What is the name of your state (only U.S. law)? MA
I Live in a condo of 100 units and there is a huge assessment for replacing the outer shell (siding, roof, windows & doors) The per unit cost is in the range of $40 to 60K.
Since the project falls under the category of essential repair, There was no voting for any of the decisions.
The HOA has now taken a $3.5 million Line Of Credit (LOC) from a bank for funding the project. They are giving 2 options to the residents
1. Pay the entire Assessment cost of the individual units upfront or
2. Take a 10 yr loan from the HOA's LOC (this will be given to the residents without any credit check and the HOA will get an interest & a small management fee for handling this loan )
HOA says that anyone who wants to sell their home down the line even if they have made the complete payment on their units Assessment cost will still need to disclose to the prospective buyer about the Associations Debt.
Some of the residents are afraid that we wont be able to sell our codo in the future given the risk of potential foreclosures among those who have taken the 10 yr loan option & the millions of $ Debt that the HOA is holding.
My Questions are
1. Does the HOA has the right to give a 10 yr loan for only a few residents from the Line of Credit.
2. As an individual unit owner, Can I object the HOA from giving 10 yr loan and instead push them for a shorter period of 2 or 3 years loans, so that I may be able to sell my unit anytime after that.
Adv Thanks for your guidance.
I Live in a condo of 100 units and there is a huge assessment for replacing the outer shell (siding, roof, windows & doors) The per unit cost is in the range of $40 to 60K.
Since the project falls under the category of essential repair, There was no voting for any of the decisions.
The HOA has now taken a $3.5 million Line Of Credit (LOC) from a bank for funding the project. They are giving 2 options to the residents
1. Pay the entire Assessment cost of the individual units upfront or
2. Take a 10 yr loan from the HOA's LOC (this will be given to the residents without any credit check and the HOA will get an interest & a small management fee for handling this loan )
HOA says that anyone who wants to sell their home down the line even if they have made the complete payment on their units Assessment cost will still need to disclose to the prospective buyer about the Associations Debt.
Some of the residents are afraid that we wont be able to sell our codo in the future given the risk of potential foreclosures among those who have taken the 10 yr loan option & the millions of $ Debt that the HOA is holding.
My Questions are
1. Does the HOA has the right to give a 10 yr loan for only a few residents from the Line of Credit.
2. As an individual unit owner, Can I object the HOA from giving 10 yr loan and instead push them for a shorter period of 2 or 3 years loans, so that I may be able to sell my unit anytime after that.
Adv Thanks for your guidance.