Capital maintenance loans are available to condominium and homeowner’s associations to fund projects when there is a lack of adequate financial reserves. Whether you are a Property Manager, Board President or a service provider to a common interest community, there will likely come a time when there just isn’t enough money to fund the next big project. Inflation, failure to plan, unforeseen expenses and more can create a cash drain on even an otherwise successful community association. In the past, special assessments seemed to be the only way a community could quickly raise capital to fund these projects. Today’s savvy community association leader knows that a capital maintenance loan is almost always a better choice to fund such projects for so many reasons. HOALendingXchange can help!
Upfront benefits include the ability to act on behalf of the association as a whole rather than relying on the special assessment process of levying and collecting assessments. Owners within the association will be asked to increase their monthly payments instead of having to come up with a lump sum all at one time. This is more in line with how they pay for other expenses in the association and will not, typically, create an undue burden, unlike the special assessment which brings with it an ominous “pay now or else” collection approach. Once the capital maintenance loan is secured, the association can get on with the business of evaluating bids, hiring contractors, purchasing materials, and spending their efforts where it is most needed in bringing the capital maintenance project to successful completion. They can do so with the confidence that they have the ability to pay their vendors and suppliers, which savvy negotiators can even use to their advantage to get a better price.
The types of projects that are eligible for capital maintenance loans are extensive. They range from everyday items such as roof replacement to far more complicated projects like marina restoration. Capital maintenance loans could be used for sidewalks and walkways that need repair or a complete parking lot installation. The one thing all of these projects have in common is a large price tag. Even communities with healthy reserves should consider the value of financing their capital maintenance projects with a loan instead of draining the reserve fund. It allows the community to remain fiscally strong and complete its capital maintenance projects.
HOALendingXchange was designed with community associations in need of capital maintenance loans in mind. Our community association lenders are experts at working with community association leaders and designing capital maintenance loan programs that are right for them. Every community association loan we arrange is as unique as the community our banks loan to. We make it easy for communities to apply. To learn more and see if your community association qualifies for a capital improvement loan, get in touch with HOALendingXchange today!