Condo Reserve Rules Change in 2027. Your Board Votes This Fall — and It's $42 a Month.

Your condo board is going to approve next year's budget sometime in October or November. One line on that budget decides whether the person buying your neighbor's unit can put a little down — or has to bring a pile of cash.On January 4th, Fannie Mae and Freddie Mac raise the amount a condo association has to put into reserves, from 10% of the budget to 15%. Same date for both. And it runs on application date, not closing date — which is the single most misunderstood part of this.Craig and Bill do the arithmetic on a real building: $2 million annual budget, 200 units. The gap between the old rule and the new one works out to about forty-two dollars a month per owner. That's the whole thing.The problem isn't the money. It's that boards adopt the budget before they hear about the rule, and once it's adopted it's locked for the year.IN THIS EPISODEThe two dates that matter — August 3rd, which already happened, and January 4th, which hasn'tWhy the short-form condo review is gone, and every established building now gets the full file pulled apartThe $42 math, worked out loudWhy a board hitting 10% exactly is the board most likely to get caughtWhat actually happens if your building misses it — the honest answer, not the scary oneThe one piece of good news: Florida's post-crisis penalty is finally goneThe worst possible moment to find out your building has a problemTHREE TAKEAWAYS, ONE FOR EACH OF YOUOwn a condo? Find out when your board votes on next year's budget. You almost certainly don't know, and it's the one meeting that affects your value most.On a board? You've got until roughly Thanksgiving. Don't guess at the number — not every line in your budget counts toward the calculation, and the ones that get excluded change the answer. Run it before you finalize.Buying or selling? It's the application date. An application dated January 3rd is under the old rule.FREE CONDO RESERVE CALCULATOR — no login, about two minutes https://cp-mtg.com/condo-reserve-requirements-2027/Or send us the building. We've hand-reviewed hundreds of them across Florida, and most of the time we can tell you the same day. Get the budget at the listing appointment, not on day 25.CHAPTERS0:00 The $42 nobody told your board about 1:05 Two dates: August 3rd and January 4th 1:40 Application date, not closing date 2:55 What changes: reserves go from 10% to 15% 3:50 What already changed in August: the short-form review is gone 5:28 The $42 math 7:24 Why not funding it is the more expensive option 8:00 Why most boards don't know — and why budget season is now 9:30 The trap: the boards that hit 10% exactly 11:39 The good news: Florida isn't being penalized anymore 16:10 What if your building misses it? 17:01 The worst possible way to find out 19:06 Three takeaways 23:04 Where rates landed this weekThe South Florida Mortgage Report — Craig A. Garcia, President of Capital Partners Mortgage Services, and Bill Mei.Capital Partners Mortgage Services, NMLS #2332376. Equal Housing Opportunity. NMLS Consumer Access: www.nmlsconsumeraccess.org This is general information, not a commitment to lend or an offer of credit. Loan approval is subject to underwriting and program eligibility.**Subscribe for weekly market updates** on rates, inflation, jobs reports, and what actually moves mortgage pricing. 📍South Florida focus — national relevance. 🎧 LISTEN & SUBSCRIBE TO THE SOUTH FLORIDA MORTGAGE REPORT 🔁 YouTube playlist (all episodes): https://www.youtube.com/playlist?list=PLCOa_zSrotiecbiomGKhTzASCBToYQUea 📱 Subscribe & follow on your favorite platform: • Apple Podcasts: https://podcasts.apple.com/us/podcast/south-florida-mortgage-report/id1834181574 • Spotify: https://open.spotify.com/show/5QxG2PzPd3W9pJFqQnLAPS?si=5a667fbd60a44ce9 ✅ Pre-Approvals 24/7: Get started anytime: ⁠ Option 1⁠ https://loancenter.cp-mtg.com/dr/c/rhx8h ⁠Option 2⁠ https://loancenter.cp-mtg.com/dr/c/w2o7v