Fannie Mae Updates PCA Guidance on Problematic Materials

On February 13, 2025, Fannie Mae issued updates to their Multifamily Guidelines, Appendix G, that identifies and addresses known problematic building materials and property design issues when performing a Property Condition Assessment.

In the Agency’s notification 25-02, Form 4099.G, the following electrical panels have been added to the list of problematic materials and must be recommended for replacement as an immediate repair when discovered as part of a property condition assessment:

1. Zinsco or GTE-Sylvania Panels – Installed in the 1970’s, these types of panels are a known fire hazard. Zinsco panels have brightly colored breakers and are thinner than current ones. Zinsco panels have design flaws that can cause them to continue conducting electricity even when the breaker appears to be off.  This defect causes circuits to melt instead of shutting off power safely, causing fires due to excessive heat.
2. Challenger Electrical Panels – These were sometimes labeled as Zinsco and were produced in the 1980’s and 1990’s and were widely installed in new construction. Properties that were built between this time may still have these installed. Challenger Electrical Panels are also known to cause fires, caused by the panel overheating and melting the circuits and panel.
3. Bulldog and ITE-Pushmatic Circuit Breakers and Electrical Panels – Pushmatic panels were widely used from the 1950s to the 1980s. They are a distinct panel that stands out as the only electrical brand without switches that flip left and right. A particular Pushmatic hazard observed is breaker internal jamming. When the breaker was pushed to switch to the OFF position, the breaker remained “ON” internally, risking fire or fatal electrical shock to building occupants or to electrical workers.

In addition to the three panels identified above, the Federal Pacific Stab-Lok Circuit Breaker Panels remain on the Form 4099.G list. These Stab-Lok Circuit Breaker panels were installed between 1950-1990 in area homes and properties. The panels contain breakers which may not trip and therefore do not adequately prevent electrical overloads. The words “Stab-Lok” will generally be stamped on the face of the panel behind the door, or on the door itself.

All four of the electrical panels listed on Form 4099.G fail to meet current standards and are considered obsolete. While not commonly used today, if these panels are discovered during an assessment, their replacement must be included in the immediate repair table.

Any Fannie Mae Multifamily lender who has initiated a PCA on or after February 13 will need to comply as well as for any PCAs initiated prior to that date but not yet completed.

As always, for the most recent guidance, refer to the Fannie Mae Multifamily Guide including Notification 25-02R and updated Form 4099.G, dated February 13, 2025.