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Loan Application Checklist – Homeowner Associations



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I.     Application Process

1. Completed Loan Application.
2. Loan application fee of $1,000 (refundable if lender declines the loan). This fee will be applied to the cost of the required attorney opinion letter.
3. Borrowing Resolution (sample resolution is enclosed).
4. Attorney's Statement certifying the association's authority to borrow and verifying proper passage of Borrowing Resolution (see note below).
5. Certified copy of the association's Governing Documents (Articles of Incorporation, Declaration of Covenants, Conditions and Restrictions, and Bylaws).
6. Copy of current Annual Budget and the next year's, if available.
7. Current financial statements:
  a. Balance Sheet         b. Income and Expense Statement          c. Delinquency Report
8. Last audited/reviewed financial statement by CPA, if applicable.
9. Copy of current Reserve Study.
10. Copy of the association's collection policy.
11. Minutes of the last six board meetings.
12. Copy of Management Agreement.
   

Note Re: Attorney's Statement (item 4 above) - the board must provide a written statement from an approved attorney which certifies the association's authority to borrow and pledge assets as collateral. The statement must include verification that the borrowing resolution has been passed in accordance with the governing documents and applicable laws. The attorney's statement must be received before the loan request can be submitted to the lender's loan committee. In addition to the statement certifying the association's authority to borrow, an attorney's opinion letter will be required at closing (see III below).

II. Loan Committee

After receipt of the items detailed in Step I above, a summary loan proposal will be prepared for submission to the lender's committee. The loan committee may amend the loan request or make a decision on the loan as submitted. Approved loans may be subject to conditions to be met prior to funding. The loan committee will also determine final pricing for approved loans.

If the loan proposal is amended by the committee, or is approved subject to conditions, these requirements will be forwarded to the association for action and approval by the board.

III. Commitment, Documents & Funding

Upon final approval by the lender's loan committee, a formal commitment letter will be issued by the lender. Final loan documents will be drawn for review by the association's attorney and drafting of formal resolutions for adoption by the board.

Loans will be scheduled for funding upon receipt of certified copies of resolutions and executed loan documents. The lender will also require an attorney's opinion letter validating actions of the association relative to the loan transaction. A sample attorney's opinion letter is included with this application.

 

LOAN APPLICATION - ASSOCIATION

Please provide the following information. If the information requested is not available or applicable, please indicate by placing "N/A" on the appropriate lines.

 General Information

1. Association Information:
   
a. Name:  ____________________________________________________
   
b. Street address / location:  ______________________________________
   
  City, state, zip:  ______________________________________________
   
c. Mailing address:  ____________________________________________
   
d. Management company:  _______________________________________
   
  __________________________________________________________
   
  Primary contact:  ____________________________________________
   
  Mailing address:  ____________________________________________
   
  City, state, zip:  ______________________________________________
   
  Phone:  (          )  _________________  Fax:  (          )  ________________
   
2. Loan amount requested:  $  _______________________
   
3. Background

 

a. Number of units:  ___________     Number owner occupied:  ___________
   
b. %  owner occupied:  ___________
   
c. Average monthly assessment per unit:  $  _______________
   
d. Proposed special assessment (to repay the proposed loan) per unit: $  _____
   
e. Current delinquent assessments:  $  _________;  Over 60 days $ _________
   
f. Current reserve amount:  $__________________
   
g. Federal Tax I.D. #:  _______________________
   

  Explain the terms / requirements of any existing special assessment not related to this loan application:  _____________________________________________
   
  _____________________________________________________________
   
  _____________________________________________________________
   
  _____________________________________________________________
   
   
   
4. List Current Board Members
   
Name   Title   Mobile Phone   Home Phone
             
_________________________   ____________   (       ) ______   (       ) ______
             
_________________________   ____________   (       ) ______   (       ) ______
             
_________________________ ____________ (       ) ______ (       ) ______
             
_________________________   ____________   (       ) ______   (       ) ______
_________________________   ____________   (       ) ______   (       ) ______

 

5. Loan Requested:
   
a. Purpose of loan:  __________________________________________
   
  _______________________________________________________
   
b. Length term requested:  _____________________________________
c. Source of repayment:  __ Regular assessments  __ Special assessments
   
  _____  Other (explain)  _____________________________________
  _______________________________________________________
   
  _______________________________________________________

 

Please Provide the Following Information

1. Association attorney:  _______________________________________
   
  Firm:  ___________________________________________________
   
  Address:  ________________________________________________
   
  City, state, zip:  ___________________________________________
   
  Phone:  (          )  ______________  Email:  _____________________
   
2. CPA:  __________________________________________________
   
  Firm:  ___________________________________________________
   
  Address:  ________________________________________________
   
  City, state, zip:  ___________________________________________
   
  Phone:  (          )  ______________  Email:  _____________________
   
   
3. Reserve Study Provider:  ____________________________________
   
  Firm:  ___________________________________________________
   
  Address:  ________________________________________________
   
  City, state, zip:  ___________________________________________
   
  Phone:  (          )  ______________  Fax:  (          )  _______________
   
   
4. Insurance agent:  __________________________________________
   
  Firm:  ___________________________________________________
   
Address:  ________________________________________________
   
  City, state, zip:  ___________________________________________
   
  Phone:  (          )  ______________  Fax:  (          )  _______________
   
   
Please list the details of any actual or pending litigation and/or any actual pending special assessments, not related to this loan application, anticipated in the current or next fiscal year:
 
________________________________________________________________________
 
________________________________________________________________________
 
________________________________________________________________________
 
________________________________________________________________________
 
________________________________________________________________________
 
________________________________________________________________________
 
________________________________________________________________________
 
________________________________________________________________________
 
________________________________________________________________________
 
________________________________________________________________________
 

 

 
















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