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Can board member provide our HOA with a loan?

Posted on Wed, May 05, 2010 @ 05:33 AM
  
  
  
  
  
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hoa loansMy HOA in California is carrying out some upgrades to our utility infrastructure that we expect will pay for themselves within a short time - 5 years or so. We'd like teh HOA to take out a loan to carry out the work. An officer of the HOA has offered to make the loan to the HOA on terms that are better than we've been able to find on the commercial market. Is this kind of transaction allowed?

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I would say that there is nothing wrong with this as long as the board approves the transaction according to the terms and that everything is legally done with a Title company.
Posted @ Wednesday, May 05, 2010 7:21 AM by wpage
I will recommend you to check with the HOA docs, state law and HOA attorney on how to write that loan (terms and conditions)
Posted @ Thursday, May 06, 2010 2:16 PM by Jose E. Humaran
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