HOA: Your Key to Property Management Banking
Community Bank has been serving the traditional banking needs of South Florida businesses and homeowners since 1973. What you may not know is our resources and experience extend to condominium and homeowner associations as well.
We make it easy to obtain loans to cover major repairs, improvements and other special assessments. The upside to partnering with us: Your association’s reserves remain intact, projects get underway and completed more quickly, and unit owners can stretch payments over many months, sometimes years.
Financing Special Assessments
Are your buildings in need of a facelift? Have your insurance premiums doubled? Did you have to spend money on unexpected repairs recently? Is your reserve account experiencing a shortfall? If so, we can help.
The greatest advantage to securing a loan from us to finance your assessment is that homeowners have the option of spreading out payments. It also means repairs or pet projects aren’t delayed until you‘ve collected the entire amount –– which could take years. Having the money in hand also gives you more leverage when negotiating repair contracts. And because we advance loan proceeds as work progresses, you pay interest only on funds advanced.
Factors Under Review
We take time to gather information that enables us to create a flexible solution for your association’s specific needs. We conduct an in-depth review of your association’s financial condition as well as consider the delinquency rate, condo documents, number of units, age of the development, unit value and management stability.
Terms and Collateral
As with any loan, interest rates vary based on the amount, repayment term and financial health of the association. The amount of deposits held by us is also a consideration.
Normally, no mortgages or liens are attached to units or common areas. Instead, we require assignment of the association’s accounts receivable and lien rights as collateral. However, the association is still responsible for collecting receivables, and pursuing delinquent accounts. The only circumstance under which we directly collect receivables is if the association defaults on the loan.
Documentation
To evaluate your lending request, please supply the following with your application:
- Association financial statements for the last three years as well as the latest interim period statement for the current year.
- Current accounts receivable aging, detailing aged collections of monthly association dues and special assessments, if applicable.
- Copies of bank statements for the last three months.
- Amount and repayment plan on special assessments over $100,000 during the last three years, if applicable.
- Complete copy of condo documents.
Flexible and Tailor-made
Financial needs come in all shapes and sizes. So do our loans. And to ensure you get the one that fits your association best, we use a simple, yet thorough, process to help clarify your needs. Then we create a customized solution to cover:
- New construction
- Renovation and repair
- Roof replacement
- Siding replacement
- Window replacement
Whether your association needs a loan for major repairs and improvements or a certificate of deposit, you can count on us. Call for a loan application today.
Association Loan Program Highlights
Terms
- Flexible terms up to 10 years
- No liens on individual units
- No personal guarantees
- No prepayment penalty, except if refinanced
- Up to 100% financing
Features
- We offer a fully amortized loan complete with a non-revolving line of credit.
- We advance loan proceeds as work progresses so you pay interest only on the funds advanced.
- Different types of loans are available and can be customized for your association.
Benefits
- Homeowners, who wish to avoid special assessment financing, have the option to pay cash.
- Our expert lenders are available to attend Board meetings in person or via conference call to explain loan features and benefits.
- Customized terms and conditions to match the needs of the association.