CAI-NJ October 2025

Municipal Inspections Associations that fail to pass state, county, or other mandatory jurisdic tional inspections are not eligible for

Fannie Mae guaranteed loans. Building and Mechanical Inspections

Under the recent Structural Integrity Law, certain community association buildings must be inspected on a particular schedule. While Fannie Mae does not require an inspection to be completed for any development, if one has been completed within 3 years prior to the review date, then it must be reviewed. If the lender is unable to obtain the information to make a determination as to the con dition of critical repairs, the project is not eligible for Fannie Mae. Similarly to the issue with the new law, to the best of the author’s knowledge, under writers are not looking for state law compliance, but it is likely a matter of time before it becomes part of the process. Critical Repairs In its guidelines, Fannie Mae contin ually refers to the term “critical repairs,” but many boards and managers may not know exactly what this term means. By way of example, Fannie Mae refers to critical elements needing repair, which are those resulting in, “mold, water intrusion or potentially damaging leaks, advanced physical deterioration of load bearing structures, failure of roof, unsafe balconies, foundation, or parking structure issues, that if left uncorrected, could result in critical ele ment or system failure. Routine repairs are preventive in nature or part of normal capital replacements accom CONTINUES ON PAGE 26

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OCTOBER 2025