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 [...]
Underfunded Reserves in Washington State Condominiums Similar to the national situation, underfunded reserves are a major concern for condominium associations in Washington State. One key reason for this problem is that condo boards may have an overly optimistic or uninformed view of the true cost of maintaining their community's common areas. Here's a common misconception: [...]
Keeping Your Washington State Community Safe: Essential Deck and Balcony Inspections in Condominiums Condominium living offers a unique blend of comfort and convenience. Shared amenities like decks or balconies create a sense of community, but these outdoor spaces also require attention to safety. Regular inspections by qualified professionals are recommended. What the Inspection Entails: A [...]
There's a new law (Senate Bill 5796) that will significantly impact homeowners and condominium associations (HOA) throughout Washington. This bill rewrites the Washington Uniform Common Interest Ownership Act (WUCIOA) almost entirely. Formerly, HOAs follow different rules depending on when they were established. This new law proposes applying a uniform set of rules, the WUCIOA, to [...]
At first glance Condominium and Homeowners Association will see that the initial cost of a reserve study as expense. However, the long-term financial benefits for an association far outweigh that initial expense. Here are 5 examples of how a current reserve study can save your association money: Proactive Planning & Budgeting: A reserve study provides [...]
Review the contract: This is the governing document and hopefully the board closely examined it before it was signed. A good contract stipulates what each party's responsibility is. This will help you understand your rights and the contractor's obligations regarding work quality, timelines, and dispute resolution procedures. For example, if there is a cost overrun [...]
Even after careful selection, condo associations might encounter problems with a seemingly reliable contractor. While some projects face genuine challenges, repeated issues could signal deeper problems with the contractor's competency or management. Here are 5 red flags to watch out for: 1. Supply Chain Issues: This excuse, while relevant during the pandemic, is fading as [...]
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 [...]
As of today, January 2024, the latest guidance from Fannie Mae and Freddie Mac on condominiums involves their updated project review requirements that came into effect on September 18, 2023. These policies were established in response to the tragic Champlain Towers South collapse in Florida and prioritize project financial stability and structural integrity. Here are [...]