In the wake of the 2021 Surfside condo collapse, Fannie Mae has ramped up its scrutiny of condominium developments, leading to a major expansion of its “Condo Unavailable Projects and Phases Report” — better known as the “blacklist.” This confidential document identifies condo and co-op buildings that are ineligible for Fannie Mae-backed loans due to concerns over safety, financial stability or legal entanglements. As of early 2025, over 5,000 properties nationwide are listed — with Florida seeing a noticeable impact.

Buildings can find themselves blacklisted for several reasons: deferred maintenance, structural issues, insufficient insurance, high delinquency rates on dues and increasingly, legal disputes. Pending litigation, especially lawsuits involving structural defects, financial mismanagement or major insurance claims, can trigger a project’s ineligibility. Lenders view active lawsuits as a red flag because they introduce uncertainty about the building’s financial future and the potential for costly assessments against unit owners.

The impact on buyers and sellers is significant. Units in blacklisted properties often become hard to finance through traditional means, forcing buyers to turn to private or portfolio loans with higher interest rates and tougher terms. 

Adding to the frustration is the secrecy around the blacklist — it’s not publicly accessible. Buyers and even some lenders may not discover a project’s ineligibility until late in the transaction. 

For anyone shopping for downtown St. Pete condos, it’s now more important than ever to investigate a building’s finances, maintenance history and legal standing before making a purchase.

Seller Tip: If you’re planning to sell your downtown St. Pete condo, consider getting the condo questionnaire completed before listing. It could help uncover any issues early and prevent surprises that might derail a sale later on.