Loan Options for HOA Maintenance

5 Replies

Good evening! I own a condo in a building that needs about between $30,000-$40,000 for some work done on our roof. Rather than a special assessment, we're looking for financing options. I'm finding that because our loan amount is pretty small, there's several hurdles in obtaining this type of financing.

The building is located in Chicago.

Would appreciate any ideas. Thanks!

All the best,
Jonathan

If you're in a condo, the only collateral that the bank will loan against will be the cash flow from the association.  If your reserve contributions aren't at least 100% of what they should be, you may find difficulty in getting loans.  I'm surprised to hear that $30-40k is posing a problem.  Have you tried contacting multiple banks?

Originally posted by @Jonathan Pliszka :

Good evening! I own a condo in a building that needs about between $30,000-$40,000 for some work done on our roof. Rather than a special assessment, we're looking for financing options. I'm finding that because our loan amount is pretty small, there's several hurdles in obtaining this type of financing.

The building is located in Chicago.

Would appreciate any ideas. Thanks!

All the best,
Jonathan

 I know this was from months ago, but what did you guys end up doing?

I would like an update as well. It sounds familiar to my building. A $30k roof repair and we need financing because there's only $5k in the reserves. I'm the treasurer of the HOA as of April. Due to the former treasurer mismanaging funds and not being transparent, everyone voted her out and me into the role. She wasn't even paying the water bill. I'm here hoping to learn ways of getting the repair covered because I don't think each unit will be able to fork over $3k out of the blue for the roof damage, plus I sense we now have damage to the electrical system due to water leaks.

@Paul Brockmann @Ashley G.

Funny enough, this is still ongoing. It's looking more and more like each owner will be hit with a special assessment. Any financing options that we've found require a personal guarantee from an individual. Obviously none of the 18 owners are willing to step up.

Same here. We have members opposing the idea of the HOA taking on debt and others that don't understand they can go to banks to get a loan individually in the event this becomes a special assessment. Hopefully there can be a meeting of the minds.

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