How to Fund HOA Projects Without Large Special Assessments Blog

How to Fund HOA Projects Without Large Special Assessments

Intro

“We can’t afford this.”
That’s what Florida condo boards are hearing every day at town halls, in email threads, and through angry phone calls from terrified owners.

A roof that’s 20 years past its useful life. Concrete that’s cracking. Insurance premiums that have tripled. And now, thanks to Senate Bill 4D (SB 4-D), boards can no longer kick the can down the road.

For many associations, the answer has been to issue massive special assessments $10,000… $30,000… even $50,000+ per unit. But that solution is breaking communities apart.

What if you could fund your HOA’s critical projects without pushing residents into financial ruin?
Let’s walk through how.

The Crisis: Underfunded Reserves, SB 4-D, and Owner Backlash

In the wake of the Surfside collapse, the Florida legislature passed Senate Bill 4D (SB 4-D), requiring mandatory Structural Integrity Reserve Studies (SIRS) and full reserve funding for critical components.

Most associations aren’t ready. And they’re panicking.

- Little to no reserves
- No insurance unless major repairs are completed
- Fannie Mae loan restrictions
- Emergency HOA special assessments

Homeowners are being hit with five-figure bills they can’t pay.

Why Special Assessments Are Failing

For decades, boards relied on special assessments to fund large projects. But today, that strategy no longer works:
- Inflation has made repairs more expensive
- SB 4-D enforces reserve compliance
- Assessments trigger foreclosures, lawsuits, recalls

Imagine asking a 72-year-old widow to write a $30,000 check in 90 days. Now imagine doing that to 80 residents at once.

There’s a Better Way: HOA Project Financing

Boards are turning to HOA loans, association loans, and condo association loans to fund capital projects.

With reserve funding loans, you can:
- Fund 100% of the project upfront
- Spread repayment over 3–25 years
- Avoid special assessments
- Stay compliant with SB 4-D
- Protect property values and residents

Example: The Math Behind Smarter Funding

Need to fund a $1.5M restoration with 100 units?

- Special assessment: $15,000 per unit
- HOA loan: ~$115/month per unit

Which sounds easier to present to homeowners?

Proactive Boards Are Rewriting the Playbook

Here’s what proactive boards are doing:
- Running reserve gap models
- Exploring association loans
- Gradually increasing dues
- Locking in contractor pricing
- Communicating early and often

You can preserve trust and meet your funding obligations. But you can’t wait until your next emergency meeting.

How to Get Started with HOA Financing

HOA financing is accessible and designed for volunteer boards.

We help boards:
- Run a free affordability model
- Match with lenders
- Get sample term sheets
- Communicate with residents

No personal guarantees or credit checks required.

Get Your Free HOA Reserve Funding Strategy Session

Let’s run the numbers for your next project:
- Understand long-term financing options
- Break down monthly cost per unit
- Stay compliant with SB 4-D
- Protect your community

👉 Request Your Free HOA Reserve Funding Strategy Session
Visit HOALoans.com to get started.

Closing

You didn’t cause this crisis but you have to clean it up.
Be the board that solved the problem, not the one that got replaced.

Visit HOALoans.com today to take the first step toward smarter funding.