How to Fill Out Fannie Mae Form 1076: Condominium Project Questionnaire

To fill out Fannie Mae Form 1076, the Condominium Project Questionnaire, work through its seven numbered sections in order using the HOA’s governing documents, current operating budget, reserve study, insurance certificates, unit ownership roster, and any active litigation files. The form is completed by the HOA board or its management company at a lender’s request, and the lender uses your answers to decide whether units in the project qualify for conventional financing. Individual unit owners do not fill it out themselves.¹

Before you write anything, understand what the form does. Every answer is checked against a threshold in Fannie Mae’s Selling Guide. Cross one of those thresholds and the lender cannot sell the loan to Fannie Mae without additional review or a waiver, which usually means the deal collapses. Freddie Mac publishes the same document as Form 476, so one accurate copy typically satisfies both agencies.¹

Documents to Pull Before You Start

Have these in front of you before opening the PDF:

The declaration, bylaws, and any recorded amendments
The current annual operating budget with the reserve line item
A reserve study, ideally within the past three years
Certificates for the master property, general liability, fidelity, and flood policies, with carrier names, policy numbers, and coverage amounts
A unit ownership roster showing who owns what, whether units are owner-occupied, rented, held by the developer, or held by the HOA, and which owners hold more than one unit
A current delinquency report identifying every unit 60 or more days past due on assessments
Documentation of any pending or threatened litigation, with your attorney’s contact information
A list of any current or planned special assessments, with amounts, terms, and purposes

Pulling this material once, in one sitting, is far less painful than hunting for it question by question.

Section I: Basic Project Information

Enter the project’s legal name, physical address, the HOA name if different, and tax identification numbers for the HOA and the management company. Note any master or umbrella association the project belongs to.²

The section closes with a checklist covering hotel or resort activities, rental pooling, deed or resale restrictions, manufactured homes, mandatory fee-based memberships, non-incidental business income, and supportive or continuing care services. Answer these honestly. Checking a box does not automatically disqualify the project, but several of these features can render it ineligible, and the lender will investigate any “yes.” Understating a rental program or a mandatory club membership is the kind of error that surfaces during underwriting and unravels every loan in the pipeline.

Section II: Project Completion Information

State whether construction is 100% complete, whether additional phases or annexation are planned, how many phases have been completed versus planned, the total number of units planned, and whether all amenities and common facilities are finished.²

One question in this section carries outsized weight: whether the developer has transferred control of the HOA to the unit owners. Projects still under developer control face additional eligibility requirements, so if you’re at or near that transition point, the exact status matters. If control passed at the last annual meeting, say so and be prepared to point to the minutes.

Section III: Newly Converted or Rehabilitated Projects

Skip this section unless the building was converted from another use, such as a rental apartment building turned condo, within the past three years. If it was, provide the original construction year, the conversion year, whether the conversion was a full gut rehabilitation, whether the structure is sound with adequate remaining useful life, and whether safety-related repairs are complete. Also state whether replacement reserves have been allocated and whether they are sufficient for the improvements.²

A conversion that was not a full gut rehabilitation, in a project with more than four units, must be routed through Fannie Mae’s Project Eligibility Review Service (PERS) rather than a lender-level Full Review.³ Your answers here tell the lender which track they’re on.

Section IV: Financial Information

Three questions, all consequential.

Delinquencies. Give the exact count of unit owners who are 60 or more days delinquent on common expense assessments. Pull this from your current aging report, not from memory. The 15% cap is one of the most common reasons a project fails review, and rounding down to make a building look better is a recipe for later problems.³

Successor liability for delinquent assessments. State whether a lender that acquires a unit through foreclosure would be responsible for the prior owner’s delinquent assessments, and for how long. This answer usually comes from state law and the declaration; if you don’t know it cold, ask HOA counsel rather than guessing.

Litigation. If the HOA is a party to any active or pending lawsuit, mark yes, attach documentation, and give the attorney’s name and contact information.² Not every case makes a project ineligible. Fannie Mae’s ineligibility rule targets litigation that relates to the safety, structural soundness, habitability, or functional use of the project, plus pre-litigation activity like arbitration or mediation that is reasonably expected to become formal litigation.⁴ A slip-and-fall claim by a visitor or a contract dispute with a landscaper is a different category from a construction-defect or water-intrusion suit. When you can’t tell which side of the line a case falls on, disclose it and let the underwriter decide. Omitting it is the worse mistake.

Section V: Ownership and Other Information

This is the longest section to fill out, and the numbers must reconcile with each other. Build two tables from your ownership roster.

The first is a unit table: total units, units sold and closed, units under contract, and units occupied by owners, second-home buyers, investors, developers, and the HOA itself.² The category totals should equal the project total. If they don’t, find the missing units before you submit.

The second is a multi-unit owner table: every individual or entity that owns more than one unit, whether they are the developer or sponsor, how many units they own, the percentage of the project those units represent, and how many are leased. Fannie Mae’s cap on single-entity ownership is 2 units in projects of 5 to 20 units, and 20% in projects of 21 or more units, with vacant units the developer is actively marketing excluded from the count.⁴ Run the math before you write the answers.

Finally, if any units are used as commercial or non-residential space, list the type of use, the number of such units, and their square footage as a percentage of the project’s total above- and below-grade square footage. The commercial-space ceiling is 35%.⁴

Section VI: Insurance Information and Financial Controls

Start with the flood questions: whether the project sits in a special flood hazard area, and if so, the flood policy details.

Then work through the financial controls checklist. Confirm that the HOA maintains separate operating and reserve accounts, that access controls exist for each, that the bank sends monthly statements directly to the HOA, that two board members must sign checks drawn on the reserve account, and that the management company keeps separate records and accounts for each HOA it manages.² If any of these controls are not in place, answer accurately. This is also a prompt to fix the gap before the next questionnaire arrives.

Next, enter carrier names, policy numbers, and coverage amounts for the hazard, liability, fidelity, and flood policies. Copy these straight from the certificates; do not paraphrase.

The reserves and deferred maintenance questions follow. State whether the project has had a reserve study within the past three years, the current reserve account balance, whether a funding plan and schedule exist for deferred maintenance, and whether there are current or planned special assessments, including the total amount, the terms, and the purpose. If the HOA has borrowed money to finance improvements or deferred maintenance, give the amount and repayment terms.²

Confirm your reserve allocation meets the 10% floor before responding. The lender will divide your annual budgeted reserve contribution by your annual assessment income; a current reserve study showing adequate funded reserves can substitute for the percentage test if your ratio is tight.³ If you raised assessments recently without proportionally raising the reserve line, that ratio may have quietly dropped below 10%.

Section VII: Contact Information

The person completing the form signs off with name, title, phone, email, company name, company address, and the date. Whoever signs is taking responsibility for the accuracy of the answers, so the preparer should be someone with actual knowledge of the project, not a clerical proxy. An addendum follows the main form for supplemental project data.

Thresholds Your Answers Will Be Measured Against

Know these numbers before you finalize your responses. Any one of them, crossed, can block conventional financing on every unit in the building.

No more than 15% of units may be 60 or more days past due on HOA assessments. The 15% cap applies separately to each special assessment.³
For investment property loans in established projects, at least 50% of total units must have been conveyed to principal residence or second-home purchasers. The rule does not apply when the loan being originated is for a primary residence or second home.³
The annual budget must allocate at least 10% of assessment income to replacement reserves, unless a reserve study demonstrates adequate funded reserves.³
Commercial or non-residential space cannot exceed 35% of the project’s total above- and below-grade square footage.⁴
Single-entity ownership caps: no more than 2 units in projects of 5 to 20 units; no more than 20% in projects of 21 or more units. Vacant developer units actively marketed for sale are excluded.⁴
Non-incidental business income from public-facing amenities or services cannot exceed 10% of budgeted HOA income.⁴

Answers That Make a Project Ineligible Regardless of Numbers

Some responses do not sit on a spectrum. If any of the following apply, the project is ineligible for Fannie Mae financing:

Pending litigation, arbitration, or mediation involving the HOA or the developer that relates to the safety, structural soundness, habitability, or functional use of the project.⁴
Repairs that significantly affect safety, structural integrity, or habitability, including material deficiencies that could cause system failure within a year, mold or water intrusion, advanced physical deterioration, failed mandatory inspections, and any unfunded repairs costing more than $10,000 per unit that should be completed within the next 12 months.⁴
Any termination, deconversion, dissolution, or bankruptcy proceeding.⁴

Answering honestly when one of these applies will likely kill the pending deal. Answering dishonestly exposes the HOA and its officers to liability, because lenders conduct their own due diligence and misrepresentations surface.

Habits That Make the Next Questionnaire Easier

Keep a master copy on file. Once you complete a full Form 1076, save it with the supporting documents — budget, reserve study, insurance certificates, ownership roster. When the next lender request arrives, you can refresh the changing figures and issue the abbreviated Form 1077 rather than starting over.⁵

Watch the delinquency count between requests. If the building is close to 15%, targeted collection work before questionnaire season can preserve financeability for every owner in the project.

When a litigation question is a close call, disclose and attach. The underwriter is the right person to decide whether a matter is safety-related within Fannie Mae’s definition. An omission that later comes to light is worse than a disclosed case the lender ultimately clears.

Fannie Mae’s Selling Guide describes Form 1076 as optional and permits a “substantially similar form” in its place, but most lenders use it because it maps directly to the eligibility criteria they must verify.⁶ Treat the form as the checklist your project is actually being scored against, and fill it out with that in mind.

1
Freddie Mac. Condominium Project Questionnaire – Full Form
2
Fannie Mae. Form 1076 Condominium Project Questionnaire
3
Fannie Mae. Full Review Process
4
Fannie Mae. Ineligible Projects
5
Community Associations Institute. Fannie Mae and Freddie Mac
6
Fannie Mae. General Information on Project Standards