What happens when a community suddenly learns it has been placed on the Fannie Mae/Freddie Mac “blacklist”?

Across the industry, many have talked about the growing number of communities being placed on this list and the serious impact that follows. But there are very few real stories that walk through what actually happens next - the steps taken, the decisions made, and the actions required to get a community off the list.

That is what makes this interview so valuable.

Dave Rauch sits down with Vilamoura Community Manager Aly Dale and board member David Wolff to share the reality of discovering their community had been blacklisted and the urgent action they took to get off the list in less than a year. From navigating repairs and gathering critical documentation to addressing homeowner concerns and maintaining constant communication, they share what it took to move their community forward.

This is more than a success story, it is an educational tool for boards and community managers who may one day face the same situation, and a powerful reminder that with the right team, clear action, and follow-through, recovery is possible.

In the years following the tragic collapse of Champlain Towers South, the future of the property has been a sensitive topic for both the local community and the association industry.

The site was purchased in 2022, just one year after the collapse that claimed 98 lives, by Dubai based developer Damac Properties. Their plan is an ultra luxury oceanfront condo called The Delmore, with construction underway and a projected completion in 2029.

Fast forward to today, and while the project is moving ahead, it has not been without challenges. Sales launched in January 2025, but more than a year later, not a single unit has sold.

Residences start around $15 million for four bedroom homes, marketed as “mansions in the sky,” with some expected to go well over $100 million.

On paper, it checks every box. High end amenities, a private dining experience, a floating pool, and a meditation garden. It is built to be one of the most exclusive properties in the area.

But the reality is a little more complicated.

From the start, redevelopment of the site has been controversial. Many locals and families impacted by the tragedy feel strongly that the land should be a memorial, not luxury housing. That feeling, combined with the weight of what happened there, super high asking prices and some market hesitation, has made selling these homes a challenge.

It is a unique situation and a reminder that real estate is not just about location or amenities. It is also about history, perception, and how people feel about a place.

For boards and managers, the takeaway is simple. Properties carry more than financial value. They carry stories, and how those stories are handled can shape long term success.

Over the past several renewal cycles, one trend has become clear in the HOA insurance market: deductibles are rising dramatically.

Where $5,000 or $10,000 deductibles were once common, we are now routinely seeing $25,000, $50,000, and even $100,000 flat deductibles on master property policies. In some cases, per unit deductibles are also being introduced, significantly increasing an association’s out of pocket exposure after a loss.

For HOA boards, this represents a meaningful shift in financial risk.

Higher deductibles mean many losses, particularly water related claims, may never reach the insurance carrier. Instead, the association absorbs the cost directly. Even when a claim exceeds the deductible, the first layer of loss is borne by the community.

In practical terms, associations are retaining more risk than ever before. This is where maintenance becomes critically important.

Proactive maintenance can be the first line of defense against the types of losses that most commonly impact HOAs: roof failures, plumbing leaks, balcony deterioration, and water intrusion. The speed of response and the condition of infrastructure often determine whether a situation remains a minor repair or escalates into a significant financial event.

A delayed response to a plumbing leak can quickly result in multi-unit damage. Deferred roof maintenance can lead to recurring intrusion issues. Neglected waterproofing or balcony systems can create both property damage and liability exposure.

When deductibles are $50,000 or $100,000, these events are no longer just insurance claims... read more!

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Click here to learn more or contact Cory Neubauer directly at coryneubauer@nxtins.com.