As if there were not enough bad news for condominium owners already, there is the fact that tomorrow marks a mass expiration of Federal Housing Authority and Fannie Mae project certifications for condo projects across the U.S.
To combat the possible exodus of eligible condo buildings, National Condo Advisors, a Westchester-based firm that streamlines the FHA-approval process for developers and owners, is holding a 24-hour application marathon to push through the torrent of re-certifications.
Without certification from the FHA or Fannie Mae, many condo buildings may find it much more difficult to sell their units, but many aren’t even aware that the certification is expiring, said Orest Tomaselli, CEO at National Condo.
Tomaselli’s firm helps projects become compliant with guidelines such as those that require a building has reserve funds of as much as ten percent of their annual budget.
In the past, certifications for FHA and Fannie Mae backing never expired. However, in the wake of the sub-prime crisis, Housing and Urban Development tightened oversight, Tomaselli explained. Condos that had previously received unlimited certification had until December 7th, 2009, to re-apply was for two-year certifications. For this reason, thousands of buildings across the country will see their certifications expire all at once.
National Condo’s associates will literally be staying up all night to field inquiries regarding how a building can become compliant.
The firm has gotten more than 2400 projects approved nationally, Tomaselli said.
While National Condo has held approval events in the past, this year’s marathon could be particularly intense, said Tomaselli. “This one is pretty big,” he said.