Florida Condo Rules and a Tax Ballot Measure Could Shift Who Can Buy Your Home

Florida's housing affordability crisis is pushing two major policy fights into the open, and both of them have direct consequences for anyone trying to sell property in the state. The Florida Association of Mortgage Professionals (FAMP) is actively lobbying to delay a federal condo reserve requirement and backing a statewide property tax amendment — and the outcomes of each will affect how many qualified buyers show up when you list.

The Federal Condo Rule That Could Shrink Your Buyer Pool Starting in 2027

The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, has made two consequential decisions for Florida condo sellers. First, it eliminated the so-called "limited review" process for condo loans — a streamlined financing pathway that allowed many buyers to purchase units in buildings that couldn't pass a full structural and financial review. That pathway is now gone nationwide.

Second, FHFA is requiring condo associations to hold reserves equal to at least 15% of their annual budget, up from the current 10%, with the new threshold taking effect January 1, 2027. These changes come on top of reforms already imposed after the 2021 Surfside collapse, which forced many Florida associations to raise HOA fees or levy special assessments just to meet the existing 10% floor.

FAMP President Orlando Diaz, a 30-year Florida mortgage professional, has been direct about what the reserve jump means in practice: condo buildings that can't certify compliance will be ineligible for standard conforming loans. Buyers who would have qualified for a Fannie or Freddie mortgage with as little as 5% down would instead need to pursue non-qualified mortgage lending, which typically caps loan-to-value ratios at 90% — meaning a larger down payment, a higher interest rate, and a harder qualification threshold. Fewer buyers able to finance your unit means more downward pressure on what you can ask for it.

The compounding risk is timing. Many condo boards, particularly in older buildings, may not yet be aware of the 2027 deadline. Sellers and their buildings could discover the compliance gap only when a deal is already in contract and a buyer's financing falls through.

What FAMP Is Asking For — and the Odds It Gets It

FAMP is working alongside the National Association of Mortgage Brokers (NAMB), the National Association of Realtors (NAR), and Florida Realtor groups to push the FHFA on two specific requests: restore limited review for at least six to eight additional months to allow for education and further lobbying, and push the 15% reserve deadline back from 2027 to 2028.

Diaz puts the odds of success at roughly even — not guaranteed, but not a long shot either. FAMP is considering trips to Washington to make the case in person, and the group is separately exploring whether the Federal Housing Administration could approve more Florida condo projects for FHA financing, which would open a different financing channel for buyers who can't access conforming loans.

An extra year on the reserve requirement would give associations time to budget for the increase without emergency assessments. It would also give industry groups time to lobby for a permanent adjustment to the 15% threshold, which Diaz has said was already causing strain at 10%.

The November Property Tax Amendment: A Longer-Term Shift in Buyer Math

On the state level, FAMP is backing a constitutional amendment on Florida's November 2026 ballot that would phase out property taxes on a portion of primary residences by gradually raising the homestead exemption until qualifying homeowners pay nothing on that share. The measure requires 60% voter approval to pass.

The amendment includes a five-year residency requirement — meaning only Floridians who have lived in the state for at least five years would qualify. That provision is intentional: FAMP's Diaz noted that an immediate tax break for new arrivals could trigger another wave of migration and push prices even higher, particularly in mid-size markets like Cape Coral, Port St. Lucie, and Brandon that are already seeing price pressure from migration out of New York and other high-cost states. More than 870,000 people relocated to Florida in 2024, according to Census data.

For sellers, the amendment matters in two ways. In the near term, it changes nothing — the phase-in is gradual and tied to future residency. But if it passes, it signals a structural reduction in the carrying cost of Florida homeownership, which could sustain demand over the medium term even as mortgage rates remain elevated. Florida's statewide median list price is currently around $482,000, down roughly 2% year over year, and anything that makes monthly ownership costs more predictable tends to support buyer confidence.

What Florida Home Sellers Should Do Right Now

If you own a condo in Florida, the most important thing you can do before listing is contact your association board and find out where the building stands on reserve compliance. Ask directly: has the association commissioned a professional reserve study? Does the current reserve level meet the 15% threshold taking effect in 2027? If the answer is no — or no one knows — that is information you need before you sign a listing agreement, not after a buyer's loan falls through at the last minute.

Buildings that are already compliant have a legitimate selling advantage and should be marketing it. Buildings that are not compliant may face a window of reduced buyer competition, higher down payment requirements for purchasers, and the possibility of a special assessment that hits current owners before they can sell.

For single-family sellers, the condo rule changes don't apply directly, but the broader affordability squeeze does. Higher HOA costs, rising property taxes, and elevated insurance premiums are already factoring into what buyers can realistically afford in Florida's market. The November tax amendment, if it passes, could eventually ease that math — but it won't show up in buyer budgets for years.

If you're trying to assess what your Florida home is worth in this environment right now, a no-obligation instant offer gives you a data point that doesn't depend on how the lobbying in Washington resolves.