Association Loans

We are a community of 40 units. The current problem is lack of reserves and 3 major repair jobs. Tis commnity has not had a success inf colecting special assessments. (Lack of an active knowledgeable self mangement board)

A bank loan will pay for the projects plus get a plan for establishing a reserve fund.

There is a concern that a loan willl interfere with the sale of units and a concern as to what the indiviual unit owner would be responsible for. This loan wwould be paid for out of the current dues.

What has been your experience with the opearation of an association or of units owners ability to sell units when there is an association loan?

Thanks

Doug Johnson

Douglas, are you having trouble pass a special assessement or are you having problems collecting an assessement?

This association has not pursued a vigorous policy of collecting assessments. That is one of the problems. In addition a speccial assessment would have to be paid immediately or it would not benefit us.

We have a new managment company and the new treasurer is pushing to get things done in a timely manneer

DRJ

Douglas,
It also sounds as if your association needs to have a round table discussion and possily appoint a couple knowledgeable owners to over sight all this. You might benefit from some drastic reorganizarion overhaul. With forty unit I would surely look a self management and save those costs. In any event you all will benefit from some good old fashion "Barn raisin" neighborhood effort. Hard to tell from your post if this is a troubling incident or do you all operate from crises to crises, and the faults are deeper. Self analysis might help.