Loans to Associations
The following information is generally required to process a loan request. When you are ready to move forward we can proceed with the items listed below:
- Financial Statements (balance sheet and income statement) for 2007, 2008, 2009 and YTD 2010
- Audited financial statements (if available)
- Tax Returns for 2008 and 2009
- 2010 Budget
- Purpose of the loan request including cost estimates or formal bids
- Contractor information (if already selected), anticipated start date and expected time to complete the project
- Requested payment term (ie. 10 years)
- Some information on the H.O.A.:
a. Nature of property, age, number of units, size of the units, range of unit values, location etc..
b. % of units owner occupied and % occupied by renters
c. Listing of owners with date of acquisition. Acquisition prior to 1/1/2002 can be identified as "prior to 2002"
d. Assessment information and history
e. Please provide a current aging of assessments receivable.
- If a special assessment will be needed to repay the loan request, has this been approved by the owners or the board? If it has been approved by the owners, how many voted for the special assessment and how many voted against it? What is the amount of the special assessment per unit and how long will it be in effect?
- Is homeowner approval required before a loan can be "authorized"? If so, where does the association stand in this process?
- Provide a copy of the last reserve analysis (a summary section is typically adequate).
- How long has your current management company managed the association?
- Please complete the "Loan Application". This will summarize quite a bit of the information requested above. CLICK HERE for the online Loan Application form.
