Homeowner Association Consulting

BBF Resources is an independent consulting firm specialized in planning, financing, and managing special projects for condominium homeowner associations.

Most special projects require months of preparation in order to meet the various deadlines related to special assessments, owner meetings, and construction schedules. BBF Resources works directly with the Board of Directors of both self-managed and professionally managed HOAs to prepare for and then find the best possible funding source in the most efficient and cost effective manner. Once the project is funded, BBF Resources provides various levels of management support as an independent, third party professional service.



Homeowner Association Services

BBF Resources provides various consulting services for both professionally managed and self-managed associations including:

  • Pre-project evaluation of financial options

  • Path to financing plan

  • Co-ordination of professional team and their services

  • HOA Loan underwriting and loan acquisition

  • Special assessment and accounting setup and tracking

  • Owner’s rep project support

Other Services

In addition to working directly with homeowner associations, BBF Resources provides consulting services for:

  • individual condo owners facing special assessments

  • management companies with special projects

  • condo sellers to develop sale strategy

  • real estate brokers and their clients for pre-purchase condo evaluation


How does an HOA qualify for a loan?

Commercial banks who lend to homeowner associations have internal credit policies which define the criteria a borrower must meet in order to qualify for a loan. When the HOA applies for a loan, the bank evaluates it’s ability to meed their credit criteria. Since there are so many variables and each HOA is very different, there are often ways an HOA can qualify, even if all the lender’s criteria aren’t met exactly.

For example, if there are more renters vs owner occupied units than the credit policy allows, the lender may require a higher percentage of the unit owners vote yes to approve a loan.

An in depth, thorough loan request dramatically increases the HOA’s chance of being approved for a loan in a timely, efficient manner.

How do HOA loans work?

HOA loans are commercial loans as opposed to consumer loans. As a non-profit corporation, the Association has the ability to borrow money on behalf of it’s members, the homeowners. The loan is secured through the HOA’s right to assess and collect from the homeowners instead of any tangible collateral.

The loan may be structured as a line of credit which converts to a term loan or as just a stand alone term loan and are amortized between 5 - 20 years, depending on the lender.

Individual unit owners make a monthly payment to the HOA (in addition to the regular monthly dues) and the HOA makes a monthly loan payment to the lender. Rates and terms are fixed prior to the loan approval and homeowners have the option to pay their portion of the loan amount in full or participate in the loan payment program.

Do HOA loans require personal information from owners?

The loan is made to the HOA as a non-profit corporation, not to the individual homeowners and no personal information from the individual homeowners is required.

The lender will consider the value of the individual units as part of the underwriting criteria for the Association as a whole, and may consider the location, appreciation/depreciation of the property, and the delinquency factors as part of their analysis.

Do HOA loans require a special assessment?

Most HOA loans require the homeowners to approve a special assessment for the amount of the loan. Since the loans are secured by the Association’s ability to assess and collect, assessing the owners for the amount they are borrowing is critical. Sometimes a lender will require the Association to show several months of collection history in order to approve the loan which proves the HOA can absorb the cost of the loan without increasing the delinquency rate.



rbaze@bbfresources.com | 425.681.3381

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