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HOA Loans Offer Reserve and Assessment Alternative

stephen polinsky on Feb 9, 2009 2:02:00 PM


The Benefits HOA Loans and Condo Association Loans      
Upkeep and improvements to a condo association property are key to maintaining and improving its value. HOA and condo association boards have a fiduciary responsibility to repair depreciating structures and common-area facilities. What's more, homeowners, condo owners and potential buyers - want upgraded, more secure facilities. Our HOA loan program and condo association loan program has been designed with these unique needs in mind.


Needed work can be completed more quickly, as total HOA loan funds become available for use much faster than through the traditional HOA special assessment process. The financial impact on condo owners or homeowners can be reduced, as they can avoid making a lump sum special assessment payment. Condo owners and homeowners can pay their share of the HOA loan over time to reduce the impact on their personal finances. Choose from fixed or variable rate HOA loan programs, depending on which approach makes the most financial sense for your condo association's unique circumstances.    
HOA Loans Offer An Alternative to Spending Condo Reserves    
The capital outlay for major repairs and improvements can overtax a condo association's reserves, requiring condo assocation special assessments to pay for specific projects or to rebuild condo reserves. While special assessments may make economic sense, they also impose financial hardship on condo owners and may be difficult to get approved. Once approved, the condo association may have difficulty collecting payments from all its condo owners. Condo Board Directors may then defer maintenance work - although this can leave the condo board open to charges of negligence, particularly if there are health or safety issues involved. Or, they may try spreading the work out over time - which can raise the final cost of the work, as well as inconvenience residents.and condo owners.      
On the other hand, HOA Loans or Condo Association Loans for repairs or improvements makes all needed condo funds available more quickly. And since financing work through a HOA loan generally requires only a small increase in monthly HOA assessments to cover HOA Loan debt servicing, there are fewer objections from homeowners and condo owners.

Condo Association Loans and HOA Loans are quick way to fund association projects


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