Misconceptions sometimes exist among association boards, management and homeowners when it comes to association lending. We get it – it can seem daunting at first for a community to consider taking on large debt. Smart and responsible borrowing can deliver flexibility and opportunity for the community associations you manage, and Alliance Association Bank is here to help every step of the way.
Benefits of Smart Borrowing
-Distribute Association Costs-
Distribute the cost of large expenses or long-term project costs over time to lessen the immediacy of the financial need.
-Spread Out the Financial Impact to Homeowners-
For many homeowners, paying their portion of a large or unexpected association expense may not be feasible. Community association lending can help ease the financial impact for homeowners, spreading the cost out over time.
-Complete Projects at Today’s Prices-
Inflation significantly impacts the cost of future expenses and projects. Association loans may be used to pay for project costs and labor – at today’s current rates – saving the association money over the long run.
-Bridge the Financial Gap-
For an association who may not be fully funded, their reserve account may not cover the entire cost of the project. This may severely limit the association’s ability to complete the project, all while maintaining services and amenities and continuing to meet the existing financial obligations of the community. Association loans can help bridge this gap.
-Showcase the Board’s Effectiveness-
You’ve heard the saying “when it rains, it pours.” The same can happen within community associations. With enough capital available from association lending, board members can carry out planned projects to better the community, all while staying nimble enough to shift priorities if needed.
Not all lenders are created equal – and not all understand the unique nuances of working with community associations. Alliance Association Bank provides flexible and creative solutions for community associations.