Does your condominium association needs funds for a new roof or other big items

1. HOA / Condo Association Loans (Most Common)

These are commercial loans made directly to the association, not individual unit owners.

Typical uses

Roof replacement

Structural repairs

Painting, paving, elevators, plumbing

Insurance-driven or reserve shortfalls

Key features

No lien on individual units

Repaid through monthly assessments

Terms: 5–20 years

Fixed or adjustable rates

Can be structured as:

Fully amortizing loan

Interest-only period upfront

Line of credit for phased projects

Underwriting looks at

Number of units

Owner-occupancy ratio

Delinquency rate

Budget, reserves, and assessment history

No personal guarantees from owners

2. Special Assessment Financing (Owner-Friendly Option)

Instead of asking owners to write large checks upfront:

The association levies a special assessment

Owners can finance their portion monthly

Reduces resistance and default risk

Keeps unit owners on predictable payments

This is especially helpful in senior-heavy or fixed-income communities.

3. Reserve Replenishment Loans

If reserves were drained for an emergency repair:

Association borrows to rebuild reserves

Keeps the condo compliant with lender and insurance requirements

Helps protect unit values and marketability

4. Florida-Specific Reality (Important)

Given your frequent focus on Florida condos, this resonates strongly right now:

New structural integrity & reserve requirements

Insurance-driven roof timelines

Older associations facing multi-million-dollar projects

Financing often prevents forced unit sales or assessment shock

Many boards don’t realize financing is even an option until it’s explained clearly.

5. How to Position the Conversation (What to Say)

You can frame it simply:

“Rather than a large one-time special assessment, the association can finance the project and spread the cost over time—keeping dues manageable and protecting property values.”

That line alone opens the door.

6. What Lenders Will Usually Ask For

Current budget and balance sheet

Reserve study (if available)

Insurance certificates

Delinquency report

Project scope and contractor estimate

Bottom Line

Condo associations do not have to self-fund roofs or major repairs anymore. Financing:

Preserves cash

Reduces owner pushback

Helps boards stay compliant

Protects resale values


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