Condominiums Downtown Los Angeles – Page 2

July 18, 2023July 18, 2023

Revealed: How Fannie Mae’s Latest Condo Loan Policy Shake-up Could Protect Your Wallet and Well-being!

Fannie Mae Introduces Permanency to Condo Policy Updates. Loft Buyers Need to Know How to Overcome Unique Mortgage Hurdles

REAL ESTATE NEWS (Los Angeles, CA) — The U.S. Federal National Mortgage Association, better known as Fannie Mae, has recently confirmed updates to its policies surrounding condominiums and co-operatives, as announced in an email communication and followed by an article published on MPA Mag. The updates address various concerns related to projects with deferred maintenance, special assessments, and even some safety concerns, which had previously been only temporary provisions.

In a move that reflects the evolving landscape of condo ownership and financing, Fannie Mae is making many of these temporary provisions permanent. These provisions are designed to manage risks associated with aging infrastructure and financial instability in condominium and co-operative housing projects.

A Focus on Safety and Sustainability

The updates were first introduced on a temporary basis in 2021, with an aim to tackle the pressing issues of condo and co-op project safety and sustainability. This move came as a result of increased concerns over the aging infrastructure of such residential complexes, an issue that has been rising to the fore over recent years. Reports have suggested structural challenges have been leading to evacuations and condemnations in certain cases.

With the risk associated with these infrastructural challenges becoming more apparent, Fannie Mae has taken steps to implement the previously temporary provisions as part of its updated policies. This transition to permanency underlines the significance of these issues and Fannie Mae’s commitment to addressing them.

Addressing Deferred Maintenance and Special Assessments

The updated policies are designed to handle projects that need critical repairs, those having material deficiencies, and special assessments for projects consisting of five or more attached units. Essentially, Fannie Mae is prioritizing the safety, soundness, structural integrity, and habitability of condominiums and co-operatives and their amenities.

In order to accomplish this, developers are now required to disclose any required critical repairs and significant deferred maintenance that could potentially affect the aforementioned aspects of a condo or co-op project. This move towards transparency can provide prospective buyers with a clearer understanding of what they’re getting into when purchasing a unit in these projects.

Moreover, the Government-Sponsored Enterprise (GSE) has decided not to purchase loans secured by units in condo and co-op projects that require critical repairs or have unresolved significant deferred maintenance, until the necessary repairs are made. This is a clear move to protect both the agency and borrowers from potential risks associated with such properties.

Furthermore, Fannie Mae has adopted a new policy that requires lenders to evaluate special assessments thoroughly. This includes analyzing the reason for the assessment and evaluating the capacity of the unit owners to make timely payments for the assessment.

Promoting Safe and Sustainable Homeownership

In a blog post on Fannie Mae’s website, Jodi Horne, the director of single-family collateral risk management, expressed that the updated condo and co-op requirements aim not just to protect lenders and Fannie Mae from a risk management perspective, but also to safeguard borrowers from physically unsafe or financially unstable projects. These unstable projects could lead to unexpected spikes in homeownership costs, which can put homeowners in precarious financial situations.

In conclusion, the updates introduced by Fannie Mae underscore the organization’s commitment to promoting safe and sustainable homeownership. By making these temporary provisions permanent, the agency is taking proactive measures to ensure that homeowners, developers, and lenders are all protected from potential risks associated with condo and co-op projects. This move is likely to shape the landscape of condo and co-op ownership and financing moving forward.

What are the requirements and details of FNMA financing for a condo? Are all structurally sound condos approved for fnma financing? How, when and why does a home buyer and mortgage loan originator use FNMA for a condo purchase loan?ChatGPT

Fannie Mae (FNMA), being a government-sponsored enterprise (GSE), plays a critical role in the mortgage market by buying loans from mortgage lenders, packaging them into mortgage-backed securities, and selling them to investors. This process provides lenders with the liquidity needed to keep providing loans to borrowers. For condo purchases, Fannie Mae sets specific guidelines for loans to be eligible for purchase. Loft buildings sometimes have a harder time meeting the requirements, but loft specialist lenders are familiar with the solutions.

Fannie Mae Condo Requirements:

While individual lenders might add their own requirements, Fannie Mae provides a standard set of guidelines that need to be met for a condominium to be eligible for financing. These guidelines include:

Project Completion: The project in which the condo is located must be completed, including all units and common elements.
Owner-Occupancy Ratio: Fannie Mae typically requires at least 50% of the units in a project to be owner-occupied. This rule can help ensure the stability of the condo association.
Delinquency Rates: No more than 15% of the total units can be 60 days or more past due on their condo association dues.
Insurance Coverage: The homeowners association (HOA) must maintain a master or blanket insurance policy that covers common areas. Individual owners must also have insurance for personal property and liability.
Budget Review: The project’s budget should be adequate to manage and maintain the property, with enough set aside for reserves.
Single Entity Ownership: No single entity (like a person or an investment group) may own more than 10% of the units in a project.
Legal Phasing: For projects with multiple phases, each phase must be legally separate with its own budget and financials.
Litigation: The condo association should not be involved in any litigation that relates to the safety, structural soundness, or habitability of the project.
Commercial Use: No more than 35% of the project’s total floor area can be used for commercial purposes.
Special Assessments: If there are special assessments, the lender must review them, including the reason for the assessment and the ability of unit owners to make timely payments.

Are All Structurally Sound Condos FNMA Approved?

Even if a condo is structurally sound, it doesn’t automatically mean that it will be approved for Fannie Mae financing. It must meet all the other requirements listed above.

How, When, and Why Use FNMA for a Condo Purchase Loan?

Home buyers and mortgage loan originators use Fannie Mae for condo purchases primarily when the condo meets all Fannie Mae guidelines and the buyer meets the borrower requirements set by Fannie Mae (such as credit score, debt-to-income ratio, etc.).

Home buyers may choose to use Fannie Mae-backed loans because these loans often come with competitive interest rates and can require lower down payments. Additionally, they may also offer more lenient credit requirements than other loan types.

For loan originators, selling loans to Fannie Mae allows them to remove the loans from their books, freeing up capital so they can make more loans. They can also potentially earn income from servicing the loan if they retain the servicing rights.

It’s crucial to note that if a condominium doesn’t meet Fannie Mae’s guidelines, it’s considered non-warrantable, and financing options can be more limited. However, some lenders specialize in non-warrantable condo loans, and alternative financing options might be available.

Are most condo loans FNMA? What percentage of condo loans are FNMA?

The exact percentage of condominium loans backed by Fannie Mae (FNMA) can fluctuate over time and is not publicly disclosed on a regular basis. However, it’s important to note that Fannie Mae, together with Freddie Mac, another Government-Sponsored Enterprise (GSE), is a significant player in the U.S. residential mortgage market.

Fannie Mae and Freddie Mac together own or guarantee about half of all mortgages in the United States, including a significant portion of condominium loans. The rest of the market consists of various other players such as the Federal Housing Administration (FHA), Veterans Administration (VA), private lenders issuing jumbo and non-qualified mortgages, and others.

Fannie Mae and Freddie Mac have traditionally been popular choices for financing condominiums due to their favorable terms, relatively low interest rates, and less stringent credit requirements compared to some other types of loans. However, they have specific criteria that a condominium project must meet to be eligible for their loans, which can sometimes limit their use in certain situations.

If a condominium project doesn’t meet Fannie Mae or Freddie Mac’s guidelines, it may be considered “non-warrantable,” and the availability of Fannie Mae or Freddie Mac financing for units in the project will be limited. In these cases, potential buyers might have to seek alternative financing options, such as portfolio loans from banks or other lenders.

Some loft buildings have issues that affect their qualification for financing. To avoid delays and loan failures, such as falling out of escrow, it is often advisable, sometimes a requirement, to use a loft specialist lender when financing the purchase of an industrial, historic conversion or live/work loft condominium. A free list of local loft lenders is available upon request. Fill out the online form:

<a href="https://laloft.wufoo.com/forms/s1wm7iwc02dtdlv/" target="_blank" rel="noopener noreferrer">Fill out my Wufoo form!</a>

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Text and photos created or modified by artificial intelligence. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

February 19, 2023February 19, 2023

HOA Management Companies Los Angeles

REAL ESTATE NEWS — For those who are considering purchasing a condominium, one of the important factors to consider is the role of the condo HOA ( homeowners association ) management company. Condo HOA management companies are responsible for overseeing the day-to-day operations of a condominium complex, maintaining common areas, and enforcing the community’s rules and regulations. In this blog post, we’ll discuss what condo HOA management companies do.

First and foremost, condo HOA management companies are responsible for maintaining the common areas of a condominium complex. This can include everything from landscaping to cleaning and maintenance of shared amenities like swimming pools, gyms, and community rooms. Depending on the size and complexity of the complex, a condo HOA management company may employ maintenance staff or contract with outside vendors to provide these services.

In addition to maintaining the physical property, condo HOA management companies are also responsible for managing the community’s finances. This includes collecting dues and fees from homeowners, paying bills and expenses, and creating and managing the association’s budget. The management company will also work with the board of directors to develop long-term financial plans for the community, including capital improvement projects and reserve funds for major repairs and replacements.

Another important role of a condo HOA management company is to enforce the community’s rules and regulations. This can include everything from parking rules to noise restrictions to pet policies. The management company will work with the board of directors to develop and update the community’s governing documents, which outline the rules and regulations that homeowners must follow. When a homeowner violates these rules, the management company will typically be responsible for issuing warnings and fines, and in some cases, initiating legal action.

Condo HOA management companies also play an important role in communication and community building. The management company will often act as a liaison between homeowners and the board of directors, helping to disseminate important information and updates about the community. They may also organize events and activities to help foster a sense of community among residents.

So, why are condo HOA management companies important? For one, they help ensure that the physical property is well-maintained and that the community’s finances are managed responsibly. They also help enforce the community’s rules and regulations, which is important for maintaining a safe and peaceful living environment. Additionally, condo HOA management companies can help foster a sense of community among residents, which can lead to a more enjoyable living experience.

For anyone considering purchasing a condominium, it’s important to understand the role of the condo HOA management company and to research the management company that’s responsible for the complex. Look for a management company with a good reputation for maintaining the property, managing finances responsibly, and communicating effectively with homeowners. Consider the fees associated with the management company, as these will be included in monthly dues.

Condo HOA management companies play an important role in overseeing the day-to-day operations of a condominium complex. They are responsible for maintaining the physical property, managing the community’s finances, enforcing rules and regulations, and fostering a sense of community among residents. By understanding the role of the management company, current and future home owners can ensure that they are making an informed decision and they’ll be happy with the living situation for years to come.

There are many HOA management companies in Los Angeles. Here are some of the top companies based on customer reviews and ratings:

Condo HOA Management – Specializing in smaller condominium communities with less than 50 units, Condo HOA Management offers a more customized service to better suit the needs of the home owners, while charging a lower monthly fee.
Keystone Pacific Property Management – Keystone Pacific is one of the largest HOA management companies in Southern California. They offer a range of services, including financial management, maintenance and repair services, and community governance.
FirstService Residential – FirstService Residential is a national company with a strong presence in Los Angeles. They provide management services to a wide range of communities, including single-family homes, townhomes, and condos.
Optimum Professional Property Management – Optimum Professional Property Management is a locally owned and operated company that has been serving the Los Angeles area for over 25 years. They offer personalized services to each community they manage, including financial management, maintenance and repair services, and vendor management.
Ross Morgan & Company – Ross Morgan & Company has been providing HOA management services in the Los Angeles area since 1985. They offer a wide range of services, including budgeting and financial management, maintenance and repair services, and community governance.
The Management Trust – The Management Trust is a national company that provides HOA management services in the Los Angeles area. They offer a range of services, including financial management, community governance, and maintenance and repair services.
Action Property Management — Popular among Downtown Los Angeles loft condos, a large, privately-owned homeowner association management company. Its size enables the business to match or exceed all of the resources of the biggest national companies.
Seabreeze Management Company — Also popular among downtown loft condo buildings, Seabreeze looks after over 90,000 commercial and residential properties every day.
Prime Association Services — Another company popular among downtown loft condo owners, Prime Association Services leads the way in professional leadership management specializing in new community developments throughout Southern California.

Here’s an example of a simplified HOA management contract:

CONDOMINIUM HOME OWNERS ASSOCIATION MANAGEMENT COMPANY AGREEMENT

This agreement (“Agreement”) is made and entered into on this day ________________, 2023, by and between the Owners Association (“Client”) and Condo HOA Management (“Manager”).

Appointment of Manager — Client hereby appoints Manager as the exclusive manager of the condominium association owned by Client (the “Association”), and Manager accepts such appointment and agrees to provide all management services necessary for the operation of the Association.
Scope of Services — Manager shall provide the following services to the Association:

Collecting and depositing monthly HOA fees and other assessments
Maintaining accurate accounting records for the Association
Preparing and submitting financial statements and reports to the Association on a monthly basis
Coordinating and supervising maintenance and repair of the common areas
Arranging for necessary insurance coverage and claims processing
Responding to owner inquiries and complaints in a timely and professional manner
Preparing and distributing meeting agendas and minutes of all Board and Annual meetings
Conducting site inspections
Performing other duties as assigned by the Board of Directors

Term of Agreement — The term of this Agreement shall be for an initial period of three (3) years from the date of execution of this Agreement, and shall automatically renew for successive one-year periods thereafter unless terminated by either party by giving 90 days written notice prior to the end of the then-current term.
Compensation — Manager shall be paid a monthly management fee of $600 for the services rendered under this Agreement. The fee shall be due on the first day of each month.
Indemnification — The Client agrees to indemnify and hold the Manager harmless from and against any and all claims, damages, liabilities, and expenses arising from Manager’s performance of its duties under this Agreement, except to the extent caused by Manager’s gross negligence or willful misconduct.
Governing Law — This Agreement shall be governed by and construed in accordance with the laws of the State of California.
Entire Agreement — This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications, agreements or understandings, whether written or oral, relating to the subject matter of this Agreement.
Amendments — This Agreement may not be amended except in writing signed by both parties.
Termination — Either party may terminate this Agreement upon written notice to the other party if the other party breaches any material term or condition of this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

Home Owners Association: __________________________

Condo HOA Management: ___________________________

Find out how much your neighbor’s condo unit sold for. Get a free list of recently sold properties, along with a list of currently listed homes for sale in any area. Fill out the online form:

<a href="https://laloft.wufoo.com/forms/m18s446g10idllz/" target="_blank" rel="noopener noreferrer">Fill out my Wufoo form!</a>

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker CalDRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

Share this:

Share this: