Financing of New Roofs

Started by AndersH • 4 replies • 1046 views

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AndersH (Arizona)
Posts: 30

Posted:

I am a board member in our Arizona community which has 108 units in 27 buildings. We need new roof on 12 buildings but we have only reserves at this point for 6 buildings. One of the board members has suggested getting a loan for the other six. Is it common or even possible to get a loan for this. My thinking would be to have a special assessment if we really need all twelve roofs done at this time. Any comments or advise on this?

Anders

SusanW1 (Michigan)
Posts: 5,202

Posted:

How is it that your Reserve fund is so underfunded for roof repair/replacment?

Or is the extra 6 roofs due to emergency accident or damage/

RogerB (Colorado)
Posts: 5,067

Posted:

Anders,
We have an HOA with the same problem .. an HOA we took over management 16 months ago which has insufficient reserve funds to replace roofs. I don't like special assessments and even if the Board wants this it can be very difficult to get approval of the owners.

My approach was to have a reliable roofing company owner inspect all roofs and rate them 1, 2 or 3 with 1 needing replacement the soonest. Then started selectively replacing the roofs with the most serious problems while maintaining sufficient funds for any unexpected necessary large expenditures. It will take 6 years before all roofing and gutters are replaced.

BrianK1 (Colorado)
Posts: 54

Posted:

For the roofs rated 2 and 3 have there been any recent repairs or maintenance expenses and did the money for that come from reserves or the repairs budget?

RogerB (Colorado)
Posts: 5,067

Posted:

Quote:

Posted By BrianK1 on 02/20/2009 9:38 AM
For the roofs rated 2 and 3 have there been any recent repairs or maintenance expenses and did the money for that come from reserves or the repairs budget?

No. Cost of repairs has not be justified. When a roof leaks it is moved to the top of the list and is replaced immediately. If a repair is needed it will be paid out of the operating fund whereas replacement roofing and gutters come out of the reserve fund.

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