In the wake of the collapse of a condominium building in Surfside Florida last June 24, 2021, that killed 98 people and destroyed homes, Fannie Mae and Freddie Mac have released stricter requirements for condominiums and cooperatives projects. It was also due to growing concerns regarding the maintenance and safety of aging infrastructures.
The tragedy happened due to several reasons according to preliminary investigations and these are design failure, low-grade construction, and lack of adequate and routine maintenance. Accordingly, the consultation of the Miami Herald with engineers and a general contractor revealed that there were design flaws and structural weaknesses which also played a part in the collapse.
A 2018 report by Engr. Frank Morabito was also released by the Surfside Officials on June 26, 2021. The report detailed the substantial structural damage to its pool deck and underground parking area. The tragedy alarmed industries and stakeholders about the dangers of aging infrastructures and properties with critical deficiencies.
Fannie Mae or The Federal National Mortgage Association and Freddie Mac or Federal Home Loan Mortgage Cooperation are government-sponsored entities established to create a secondary market for residential mortgages.
As a result of the tragic collapse, both government entities have issued guidelines regarding the additional requirements for mortgages obtained for condominiums and cooperative residential units. These new requirements might make it harder for unit owners or new buyers to obtain mortgages.
Remaining compliant with Fannie Mae and Freddie Mac is crucial for community associations and cooperatives. They can comply by hiring a NJ structural engineer that can perform inspection and evaluation.
Having a property condition assessment in NJ can also help identify any structural deficiencies and to assist associations in performing their due diligence in having the necessary knowledge regarding a building’s structure.
Learn more information by reading this infographic from Lockatong Engineering discussing stricter Fannie Mae and Freddie Mac requirements