Articles

Using an HOA or Condominium Association Loan Makes Good Sense

HOA Loans or Condominium Association Loans offer an alternative to spending down reserve funds. Capital outlay for major repairs and improvements can quickly deplete a condominium association’s reserve fund, requiring special assessments to pay for specific projects or to rebuild reserves. Special assessments are always a possibility but they may impose financial hardship on condominium unit owners and are usually quite difficult to get approved. Of course, having a special assessment approved is only the beginning. Once approved, the association may have difficulty collecting payments from HOA members or condominium unit owners. The Board of Directors may then need to defer maintenance work which can leave them open to charges of negligence, particularly if there are health or safety issues involved. Alternatively, they may try spreading the work out over time. This practice can raise the final cost of the work, as well as inconvenience residents who will be living with the day to day reality of partially completed projects. Who wants to live in a construction zone?
So what is the best solution? An HOA loan or condominium association loan from HOA Lending Solutions provides quick access to the money needed for repairs or improvements. HOA residents and condominium unit owners benefit from not having to come up with large sums of money all at once. Generally, only a small increase to their common fees is all it takes for the HOA or condominium association to get the money it needs to function.