Financial Issues, Budgets & Reserves

Preparing an annual budget is essential for the financial stability of community associations. However, not all associations know how to effectively create an association budget. To help you with this task, here are some guidelines that will make preparing your budget a straightforward process:  Create a Budgeting Committee: While it’s the board’s responsibility to create the budget, assembling a committee…

Community Associations play a vital role in managing and maintaining the shared assets of their members. However, ensuring the safety and longevity of these properties requires meticulous planning and budgeting. In response to the tragic incident at Champlain Towers South, the Community Associations Institute (CAI) has taken decisive steps to promote safer and financially sound buildings. CAI’s newly released Reserve…

The Surfside condominium collapse led to significant reform in the condominium lending industry.  In Lender Letter LL-2021-14, Fannie Mae and Freddie Mac implemented temporary lending guidelines in 2021 for condominium purchasers that desired to secure a mortgage as was previously discussed in Prepare your Condo for the new Fannie Mae and Freddie Mac Lending Requirements.  At the request of FHFA,…

In regards to the Champlain Towers condominium collapse, Fannie Mae and Freddie Mac have updated their 2022 lending guidelines.

The Veterans Benefits Administration of the Department of Veterans Affairs (the “VA”) is a function of the United States government intended to help the country’s veterans and servicemen.  One of the benefits provided by the VA is the VA home loan guaranty program.  Through VA direct home loans and VA-backed home loans, the VA loan program is intended to make it easier for veterans, servicemen and their survivors to borrow enough money to buy,…