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Michael Gao
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Looking for a conventional lender with experience in co-op projects

Michael Gao
Posted

I'm the seller of a condo unit in Houston and am actively looking for a conventional lender (Fannie/Freddie) who has experience with co-ops or condos that have non-standard HOA insurance structures.

We have several interested buyers, but the deal has hit friction due to the HOA's master insurance structure.

Insurance structure:

  • HOA carries a master property policy written on a replacement cost basis

  • The policy is part of a pooled master program that insures multiple unaffiliated condo associations, $100M per occurrence limit with a $401M total statement value, insuring 27 associations. The COI specifies a $22.2M limit for the project, but also notes The Property Insurance Limit shown above is subject to an Occurrence Limit of $100,000,000 to be shared by all Locations included within this Master Insurance Policy. This is a Master Policy which includes Multiple Unaffiliated Properties

  • Coinsurance is waived

  • HOA has reserve funding and assessment authority

Can anyone help?