The new apartment saga continues. While our mortgage brokers and the bank lenders bicker about what forms we should or should not sign (all of which carry little real meaning), new regulations from Fannie Mae have thrown another wrench in the works of our new building.
The building was built with the first floor much larger than the upper floors. The first floor was intended to be large enough to hold a grocery store, or some other comparable commercial enterprise. Meanwhile, there's a two-level garage underneath the first floor. Compared to the upper floors, where the apartments are, roughly 60% of the floor area is commercial, leaving about 40% residential.
With the beginning of 2010 comes a new regulation stating that new condominiums cannot have more than 20% commercial space. Whoops.
Not sure where we go from here, but it looks like it'll be an interesting ride.
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2 comments:
If the building is already built, wouldn't it make sense to have new regulations not apply? :\
I would think so!
Turns out, it's fine with the federal regulators...but the banks that do the lending are uncomfortable with it. And they have the luxury of choosing whether or not they lend mortgages, so if the banks don't like it, it'll have to change. Somehow.
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