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1. SMART FINANCING FOR EFFECTIVE CONDO MANAGEMENT Finance Consultant Condominium and homeowner associations (HOAs) are vital in managing residential communities, from condos to townhouses. They oversee common areas, enforce rules, and maintain property value. However, their financial needs can be complex, often requiring specialized financing solutions to fund projects and meet operational demands. Effective financial management is essential for these associations to ensure long-term property sustainability and community well-being. 575 Lexington Ave. 4th Floor, New York, NY 10022 bkorn@barrettcapital.com 212-319-8400

2. Exploring Financing Options for Condo Association Loans in New York Key Financing Options for Condominium and Homeowner Associations 1. Senior Financing Secured by Common Charges: The most popular proposed method of financing for condominium and homeowner associations is senior financing by standard charges. In this regard, the loan is guaranteed by the regular assessments recovered from homeowners, which are referred to as standard charges. This financing enables associations to borrow money from financing companies based on their ability to generate fairly steady cash inflows. 2. Non-Revolving Lines of Credit: Another procurement resource that is beneficial for associations is Non- revolving lines of credit. A non-revolving line of credit is different from the regular revolving lines of credit in which borrowers can withdraw and repay the money many times. Still, the association provides a limited one-time withdrawal amount for the non-revolving line of credit. This is a good example of financing that is suitable for planned activities with a defined budget, such as renovation or infrastructure development. 3. Equipment Leases: Leasing can be an effective method of financing. Associations do not always have to buy equipment that may seem expensive or detrimental to their budget; they can hire equipment that they require. Also, leasing does not require a huge amount of cash at the outset, and the rental can be made to fit the association’s cash flow. 575 Lexington Ave. 4th Floor, New York, NY 10022 bkorn@barrettcapital.com 212-319-8400

3. 4. Unsecured Financing: Financing without collateral is available for associations that may not be in a position to provide security for a business loan. Unsecured financing, unlike secured financing, involves no pledge of any asset from the association in case the borrower defaults on servicing the finance. Such funding can be used for repairs that may take a small sum of money to accomplish, operational costs, or minor works. 5. Construction Loans: Whenever associations embark on capital-intensive construction activities like building new amenities or expanding facilities, a construction loan proves to be an ideal solution. Here, construction loans work in stages as the construction unfolds, and the money is fronted to the association, which enables the contractors and suppliers to be paid as they execute their work. These are short- term loans that are converted to long-term financing once the construction work on the project is complete. 6. Term Loans: Term loans give associations access to a large amount of capital, which is repaid in portions consistently. Such financing is suitable for associations that need funding for certain projects or purchasing large stocks. Term loans have less flexibility in repayments since they are associated with specific interest rates and regular installments. Conclusion Management of condominium and homeowner associations involves financing in different ways. Whether a construction loan is needed for an extensive development project, a line of credit is required to pay operational expenses, or planning for future financing needs, there is often an appropriate financing strategy to allow the association to achieve its goals without bankrupting the community. Finding help from a financial consulting company in New York will help you achieve the best result at the appropriate time. 575 Lexington Ave. 4th Floor, New York, NY 10022 bkorn@barrettcapital.com 212-319-8400