The consequences of the tragic Champlain South Tower collapse in Surfside, Florida continue to be felt for many condominium associations and unit owners within the thousands of condominium and cooperative communities throughout Florida. For many older condominium and cooperative buildings in Florida and for those that expect significant expenses for deferred maintenance or which may have large special assessments anticipated or already in place, borrowing money to purchase units in these buildings is likely to become much more difficult. On October 13, 2021, Federal National Mortgage Association (“Fannie Mae”) issued Lender Letter (LL-2021-14), titled Temporary Requirements for Condo and Co-op Projects, imposing new “temporary” rules and restrictions pertaining to Fannie Mae’s purchase of loans from primary lenders on the secondary market. For the most part, these new requirements go into effect on January 1, 2022. The details and complexities of the secondary mortgage market are beyond the scope of this column. However, suffice it to say that without assurances that the mortgages backing the loans given by primary lenders (banks, credit unions, etc.) will be purchased on the secondary market (particularly by Fannie Mae), most primary lenders will not be financing home purchases. Under the new requirements, any loans that are secured by units with “significant deferred maintenance” or buildings that have received a directive from a regulatory authority or an inspection agency to make repairs due to unsafe conditions are not eligible for purchase by Fannie Mae and will remain ineligible until the required repairs have been completed. Further, any loans for units in buildings that have failed to pass local regulatory inspections or recertifications are, similarly, ineligible for purchase (e.g., the “40-year recertifications” required in Broward and Miami-Dade counties, and, recently, the 30-year recertification in the City of Boca Raton). Under the new requirements, “significant deferred maintenance” may mean any of the following: 1) full or partial evacuation of the building to complete repairs is required for more than seven days or an unknown period of time (unlikely for most buildings); or2) the building has deficiencies, defects, substantial damage, or deferred maintenance that:a. affect the safety, soundness, structural integrity,...