Finance
A NJ condominium association that fails to maintain its reserves and has a high percentage of delinquent dues may find that:
AOnly existing owners are affected
BFHA and Fannie Mae may decline to approve or guarantee mortgages in the project, limiting buyer financing options✓ Correct
CThe NJREC will take over management
DNothing happens unless the building collapses
Explanation
FHA and Fannie Mae have strict condo project approval standards including reserve funding levels and delinquency rates. A poorly maintained association may lose FHA/Fannie approval, restricting buyer financing to portfolio lenders and limiting the market for resales.
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