JoeB18 (Georgia)
Posts: 31
Posts: 31
Posted:
How does a POA go about getting financing to put in a second pool and clubhouse. If we were an HOA how hard would it be to get financing?
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Additional amenities financing
Started by JoeB18 • 4 replies • 907 views
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CjC
Posts: 210
Posts: 210
Posted:
Our rules allow us to get financing and use assessments (as an example) as security for this. We are a large HOA and the local banks were all willing to make proposals recently. BUT check and see if you need member approval first to do this. In some instances you may not need approval to secure the loan but to actually spend it. We are not allowed to build a new amenity that is larger than x% of previous years total budget.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Quote:
Posted By JoeB18 on 10/12/2017 11:39 AM
How does a POA go about getting financing to put in a second pool and clubhouse.
How does a POA go about getting financing to put in a second pool and clubhouse.
Apply for a loan though a bank.
Special Assessments.
Quote:
Posted By JoeB18 on 10/12/2017 11:39 AM
If we were an HOA how hard would it be to get financing?
If we were an HOA how hard would it be to get financing?
As with any loan, it will depend on your finances.
Things like the percentage of late payers and how late are they.
Legal battles the Association may be involved in.
Reserve balances and percent funded.
SheliaH (Indiana)
Posts: 6,964
Posts: 6,964
Posted:
Good advice from CJC and Tim. I would add that once you do all the research on the financing, call a special meeting of the homeowners to present your findings so they can ask questions and perhaps debate if they even want another pool and clubhouse. Ultimately, all the money for this will come from assessments and homeowners need to understand that in order to pay for this stuff, plus take care of what's already there, AND fund reserves, they may be looking at some hefty increases over the next 10 years or more. If the majority say that's ok, get the best financing deal possible, but if not, you may need to reconsider the whole idea or perhaps dial it down (maybe you can make do with another clubhouse and skip the pool).
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
CjC
Posts: 210
Posts: 210
Posted:
Quote:
Posted By SheliaH on 10/12/2017 5:15 PM
Good advice from CJC and Tim. I would add that once you do all the research on the financing, call a special meeting of the homeowners to present your findings so they can ask questions and perhaps debate if they even want another pool and clubhouse. Ultimately, all the money for this will come from assessments and homeowners need to understand that in order to pay for this stuff, plus take care of what's already there, AND fund reserves, they may be looking at some hefty increases over the next 10 years or more. If the majority say that's ok, get the best financing deal possible, but if not, you may need to reconsider the whole idea or perhaps dial it down (maybe you can make do with another clubhouse and skip the pool).
Good advice from CJC and Tim. I would add that once you do all the research on the financing, call a special meeting of the homeowners to present your findings so they can ask questions and perhaps debate if they even want another pool and clubhouse. Ultimately, all the money for this will come from assessments and homeowners need to understand that in order to pay for this stuff, plus take care of what's already there, AND fund reserves, they may be looking at some hefty increases over the next 10 years or more. If the majority say that's ok, get the best financing deal possible, but if not, you may need to reconsider the whole idea or perhaps dial it down (maybe you can make do with another clubhouse and skip the pool).
Also in the meting you need to explain that if you do special assessment, you might need member approval for that. If you just increase your typical assessment, you may need approval for that.
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