In this week's tip, we answer questions about loans in response to questions raised by an HOAleader.com reader who lives in a condo.
Our reader says that instead of seeking a special assessment, which would have required the majority of the condo's owners to give consent, their board took out a loan to cover work not fully covered by insurance. The loan won't be finalized until total costs come in from the contractor, and the condo's audit report says the loan will be collateralized by all
association assets then owned or future owned.
Click on the arrow below to hear a short clip in which two of HOAleader.com's experts—Alex Noland, CCAL, founder of Noland Law PC in San Francisco, which represents 200-plus community associations
throughout California, and Elina Gilbert, a shareholder at Altitude Community Law in Lakewood, Colo., who has specialized in community association law for 25 years—break down the concept of a loan being secured by a condo's assets.
