CAI-NJ Nov. 2019(w)

HML-4488 construction ad mech02.qxp_1/2 pg vertical 9/17/15 4:14 PM Page 1

FINANCING... from page 22.

the association becomes as important as ever for the unit owners, the board, and the management company. Ultimately, the decision to go for- ward with a project completely, in a scaled down manner, or not at all rests with the association. The project can be paid for in three basic fashions, either by utilizing established reserves, assessing the unit owners up front, or securing a bank loan. This article will address securing a bank loan. A bank loan offers the following advantages: • The potential slide of property values may be slowed or eliminat- ed when the association improves the appearance of property and eliminates any structural integrity problems; • Needed repairs or improvements can be completed quicker, as total funds become available faster; and • The financial impact on unit owners can be reduced, as unit owners can pay their share of the loan over time. Approaching a bank can either be through a board member or, in most cases, the management company or the on-site manager. Initially the bank will ask for: • The scope of the project; • The professionals that have been consulted such as engineers, con- tractors, attorneys or CPA’s; and • The loan structure being sought, such as a Line of Credit, a Term Loan or a combination of both.

Who canYOUR Association count on today for guidance in Transition and Construction Defect Litigation?

A Professional Corporation

Hueston McNulty, P.C. Defense and General Counsel Serving New Jersey, New York & Pennsylvania N Value–Experience–Quality We provide our Association clients with qual- ity and value.We strive to solve the problem– resolve the issue–and make life easier for our Associations and their property managers. Samuel J. McNulty, Esq. smcnulty@huestonmcnulty.com /www.huestonmcnulty.com Tel: 973-377-0200 / Fax: 973-377-6328 Florham Park - Sparta - Toms River - Philadelphia - Manhattan

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