New Federal Condo Rules Are Coming: What Buyers and Owners Need to Know

Big federal rule changes are about to hit condo buyers and owners nationwide — from stricter mortgage reviews to higher reserve requirements. Here’s what’s changing, plus this week’s Madison events, a maintenance tip, and a new rental listing

New Federal Condo Rules Are Coming — Here’s What to Know

Some big federal rule changes are about to hit condo buyers and owners across the country. If you own a condo, or you’re thinking about buying one, this is worth a read.

Reserve requirements are increasing

Starting January 2027, reserve requirements jump from 10% to 15% of the annual budget — that’s how much of an association’s yearly budget has to be set aside for future repairs. If a building has been underfunding its reserves (common in older buildings), this could mean real fee increases for current owners.

“Baseline funding” is being phased out

Associations can no longer keep their reserves “barely above zero.” Buildings now have to follow the highest recommended level from an actual reserve study (which cost associations a decent amount of money to do)

Smaller associations may be exempt

Associations with 10 or fewer units may qualify for a waived review altogether — so if you’re looking at a smaller building, this may not even apply to you.

Why this Matters

If an association is NOT compliant on these, a buyer would only be able to purchase a condo with an adjustable rate, not a fixed rate – this is a big deal for resale! If you own a condo, ask your HOA board where reserves currently stand. And if you’re buying one, this is exactly the kind of thing that can hold up — or kill — a closing if nobody checks it early. These changes could also slow down the condo market even more than it already is, causing a tangible drop in values, so if you’re planning on selling your condo, make sure to look into this and if you are looking to buy a condo, pay close attention to the associations budget, master insurance policy and where they stand BEFORE you get too invested in a specific property.

If you’re buying or selling a condo and want help navigating this, reach out — we’re watching this closely so you don’t have to!

RSVP: Day on the Farm — October 10th

Join us October 10th for our “Day on the Farm” event at Enchanted Valley Acres! A fun family event with food, activities, family photos, and on-the-farm fun. Event runs from 9am-1pm – just show up and enjoy the fun!

RSVP HERE!!!

This Weekend In Madison

• Troy Gardens Night — Sept 24, 4:30pm
• New Glarus Oktoberfest — Sept 24
• Book Sale — Sept 26, 9am
• Dinner Detective ($60) — Sept 26, 6pm

New Rental!!

Amazing rental opportunity for a multi-generational home! This home has a primary structure including 3 beds, 2.5 baths, an open kitchen, incredible dining space, a two-car attached garage, main-floor laundry, and multiple living spaces. There’s also an added mother-in-law suite with its own living space, gas fireplace, kitchen, bath, and in-unit laundry — giving separation from the rest of the home when needed.

This home sits in a very convenient location, just two blocks from a bus stop, with easy access to downtown Madison, nearby groceries, the Capital City Bike Path, and directly across the street from Heritage Heights Park. It’s ideal for a household looking to join together while still having the flexibility to keep some separation.

The home will be fully furnished, but arrangements can be made if that’s not needed prior to move-in. Reach out to schedule a showing!

View the full listing on Zillow

Andrew’s Home Maintenance Tip: Drain and Disconnect Outdoor Hoses

Before the first frost — which can arrive in Dane County as early as late September — disconnect all garden hoses from outdoor spigots and drain them completely.

Leaving a hose connected traps water in the line and can cause the pipe behind the wall to freeze and burst, even if you have a frost-free spigot installed. Store hoses indoors for the winter. This five-minute step can save you from a very expensive pipe repair in January.

Thank you! The referrals we get from friends, family, and past clients are what keeps our business growing, and we truly appreciate every introduction. Follow us on Instagram!