The advantages of obtaining hoa loans to meet capital improvement needs include:
- If funds are needed immediately for a capital improvement project, a co-op loan can help avoid a one-time special assessment fee, which some unit owners may not be able to afford.
- A co-op loan may minimize increases to member assessments, spreading the repayment over a longer period of time.
- A co-op loan will allow the association to receive more competitive bids on improvements, since all the repairs can be done at the same time.
- A co-op loan can allow the association to maintain a healthy reserve account for other emergencies.
Thanks to these new co-op, condo and HOA loan packages, associations facing major capital improvements have other options for raising money instead of simply passing these unpopular assessment increases on to members.