CAI-NJ October 2025

RESALE GUIDELINES... from page 25.

on Fannie Mae Form 1076. Lenders may use various iterations of the form to obtain the information needed to comply with Fannie Mae guidelines. It is often asked by community associations whether the questionnaire needs to be completed. While the forms and information are tech nically not legally required to be provided, nonetheless,

plished within the project’s normal operating budget or through a special assessment and are similar to proactive maintenance repairs and a delay in the repair would not

result in critical element or system failure.” It should be further noted that Fannie Mae will not deem a project eligible that has unfunded repairs totaling more than $10,000 per unit. Fannie Mae defines “unfunded” as the association “does not have the funds in place to pay for the repairs and must postpone the remedia

lenders must obtain the necessary infor mation Fannie Mae requires for the loan to be guaranteed. While parties with an

“Fannie Mae will not deem a project eligible that has unfunded repairs

interest in the transaction such as the real estate agent, seller, buyer, or unit owner may also provide the documentation, the end result is that if a lender

totaling more than $10,000 per unit.”

tion. It is acceptable if the association imposes a special assessment or obtains a loan to fund the repairs. However, if the special assessment is related to safety, soundness, structural integrity, or habitability, all related repairs must be fully completed.” Form 1076 Questionnaire The inquiries most lenders use to obtain the foregoing information come by way of a questionnaire, modeled

is not provided with the information it needs, the associa tion will be disqualified from funding by Fannie Mae and will be placed on the ineligible project database. It can be a daunting task for an association to be requalified, which is beyond the scope of this article. However, boards and managers are cautioned in answering the lender questionnaire without guidance from their legal counsel, engineer, or other qualified profession

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OCTOBER 2025