By Rafael Aquino

Published January 26, 2022  


Changes are coming to condo associations, and this recent update by Fannie Mae and Freddie Mac to its underwriting policies is a clear indication of that. Soon the days of loans being provided to owners without confirmation of the association's financial position will be gone.


The only way to understand where an association stands financially is by assessing its current position. Below, I've provided a couple of steps I recommend associations go through to know where they stand financially. 


  1. Liquidity - Every association should have a minimum of two months of assessments in their operating account. 

  2. Reserves - The only proper way of understanding how much you should put away each year is by having a Reserve Study. If you don't have one, I strongly urge you to obtain one immediately.  

  3. Hurricane Deductibles: Assess how much the association will be responsible for if a storm hits and determine if enough reserves are allocated. 

  4. Potential Projects / Improvements - Does the association have improvements or alterations it plans on doing that is not outlined in the Reserve Study? If so, what is the expected cost?  


Once you have the above figures, it will give you a better picture of the association's financial position. You can formulate what steps can be taken to improve the economic situation or plan what steps will be taken to manage the situation, loans, special assessments, etc.   


This information should not be hidden from the owners even if it's scary; the Board has a fiduciary responsibility to its owners to advise of both the good and the bad. The reality is that both owners and new buyers are getting more educated about living in an association. Those association boards that fall behind on the changes that are coming will see properties values drop. It will become challenging to obtain insurance if associations don't maintain their buildings, and values will fall if new buyers can't get financing. 

HTML Comment Box is loading comments...




As the Co-Founder and CEO of Affinity Management Services, Rafael P. Aquino leads his team to redefine excellence. They serve community   associations   efficiently

and effectively with dedication and passion. Rafael’s energy and positive spirit is the foundation of Affinity Management Services’ company culture, which instills enthusiasm and excitement when providing expert advice to its board members and relieving the day-to-day burdens of running a community association.


Since 2007, Rafael has developed a work culture that values responsive and high-quality services. He has led his team by following a proactive vs reactive philosophy. The same approach Rafael instills in the day to day operations of each association. Today, Affinity Management Services maintains its success and benefits as a result of the foundation Rafael has built and continues to foster by providing educational seminars, continuing education classes for association managers and board members alike.

Rafael and his team help condominium and homeowners’ associations save money and improve their communities. His calm, personable, and service-oriented nature helps him to establish strong relationships with ease. Rafael is known as a sincere and honest leader who looks out for the best interests of his clients and communities, and he strongly advocates for their needs. His role requires coordination and communication, as such he takes logical and intelligent steps to approach challenges head-on.

As a graduate of Florida International University’s electrical engineering program and a licensed community association manager, Rafael’s education and skills equip him with unique insights to tackle complex problems through critical thinking. He understands how each component within a system works together in order to effectively arrive at solutions, techniques, and conclusions. Therefore, as he manages the multiple challenges of running a community association management company, he understands how each property is its own unique system and tailors’ specific services to assure that all their needs are met.

For more information about Rafael P. Aquino and Affinity Management Services please visit or call 1-800-977-6279

Doral Office: 8200 NW 41st ST

Suite 200

Doral, FL 33166

Broward Office: 150 S Pine Island RD Suite 300

Plantation, FL 33324

O: 800-977-6279 ● F: 305-325-4053

Sign up for Email Updates
For Email Newsletters you can trust