been at zero RUL for at least one year.
Fannie Mae requires that every association allocate at least 10% of its budget for its reserve account. Freddie Mac also requires 10% of the budget to go towards reserves unless there is an updated reserve study that supports contributing less, and the association is following the recommendations of the updated study. It is not unheard of for a board of directors to consider managing assessment increases by allocating less funds to the reserve account than is stipulated in the reserve study. This practice is even suggested by some association managers. This will likely become a less feasible solution as new lending
An association that is not following reserve expert recommendations could severely limit access of potential buyers to loans.
An association that is not following reserve expert recommendations could severely limit access of potential buyers to loans, which could ultimately impact overall property value. Lenders who provided information for this article suggest that special assessing would generally requirement. Special assessments are still advisable/ acceptable to fund urgent projects related to life-safety where funding is otherwise unavailable.
Resale Documentation
Reach out to your reserve consultant and attorney to make sure all budget, inspection disclosure, and reserve study documentation is correct and in line with each association’s governing documents. Now is a great time to align with your real estate disclosure team or service to make sure they have the records and resources they need to handle what are likely going to be more questions from real estate agents and lenders. Work with your teams to refresh yourself on what should and shouldn’t be said to whom about the resale documentation. Remember, the goal of all of these changes is based on consistent and reliable funding of maintenance for critical elements and recommended repairs to increase building safety.
LET REALMANAGE TAKE CARE R
OF YOUR COMMUNITY
We’re not just a management company We’’re your partner in creatinging communit
not just a management ny.. We’re your partner community.
Get Started Now!
Started
RealManage.c
e.com | 866) 403
(866 403-1588
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32
