… Borrowing by Condo Corporations It is important for Board Members to know that proposals from different lenders will not always have the same parameters. When choosing a proposal, ensure you are aware of the differences and how those parameters interact with the specific circumstances or requirements of your condominium. It would be appropriate for boards to include their Reserve Fund Study Planner in the process of securing a loan and updating the Reserve Fund Study at the same time, even if it is outside of the requirement for a study to be updated. I met with the board again to share the proposals and to answer any further questions they may have on any of the proposals or the process. The Condo Board affirmed that the loan was a viable solution for their situation, chose a lender, brought the proposal and the borrowing bylaw forward to the information meeting for the owners to vote on and the loan was ratified. The Condo Board then proceeded with the commitment from the lender and legal loan documents were then transferred to the Condominium Corporations lawyer for preparation and signing by the Condo Board. Once all documents were completed and verified the funds were ready for dispersal. The Condo Board was impressed with the ease of the loan process and the quick turnaround time in which they were able to have the funds released to begin
repairs. Overall, the Board felt that borrowing was not as complex and difficult as they had envisioned or expected. In conclusion, here are a few other observations to consider; A major hurdle facing a Condo Board or their Condominium Manager in finding a borrowing solution for the Condominium Corporation is they discover that many banks or financial institutions in Canada are unwilling or unable to provide this lending due to the simple fact that common property cannot be put up as collateral. Lending to Condominium Corporations is a very specialized market and there are only a small number of institutions in the whole country that know how to do it and are willing to do it. Condominium Corporation loans can be a beneficial and workable resource for Condo Boards and Owners, who are faced with the difficult reality of Special Assessments when the reserve fund does not have the adequate amounts necessary to cover repair costs. Condo Boards and Owners want a solution that is easy to understand, easy to use and maintains or increases the equity value of their homes and the borrowing option can help produce that result. I hope that this article has been helpful & educational for you and I thank you for your time in reading it. — JW
THE CCI 9 TH ANNUAL GOLF TOURNAMENT IS ON – Sept 21 st , 2020
The Times They Are A- Changin’ Don’t delay! We are excited to be able to meet you at the Pine Knot Golf and Country Club.
FORMS for Player/Team Sign-up and Sponsorship opportunities can be found here
As you know, public health guidelines will be in place. Closer to the event team contact per- sons and sponsors will receive notice of those guidelines as well as other information in place at the time. In order for you to plan your timing though – the Shotgun start is at 11:00 a.m. The golf course has asked that golfers do not show up any earlier than 30 minutes be- fore the shotgun time. More to come!
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