The industrialization of cities in New Jersey led to an increased number of commercial buildings around the state. Thesecommercial establishments open opportunities forenterprises to enter a strong market with high growth potential in the long run. This is why keeping the properties in excellent condition has been a priority for many building owners over the years.
Investing in a regular site inspection can help owners and tenants provethat the property is safe for use. Partnering with a structural engineer in New Jersey will allow building owners to check for possible flaws within the building, enabling them to take immediate action with repairs or renovations. Failure to monitor structural deficiencies with a building inspection engineer in NJ can lead to fatal accidents, such as the collapse of a condominium in the suburb of Miami last year.
Apart from highlighting the importance of having a regular building inspection, this accident also led to numerous changes in housing regulations, including mortgages. For instance, the Federal National Mortgage Association (FNMA – “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (FHLMC – “Freddie Mac”) released new requirements on mortgages related to condominium projects.
The new Freddie Mac bulletin states that mortgages sought in condominiums and cooperative projects that need critical repairs will be unqualified for sale to Freddie Mac. Meanwhile, the recent Fannie Mae’s Lender Letter also declared that they would no longer approveloans forcondominiums and coop projects that require significant building repairs.
To learn more about how the incident in Champlain Towers South resulted in stricter Fannie Mae and Freddie Mac requirements, check this infographic provided by Lockatong Engineering.
Paul Petersen