The board of my condo association is saying they don't have enough funds to make the necessary repairs across the neighborhood.
This is growing into a long list of repairs. They said they had some legal issues in the past years ,and bad debts they are dealing with.
They only have around 150k in reserves, and they said they must pay off bad debts first. As one example, one owner said he has had a leak in his condo for 2 years now which makes in inhabitable for tenants or anyone. He confronted the board again and they are delaying fixing this again.
I was shocked and couldn't believe it. If that happened to my condo, I would probably foreclose without rent for 2 years...scary.
Anyhow, I asked the board if they had considered getting an HOA loan which I've heard is sometimes a good idea if the community doesn't have money to fix necessary things.
Would this situation justify getting an HOA loan? I don't understand why the board is so against it. Won't the looming delayed repairs and possible law suits amount to the same amount of interest paid if they just took a loan out?
Please provide your input! I am very concerned and confused.
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