RESERVE FUNDING
• Financial Operations • Governance • Green Communities • Maintenance • Natural Disasters • Reserve Funding • Strategic Planning • Transition
Condominium Lending Eligibility and Reserve Funding Resources For associations seeking additional information regarding reserve funding requirements and condo- minium project eligibility for mortgage financing, the following resources provide the most current guidance from Fannie Mae and Freddie Mac: Fannie Mae • Project Eligibility Requirements (B4-2.2) – Overview of condominium project review and eligi- bility requirements. • Full Review Process (B4-2.2-02) – Includes guidance regarding reserve funding requirements and the calculation of the 10% reserve contribution threshold, including certain income cate- gories that may be excluded from the calculation. Freddie Mac • Guide Section 5701.5 – Condominium Project Requirements – Eligibility requirements for established condominium projects. • Guide Section 5701.6 – Condominium Project Review Requirements – Requirements and review standards for condominium project eligibility. Important Note: Fannie Mae and Freddie Mac periodically update their selling and servicing guides. Associations, reserve study professionals, managers, and lenders should consult the current versions of these documents to ensure compliance with the latest requirements. This report is intended to provide industry guidance and best practices and should not be interpret- ed as legal, lending, or underwriting guidance. Associations should consult qualified legal, reserve, lending, and financial professionals when evaluating compliance with Fannie Mae, Freddie Mac, state statutory requirements, or lender-specific eligibility standards.
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