CAI-NJ July 2022

CAPITAL IMPROVEMENT... from page 28.

“Depending on your pre qualification amount, it may

Phase 2: Evaluate Your Funding Options Once you decide to move forward with a project, you’ll have to determine how to fund the costs. The main questions to ask are: • Do you have enough in reserves to cover costs? • If not, could a special assessment cover the project costs? • Is financing a better option based on lending rates and payment terms? • Is a hybrid approach better — e.g., taking some of the cost from either reserves or a special assessment and financing the rest? If you’re financing any of the project, start by learning what size loan your association is pre-qualified to receive. Here’s a tip: depending on your pre-qualification amount, it may make fiscal sense for you to bundle multiple capital improvement projects together. Hold off on finalizing a loan until you know the final scope of work and contract amount since the numbers can change as the project scope is clarified.

make fiscal sense for you to bundle multiple capital improvement projects together.”

Phase 3: Select a Construction Professional For a complex, community-level renovation or construc tion project, it’s unlikely your board members or other homeowner leaders have enough experience and time to manage the project. For professional help, the board should form a dedicated subcommittee that meets regularly and, at times, often. One of the committee’s first goals is to hire a construction professional. This could be an engineer, construction manager (CM), or other third party who acts

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Isn't it about time you took a fresh look at your community's insurance program?

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Let us work with your association to find the right coverage, at the right price. Felsen Insurance Services, Inc. 3155 Route 10

Denville, NJ 07834 Phone: 973-361-1901 Fax: 973-361-2660 info@felsen.com

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