What can you finance with a condo term loan?
A unique loan product to condominium corporations and strata plans who are faced with unexpected capital repairs and replacements, additions and alterations and reserve fund shortfalls.
Building Envelope
Energy Retrofit
Local distribution companies and other government or government-regulated entities offer programs that incentivize condominium corporations to reduce greenhouse gases and other emissions and improve energy efficiency through retrofits. When condominium corporations have experts evaluate the viability of these retrofits, they often find that when financed by a CondoCorp Term Loan, the savings created by the retrofits are greater than the cost of the loan payments.
Balcony, Window and Door Restoration
The windows, doors, and balconies of a condominium are unit owners personal use common elements and protect their unit from the outdoor environment. Over time the windows, doors, and balcony can wear, and allow moisture seepage into the unit ultimately resulting in rot. Degradation of the balcony structure is also a concern. Proper maintenance should be taken to ensure a cool summer, warm winter, and the unit owners safety while enjoying their balcony. Typically, these renovations are undertaken together and can form a significant expense. It is often the case that these renovations will be a large financial burden on the unit owners. Depending on the financial constraints of these owners, CondoCorp Term Financing could be a viable alternative to a special assessment.
Parking Garage Restoration
Surface level and below grade parking spaces typically cost between $100 and $500 per stall per year to maintain and repair. This includes waterproofing and repairs of degraded concrete and other structural elements of the system. The CondoCorp Term Financing program can offer financing schedules tailored to manage these
Elevator Repair and Replacement
As buildings age, one of the most fundamental components of the condo, the elevator system, will need to undergo repairs, updating and replacement in some instances. Because elevators are required for access to condominium residences, to ensure continuous service, repairs must often be undertaken over an extended period. Morrison Financial offers financing tailored to these schedules, which can take 18 months or longer to complete.
Reserve Fund Replenishment
Often a reserve fund study will reveal that a corporation has an inadequate balance to pay for anticipated repairs and replacements of common elements of the corporation for the ensuing 5, 10 or 30 years. This is often the result of a recent negative surprise that resulted in an unexpected and expensive repair and replacement project. To avoid a substantial special assessment of the unit owners, a loan can be used to replenish the reserve fund.
What is an addition or alteration?
An addition or alteration can be made without notice to the owners if in the opinion of the board it is necessary to maintain security and safety of property or assets and is less than the lesser of 3% of the annual budget and $30,000. Condominium Atc, 1997 – 97 (5)
What is required to approve the work?
The corporation shall send a notification to owners of the proposed modification, which states that any issues should be brought forth through requisition of a meeting. If the modification is substantial the board requires 66 2/3% of units to vote in favor.
Can a condominium borrow for this?
Refinancing of Guest Suites
Purchases from the Developer
Sample condominium financing projects
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