We wanted to share a quick but important update that may impact condo owners, buyers and HOAs in the near future.
Freddie Mac and Fannie Mae recently announced new lending guideline updates for condo communities, with one of the biggest changes being an increase in required HOA reserve funding.
🏢 What’s Changing?
Beginning in 2027, condo associations will be required to allocate at least 15% of their annual budget toward reserves, up from the current 10% requirement.
This change is intended to encourage stronger financial health within condo communities and help avoid deferred maintenance issues long-term.
💡 What This Could Mean for Condo Owners:
• Potential HOA dues increases in some communities
• More scrutiny from lenders during condo financing
• Well-managed HOAs may become more attractive to buyers
• Some condo projects could face financing challenges if reserves are underfunded
• Potential for additional assessments if HOAs need to catch up reserves to meet the new requirement
• Buyers may pay closer attention to HOA financials moving forward
This doesn’t mean every condo community will be negatively impacted - but it does reinforce how important HOA financial health has become in today’s market.
As always, every building and HOA situation is different, and strategy matters more than ever. If you’d like to discuss what this could mean for your specific condo, future value, financing, or if you’re considering selling, give us a call anytime. We’re happy to walk through what to expect and help you plan ahead.
Nadia, Anne & Team
