Condo Association Financing for Roof, Concrete, Elevators, Windows and Doors

What Is a Condo Association Loan?

A condo association loan is a loan made to the association itself, not to individual owners, to pay for capital improvements and major repairs. It's also called a COA or HOA loan, and it works the same way for homeowners associations.

Instead of asking every owner for thousands of dollars at once, the association borrows the money and repays it over time. Here's how that works:

1. The association borrows. The board gets any approvals its governing documents require, then signs the loan for the association.

2. The project gets paid for. The loan pays for the work, so the project can start without waiting for owners to pay.

3. Owners repay it over time. The loan payment goes into the association's budget, and each owner's regular assessments cover a share.

Owners don't apply for the loan or sign for it, and it isn't a mortgage on their units.

Terms you'll see on this page

• Assessments: the regular dues owners pay to the association.

• Reserves: money the association has saved for big future repairs.

• Special assessment: a one-time extra charge to owners, on top of regular dues.

• Capital improvement: a major, long-lasting repair or upgrade, such as a new roof.

• Delinquency: owners who are behind on their payments.

• Term sheet: a lender's written summary of a proposed loan. It's a proposal, not a final contract.

• SIRS: a Structural Integrity Reserve Study, a report many Florida condo buildings need on their major components and reserves.

• Milestone inspection: a structural safety inspection Florida requires for older condo buildings of three or more stories.

Which Capital Improvement Projects Does Samtov Finance?

Samtov finances any capital improvement or major repair that your governing documents and Florida law allow. Four of the biggest projects are roofs, concrete, elevators, and windows and doors, and each is explained below. We also finance:

• Balcony restoration and waterproofing

• Structural repairs and foundation stabilization

• Parking garages and concrete decks

• Plumbing repiping and infrastructure upgrades

• Electrical systems and panels

• Fire alarms and life safety systems

• HVAC and cooling towers

• Seawalls and marinas

• Pools, amenities and common areas

• Milestone inspection repairs and SIRS compliance

• Reserve funding and special assessment financing

• Insurance costs and hurricane damage

• Emergency repairs

• Refinancing existing association debt

Don't see your project? Call us at 754-900-7252. Tell us the work, the amount and your deadline, and we'll tell you whether we can help.

Roof, Concrete, Elevator, Window and Door Projects Explained

These four projects are among the largest an association will face. Here's what each one involves and how a loan fits in.

Roof Replacement

A roof replacement removes the old roof and installs a new one. It often includes repairs to the deck, flashing and drains underneath.

• Why it can't wait: Leaks spread into units and common areas. Roof age is also often the deciding factor in whether an association can get affordable insurance.

• What affects the cost: The roof's size and type, the building's height, code requirements, and any damage found once the old roof comes off.

• How a loan helps: It can cover the full project, including engineering, permits and related repairs, so the work doesn't wait on collections.

Read our HOA loan guide to roof replacement.

Concrete Restoration

Concrete restoration repairs cracked or crumbling concrete on balconies, walkways, garages and structural parts of a building. Crews remove the damaged concrete, treat or replace the rusted steel inside, then patch and seal the area.

• Why it can't wait: Water and salt air rust the steel inside concrete, so damage spreads and repairs cost more over time. In Florida, a milestone inspection can also put repairs on a deadline.

• What affects the cost: How much damage crews find once they open the concrete, plus scaffolding or other equipment needed to reach it.

• How a loan helps: You can build a cushion into the loan, so a surprise doesn't send the board back to owners. Ask us about funding in phases as the work moves along.

For more on financing options in Florida, see our Florida HOA Loan Guide.

Elevator Modernization

Modernization replaces an elevator's aging working parts, such as the controller, motor equipment and door systems. The existing shaft usually stays in place.

• Why it can't wait: Older elevators break down more often, and replacement parts get harder to find. An outage hits upper floors and residents with limited mobility first.

• What affects the cost: The number of cabs and floors, how much equipment needs replacing, and any code upgrades required during the work.

• How a loan helps: The board can do every cab as one project, instead of stretching the work across several budgets.

Window and Door Replacement

This means replacing old windows, sliding glass doors and exterior doors, often with impact-rated products built to resist hurricane wind and debris.

• Check who's responsible first: Your declaration says whether the association or the owners are responsible. The answer affects who votes and who pays, so ask your association's counsel.

• Why it can't wait: Old windows and doors can leak and may fall short of today's wind codes. Upgrades may also help with insurance.

• What affects the cost: The number and size of openings, the product rating, the building's height and how crews reach the work.

• How a loan helps: The building can do one coordinated project instead of working unit by unit.

A Florida grant may also help. The My Safe Florida Condo pilot pays associations back after approved work is done. A loan can cover the cost up front, and the reimbursement can then pay down the loan. Confirm the program is open, and don't start work until your grant is approved. Samtov is an independent private lender, not part of the state program. Read about starting the work with a Samtov loan.

How Do Associations Pay for Capital Improvements?

Associations have three ways to pay: reserves, a special assessment or a loan. Many large projects use more than one.

Reserves. The association spends money it has already saved. Upside: no new debt or extra charge. Downside: it's often not enough, and it leaves less for the next project.

Special assessment. Every owner pays a one-time charge on top of regular dues. Upside: no interest. Downside: it's a large bill at once, and some owners can't pay it.

Loan. The association borrows now, and owners repay through their assessments. Upside: the work starts now and the cost is spread out. Downside: interest and fees raise the total cost.

How a Loan Gets Repaid

The association makes one monthly payment to the lender, using the assessments it collects. The board adds that payment to the budget, so each owner's assessment goes up by their share until the loan is repaid. Shares usually follow each unit's ownership percentage in your governing documents, so larger units may pay more.

What It Costs Per Owner

A special assessment asks each owner for their full share at once, while a loan turns that share into a monthly payment. Here's what the one-time bill would look like on four sample projects, split evenly across the units:

• Roof: $240,000 across 16 units comes to $15,000 per unit

• Concrete: $1,500,000 across 120 units comes to $12,500 per unit

• Elevators: $640,000 across 80 units comes to $8,000 per unit

• Windows and doors: $600,000 across 60 units comes to $10,000 per unit

Sample figures only, not a quote. Each owner's actual share follows your governing documents.

With a loan, no one has to find that money at once. The cost is repaid through monthly assessments, and your term sheet shows the monthly cost per unit before the board decides.

A loan does cost more in total than a special assessment, because of interest and fees. A shorter loan means a higher monthly payment but less total interest. Paying the loan off early, or refinancing with a bank after 12 months, can reduce the cost.

Many boards combine the options, using some cash or a smaller assessment and financing the rest. That shrinks the loan and the interest. Read our full comparison of an HOA loan and a special assessment.

When a Special Assessment May Be the Better Choice

An assessment can make more sense when owners can absorb a one-time cost, few owners are behind on payments, and avoiding interest is the top priority. If that's your association, you may not need a loan.

Why Choose Samtov Over a Bank?

Samtov is built for boards that can't wait on a bank or don't fit a bank's rules. Here's where we stand out:

• Speed: We can give full approval in as little as 24 hours once we have all the requested information. At many banks, the process often takes weeks to months.

• Building size: We have no minimum unit count, including under 20 units. Many banks want 25 units or more.

• Loan size: We start at $50,000. Many bank programs start at $100,000 to $250,000.

• Reserves: Low reserves don't rule you out. Many banks want reserves of about 20% of the annual budget.

• Late-paying owners: Delinquency above 10% doesn't automatically rule you out. Many banks want it below about 10%.

• Management: We work directly with self-managed boards. Many banks want a professional manager.

• SIRS: We can fund projects while a SIRS is pending. Many banks want it completed first.

We also review associations with many investor-owned units, pending litigation, existing debt or recent board changes, case by case. Read 10 reasons to get a private HOA loan.

You're not locked in. After 12 months, an association has the option to refinance with a bank. Fix the building now, then decide later whether a bank loan makes sense. See how a bridge loan and a bank refinance work together.

Loans for Associations Under 20 Units

Samtov has no minimum unit count, so associations with fewer than 20 units can apply, subject to underwriting. Bank minimums often leave small buildings with few options.

Small buildings also feel a big project more. A $240,000 roof costs $15,000 per owner in a 16-unit building, but $2,400 per owner in a 100-unit community.

We also work with small boards that have no management company, low reserves or owners behind on payments. Read our guide to small HOA loans, or see your options after a bank denial.

Why Choose Samtov Over Other Private Lenders?

Private lenders are often faster than banks, but they aren't all the same. Here are the questions to ask any private lender, along with our answers.

• Are you the lender or a broker? We're a direct lender and make our decisions in-house, so you don't wait on outside committees.

• Do you specialize in associations? Yes. We specialize in condo and HOA loans, so we know how assessments, governing documents and owner votes work.

• How fast can you give a real answer? Full approval in as little as 24 hours once we have all the requested information.

• Is there a minimum building size? No. Associations of all sizes can apply, including those under 20 units.

• How large a loan can you make? From $50,000 up to $15 million.

• Are your rates competitive? Yes. Our rates are competitive in the private financing space, and your term sheet shows the full cost before the board decides.

• Which projects will you fund? Any capital improvement or major repair your governing documents and Florida law allow.

• Do you know Florida's rules? Yes. We're based in Miami and lend across Florida, and milestone inspection and SIRS projects are welcome.

• Can we pay the loan off early? After 12 months, we often allow associations to pay off part or all of the loan with no penalty.

• Who will we work with? A loan specialist who explains every term in plain English, backed by over 20 years of real estate experience.

Ask every lender the same questions, then compare written term sheets side by side. The lowest rate isn't always the lowest total cost. Here's how to compare term sheets.

Free consultation: Get a Loan Quote · Call 754-900-7252

Typical Terms for a Samtov Association Loan

Most Samtov association loans run 5 to 10 years and are repaid with monthly payments. Your term sheet shows the exact numbers before the board decides.

• Loan amount: $50,000 to $15 million

• Loan length: typically 5 to 10 years

• Payment plan: built around your project and budget, usually with regular monthly payments that pay off the loan by the end of its term

• Interest rate: competitive in the private financing space, and set after we review your association

• Fees and conditions: listed on your term sheet

• Approval: full approval in as little as 24 hours once we have all the requested information

• Share of the project: up to 100%, including engineering, permits and related repairs, subject to underwriting

• Paying off early: after 12 months, we often allow payoff of part or all of the loan with no penalty

• Refinancing: the option to refinance with a bank after 12 months

• What secures the loan: the community's assets, mainly its right to collect assessments and place liens, not a mortgage on any unit

• Personal guarantees: none, and no individual credit checks

• Building size: associations of all sizes, including under 20 units

• Location: condo associations and HOAs across Florida

Want to know how to read these items? Our term sheet guide explains each one in plain English.

What Your Association Needs to Apply

Start with the documents below. A complete package gets the fastest answer, and if something is missing, we'll tell you what to send.

• Financial statements: the last two years, plus the current year to date.

• Annual budget: the current year's budget.

• Delinquency (aging) report: a list of which owners are behind on payments, and by how long.

• Bank statements: recent statements for your operating and reserve accounts.

• Repair schedule and estimates: contractor bids or invoices, plus the timeline for the work.

• SIRS or milestone inspection report: include one if you have it.

• Insurance and existing loans: your insurance information and the details of any current loans.

Before closing, expect to provide your governing documents and a board resolution approving the loan. Your governing documents usually include the declaration, bylaws and articles of incorporation.

What Happens After You Apply

1. Tell us about the project. Call 754-900-7252 for a free consultation, or request a quote with the work, the amount and your deadline.

2. Send your documents. We'll review your package and ask for anything else we need.

3. Get a decision and a term sheet. Full approval can come in as little as 24 hours once we have all the requested information. The term sheet shows the rate, loan length and monthly cost per unit.

4. Approve, close and fund. Once the board approves, and owners vote where required, we close and fund so the work can start.

Getting ready? Our pre-loan guide for board members can help.

Frequently Asked Questions

Can a condo association or HOA take out a loan?

Yes, if its governing documents allow it. The association is the borrower and repays the loan from its assessments. Individual owners don't apply for the loan.

Do owners or board members have to sign a personal guarantee?

No. Samtov doesn't require personal guarantees or individual credit checks. The association is the borrower, and the loan is secured by the community's assets, mainly its right to collect assessments.

Do owners have to vote on the loan?

It depends on your governing documents. Some require an owner vote, while others let the board borrow on its own or up to a set amount. In Florida, using a loan to fund required SIRS reserves needs approval from a majority of all voting interests. Confirm your requirements with your association's counsel.

Will our monthly assessments go up?

Usually, yes. The board adds the loan payment to the budget, so each owner pays a share every month until the loan is repaid. Your term sheet shows the monthly cost per unit, so the board can see the effect before deciding.

How much can our association borrow?

We lend from $50,000 to $15 million, to associations of any size. The right amount depends on the project and what your assessment income can comfortably support.

What interest rate will we pay?

It depends on your association's finances and the project. Our rates are competitive in the private financing space. Your term sheet shows the rate, fees and monthly cost per unit before the board decides.

How fast can we get approved, and when do we get the money?

We can give full approval in as little as 24 hours once we have all the requested information. Approval is our decision on your request, not the funding. We close and fund shortly after the board approves the loan and any required owner vote is done.

Can we qualify with low reserves, late-paying owners or a bank denial?

It's possible. Reserves aren't required, delinquency above 10% doesn't automatically rule you out, and we consider associations that banks have denied. We focus on whether your assessment income can support the payment.

Can we pay the loan off early or refinance with a bank?

In many cases, yes. After 12 months, we often allow associations to pay off part or all of the loan with no penalty. They also have the option to refinance with a bank. Your term sheet spells out the details.

Is a loan better than a special assessment?

It depends on the project and your owners. An assessment costs less in total because there's no interest. A loan avoids a large one-time bill and lets the work start now.

Summary

• What it is: A condo association loan goes to the association, not to individual owners, and is repaid through assessments.

• What it pays for: Roofs, concrete, elevators, windows and doors, and any other capital work your governing documents allow.

• What it costs: More in total than a special assessment, but no owner has to pay a large bill at once, and the work starts now.

• Why Samtov over a bank: Faster approval and no minimum unit count, and we consider associations with low reserves, late-paying owners or a past bank denial.

• What Samtov offers: $50,000 to $15 million for Florida associations of any size, at rates competitive in the private financing space. Full approval can come in as little as 24 hours once we have all the requested information.

Get a Decision on Your Project

Tell us the project, the amount and your deadline. Your first call is a free consultation, and we'll tell you what to send and how quickly we can give you an answer.

Free consultation: Get a Loan Quote · Call 754-900-7252 · info@samtov.com

Samtov Finance, 19790 W Dixie Hwy, 8th Floor, Suite 811, Miami, FL 33180

More guides for condo and HOA boards

• Private Loans vs. Bank Loans for HOAs and COAs in Florida

• SIRS and Reserve Funding Loans in Florida

• The Ultimate Q&A for HOA Loans

• Board Member's Guide for HOA Loans

Loans are subject to underwriting and approval, and terms vary by association. Approval times depend on the completeness of the request, and not every request can be approved in 24 hours. Examples are illustrations, not quotes. This page is general information, not legal, accounting or financial advice. Associations should confirm approval and voting requirements with qualified association counsel.