This episode features Daniel Mizrahi from Chase Bank and discusses significant changes to condo mortgage lending requirements in New York, primarily driven by the 2021 Surfside building collapse
The details may surprise you — though some of these updates make it more difficult to obtain financing, other updates make it easier. You’ll want to know these details!
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About the Host:
Christina Kremidas is a lifelong New Yorker who brings her extensive background in advertising to her successful real estate career in Manhattan. Her personal experience as a property investor and landlord in New York City gives her unique insight into her client's needs, while her negotiation expertise and market knowledge have quickly established her as a top-performing agent, ranking among the top 1.5% of licensed Agents in the United States for Sales Volume and among the Top 10 highest producing Small Teams at Douglas Elliman Real Estate.
Beyond her professional achievements, Christina is deeply involved in the NYC community. She is a founding Steward at St. Nicholas Greek Orthodox Church and National Shrine at the World Trade Center, where she serves on the Parish Council and leads social media, marketing, and young adult initiatives.
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Key Takeaways
Proactive building management matters: Banks now reward buildings with strong maintenance histories, proper budgeting, and compliance
records; waiting until problems become critical creates financing obstacles and depresses property values
Budget transparency is non-negotiable: Current-year operating budgets with 10% reserve allocations are now mandatory for condo
financing; buildings without budgets face lending denials regardless of other qualifications
Work with New York-based lenders: Condo and co-op financing requires local expertise; national lenders and brokers often misunderstand
NYC-specific requirements (right of first refusal, Local Law 11, co-op board dynamics) causing deal failures
Conditional commitments protect you: Ensure your lender provides conditional commitment letters with building approval still pending;
accepting willy-nilly commitment letters eliminates mortgage contingency protection and leaves you vulnerable
Higher maintenance = quality investment: Buildings with elevated maintenance fees often reflect proactive capital planning and safety
compliance; this indicates financial health, not poor management
Episode Highlights
00:02:15: Daniel Mizrahi introduces himself as a 15-year mortgage industry veteran with 10 years at Chase, specializing in home loans and real estate finance.
00:04:30: The Surfside building collapse in Florida catalyzed widespread regulatory changes, forcing lenders to scrutinize building maintenance, budgeting, and safety standards more rigorously.
00:08:45: "Limited review" has been eliminated; banks now require full financial review including 10% reserve fund budgeting for all condo projects, with requirements increasing to 15% in 2026.
00:12:20: Reserve requirements are calculated as 10% of annualized building income that must be allocated as a line-item expense, not just held in reserves.
00:18:30: Chase retained its own limited review process to accommodate New York market nuances while still requesting budgets and conducting thorough due diligence.
00:22:15: Local Law 11 designations (Safe, Unsafe, SWARM) now heavily influence lending decisions; banks require engineering reports and proof of proactive compliance.
00:28:45: The waiver of project review expanded from 4-unit to 10-unit buildings, significantly benefiting Brooklyn and Queens developers seeking faster financing.
00:35:10: Investor concentration limits have been removed; buildings can now have 90% investor-owned units without triggering financing restrictions.
00:42:20: Single-entity ownership limits remain (Fannie Mae 20%, Freddie Mac 25%, Chase Flex 30%) to prevent scenarios where one investor controls building operations.
00:48:50: Working with New York-based lenders familiar with condo/co-op dynamics prevents 11th-hour surprises and protects mortgage contingencies.
00:55:30: Conditional commitment letters with cleared conditions protect buyers; full building approval must occur before contingencies are satisfied.
