Fort Lauderdale - 5 BIG CONDO CHANGES FOR 2027

by Craig Bujnowski

5 BIG CONDO CHANGES FOR 2027

1. RESERVES: 10% → 15%
Fannie Mae & Freddie Mac are raising the minimum reserve allocation from 10% to 15% of annual budgeted assessment income for applicable project reviews—a 50% increase in the percentage requirement. Effective Jan. 4, 2027.

2. HOA FEES COULD GO HIGHER
Buildings that aren’t contributing enough may need to increase monthly assessments or otherwise adjust their budgets to satisfy the new financing standard.

3. FINANCING = EVERYTHING
If a condo project doesn’t meet Fannie/Freddie eligibility requirements, conventional financing can become more difficult. That potentially means fewer financed buyers and a heavier dependence on cash buyers.

4. RESERVE STUDIES MATTER MORE
A qualifying reserve study can be used instead of the standard percentage calculation, but the budget must fund the study’s highest recommended reserve allocation. Fannie also eliminated the weaker baseline funding approach for this exception effective Aug. 3, 2026.

5. CONDO BUILDINGS COULD SPLIT INTO WINNERS & LOSERS
Well-funded + well-insured + financeable buildings should have an advantage in buyer demand and resale liquidity. Buildings facing large assessments, deferred maintenance or financing problems could face more buyer resistance. Fannie says insufficient insurance and critical repairs are already leading reasons projects receive ineligible status.

The Investment Takeaway

LOWER: Newer construction + potentially less near-term capital pressure.

MODERATE: 20± year-old buildings — reserve study becomes critical.

HIGHER: Older towers where reserves, structural work, insurance and assessments deserve serious due diligence.

Important: does not mean the building fails Fannie/Freddie requirements. A 50-year-old building with excellent reserves could be in better shape than a 20-year-old building with poor reserves.

Disclaimer: This chart and analysis does not indicate specific building financial risk or risk profile for the new Fannie/Freddie requirements. Simply meant as a potential guide for further review of building financials due to age of the building.