Homeowner and Condo Associations

HOAs: To Borrow or Assess...

Are your reserves insufficient for your capital needs? Here we are almost 6 months after Hurricane Ian and while things are settling down in some ways for SWFL, repairs are ongoing, supplies are low, and finances are tight. As a condo or homeowners association bank financing over time may be a good option versus a one-time special assessment. Gulf Coast Business Bank can help you get the funding you need to get through the repairs and restore your property.

HOAs are no strangers to capital improvement projects, but hurricanes are few and far between. Both projects and major weather events could require a large sum of money to repair or improve the property. We have created in-house loan and deposit products designed to aid in managing an association project or repair.

Associations have several options for both major repairs and capital improvements.
  • Reserve Fund: If you HOA is being managed well, there will be a reserve fund that can be used to finance capital improvements. However, a category 4 hurricane could cause an association to need more capital than planned.
  • Loan Options: Rather than drain the entire reserve fund, you can borrow capital that will enable residents to pay their dues without increasing their immediate outlay. When residents pay out-of-pocket expenses like assessments, they generally question how the allocation of the HOA reserves are handled.
  • Special Assessment: This is the least popular way or funding repairs. A special assessment should be the last option when trying to finance costly repairs, particularly if it is an emergency and/or unexpected repair. In addition to this, payments are not always on time and can slow the process of handling repairs.
Gulf Coast Business Bank has a team of extraordinary lenders who can help you understand what is involved in keeping your property a safe and great place to live and provide the tools you need to achieve your goals. Brian Munderloh bmunderloh@gcbbswfl.com; Donna Rambo drambo@gcbbswfl.com; Darren Kay dkay@gcbbswfl.com. Gulf Coast Business Bank supports the Southwest Florida community and local businesses. Visit gcbbswfl.com for more information or call 239-345-BANK (2265) to speak with a representative today.

Bill Blevins is President and CEO of Gulf Coast Business Bank (GCBB). Locally owned and operated by some of Southwest Florida’s most experienced bankers, GCBB is personally invested in the success of the community and its businesses. Through highly competitive and tailored products and services, state-of-the-art technology, and personalized banking decisions made locally, GCBB goes above and beyond to build a strong and consistently growing local economy.