Freddie Mac Issues Condominium Flexibility Bulletin

May 12, 2020
Freddie Mac
Sellers may now use various sources of project data in lieu of project documents from homeowners associations.

 

Freddie Mac Issued Bulletin 2010-11, which gave temporary flexibility for some condominium requirements. From the Bulletin “Sellers have reported that some Homeowners Associations are experiencing a delay in ratifying their 2020 budgets because they are unable to meet in person to vote on a new budget. When an Established Condominium Project review is used, we will accept the budget from the 2019 fiscal year when the current year’s budget has not yet been ratified due to issues related to COVID-19. This flexibility may not be used for New Condominium Project reviews. Sellers are reminded that all other applicable requirements must be met, including requirements relating to delinquent Homeowners Association assessments.

Due to the impact of the COVID-19 pandemic on many businesses, we understand that Sellers are having increased difficulties in obtaining Project Documents from Homeowners Associations and property managers. Sellers may use other sources of Condominium Project data to complete project reviews including, but not limited to, appraisals, MLS records, plat map/site surveys, public records, State laws or local ordinances, and tax searches. Additionally, there are various vendor products available that provide Project Documents and/or information regarding Condominium Project eligibility.”

Source: Freddie Mac