Why are we seeking the loan?

We have been having major problems and have had to fund the repairs from our operating budget which results in increased association dues monthly and the need for regular special assessments to make this happen.

Over the last 4-5 years the reserve account has been depleted by prior HOA board and management company to fund the extremely high insurance rates without raising the HOA dues to cover it. There is currently no money in the reserve account.

We hope that everyone will see that this the only affordable path forward for everyone, without this it will extremely expensive to fund by using special assessments.

You can place your vote that you are in favor by going to: TBD

-All of the roofs are at least 20 years old and are constantly leaking. Each roof repairs costs between $3,000-$7,000 and is just temporary. There have been many repairs on it already done over the years.

-The mechanical/heating system needs to be repaired and updated so we dont have something happen again like last winter.

-The front entry stoops are failing and the city is requiring repairs to be done

-Many entry doors need to be replaced for safety, security and air leaking for the winter which contributed to the freezing.

-Parking lot has many large holes around.

-Lighting systems around are not functioning properly.

With approval of the loan we can make major replacements and not use the monthly HOA dues for these repairs. The cost of the major replacements are able to be repaid to the city through property taxes over a 15 year period which will keep the yearly costs low.

The repairs/replacements will still need to be made but without having funds in reserves account special assessments will need to be passed to fund the repairs.

Example of special assessments: Roof replacement which is desperately needed will result in a special assessment of approximately $3,800 per unit. Heating system upgrades/repairs would be approximately $1,125 per unit. Just these two items would be $5,000 of special assessments in one year and needs to be paid before we can have the work completed.

The annual cost of the loan would be less than $1,000 per year for each unit.

No, between the city requiring certain repairs and the systems failing we cannot afford to keep making repairs that are costly by themselves. The major improvements will need to be made to avoid possible building condemnation when water events happen.

We will be having in person community meetings and Zoom meetings to get this information out to everyone and provide an opportunity to ask questions.

Our next meeting is scheduled for:

July 8th 6pm-8pm in the clubhouse

July 66 Zoom meeting 

In order of importance:

-Replace roofs on all 4 buildings

-Major heating system upgrades. Replacement of 6 boilers, upgrades to in unit zone valves and replacement of shut off valves. Common area upgrade in heating radiators. Complete cleanout of system and flush to make sure pipes can deliver hot water everywhere. Putting an additive into the water for the heating system to prevent freezing.

-Replacing many front stoops and railings (city requirement).

-Building entry door replacement.

-Siding repairs.

-Parking lot repairs.

-Lighting and cameras

-Patio door replacement in each unit. (if budget allows). This was part of the issues with freezing pipes last winter as almost all of the patio doors are original.

-Other updates/upgrades as budget will allow.

We are hoping that by funding these massive repairs with the loan we wont have to pay such large repair bill constantly out of the operating budget and allowing those funds to replenish the reserve account. Hoping for the dues to stay the same for years to come.

Without the loan we would be looking at $5,000 plus special assessment in year one alone to do just some of the work we need. These funds would need to be collected from everyone before we could start the work so it would jeopardize going into the winter with leaky roofs and possible heating issues. Once the heating issues start during cold weather it is very difficult to stop the problems and they happen like a domino affect.

The city requires us to get at least 2 bids for each item we want to address. They will have a public council meeting to approve loan. They will hold the loan funds and disburse to contractors as work is completed with permits. You can always get more information directly from the city website https://www.brooklynpark.org/housing/home-improvements/

The loan is called HIA for associations.

We will be seeking a 2 million dollar loan from the city to fund all of the projects that are desperately needed. The repayment of the loan by each homeowner would be an amount less than $1,000 per year assessed to your property taxes. The loan is not repaid to the association and the association will not be liable for anyone who defaults on the loan.

Part of the big reason why units in our association are selling so low is because buyers cannot use traditional financing to purchase the condos. There outstanding work orders from the city that are a red flag. There are large improvements that are needed but no funds to do them and there are no funds in reserves. All of these items are a big red flag to traditional lenders. We are hoping with these repairs most of the obstacles go away and we can start rebuilding our reserves. When buyers are able to use traditional financing it turns it from a cash transaction to one that most buyers can afford.

We need 55-60% of all owners (not tenants) to vote in favor of the loan. If we do not get that many votes in favor the city council will not grant the loan to the association. 

The association will have no choice but to approve special assessments that are at least 5 times more expensive then the annual loan cost because it cannot be broken out over 15 years. Each homeowner will be looking at massive assessments to fund repairs that are urgent.