HOA’s assist owners by managing common property to ensure property values, provide services, and create a sense of community through amenities and social events. From functional to aesthetic decisions, having a fully-funded HOA is important for everyone in the community. At CORE Advisory Partners, we know that an HOA’s projects are a necessary expense for homeowners. CORE’s role is to arrange financing solutions that help alleviate cash flow pressures, allowing the HOA to maintain adequate reserves and function as desired.
As a nationwide HOA lending resource, comprised of financial and lending experts that support your unique industry needs, CORE Advisory Partners is proud to work with HOAs to secure the funding you need. Whether funding expansion or renovation projects, our team of dedicated professionals is here to help you find the right solution for your community.
Even if your HOA has adequate reserve funds, boards often avoid depleting it. A reserve fund is crucial in scenarios where there are unexpected expenses or emergency needs. Instead, the board might release funds from the reserve fund in smaller increments. This release means that improvement projects, repairs, or renovations may take a longer time to finish.
When you utilize HOA lending, you can address the community’s needs in a timely and cost-effective manner.
Lower Dues for Homeowners
From the perspective of homeowners, HOA loans are more manageable than special assessments. With the latter, homeowners are responsible for raising funds for their HOA’s planned projects. This additional expense can be burdensome and stressful for your community owner. With HOA lending, homeowners will still experience an increase in their monthly dues; however, this increase is relatively small in comparison to a special assessment.
Also, since HOA loans are paid over a specific timeframe, homeowners will only need to contribute for as long as they are living in the community. For example, if an HOA took out a 15-year loan, a family that only lives in their house for 10 years will only have to pay for those years. Payments for the remaining 5 years will then be passed on to the new owners.
A More Effective HOA Board
HOA lending also allows your board to be more effective. With enough capital in your HOA’s accounts, board members can facilitate planned projects as needed, such as maintaining infrastructure and community amenities. HOA lending can be used to meet municipality and socially responsible demands, such as the installation of artificial turf, irrigation reclamation, and leveraging of solar resources.
HOA lending can also be used for unexpected repair expenses created by natural or manmade disasters.
If the HOA board is able to effectively carry out their duties, homeowners will be able to see that the dues they pay each month are used for the betterment of the entire community.
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