Minimum Reserve: While a 10% rule of thumb exists, Fannie Mae and Freddie Mac now require a minimum reserve amount based on [...]
We had a board member who called us with this question recently. The answer is Yes, in most cases, condominium/ homeowner association CC&Rs (Covenants, Conditions, and Restrictions) are legally binding. Here's why: Contractual agreement: When you purchase a condominium in a Washington State association, you agree to abide by the CC&Rs as part of the [...]
The governing documents of a homeowner or condominium association in Washington State are important legal documents that outline the rights and responsibilities of homeowners and the association. They are typically comprised of four main documents: Declaration of Covenants, Conditions, and Restrictions (CC&Rs): This document establishes the fundamental rules and restrictions that apply to all homeowners [...]
In many associations with the new year comes a new set of board members. In most associations there is no transition program and the newbies learn as they go. This can be problematic as many positions have responsibilities such as secretary or treasurer. Unless the senior members are proactive, then the new members have learn [...]
The Challenges of Raising Assessments to fund association reserves As a board president in Washington State, you've just discovered that your association needs $200,000 to replace the clubhouse roof due to a leak. Your operating budget has no contingency funds, and your reserve fund, which has not had an increase in many years, has a [...]
7 reasons to not ignore your condominium reserve study: Deferred maintenance: Without a reserve study, it can be difficult to budget for and plan for major repairs and replacements. This can lead to deferred maintenance, which can cause the condition of the condominium/ homeowner complex to deteriorate over time. Special assessments: If the condominium/ [...]
Aging Infrastructure in Condominium Complexes The Surfside Condominium collapse continues to resonate through the industry sounding the alarm about the health of building's infrastructure. Many boards are still operating in the dark underfunding reserves in the hopes that we won't have a failure. Other boards feel comfortable in having $100,000 plus in reserves that they [...]
