PROPERTY
TYPES |
|
Condominiums, townhomes, co-ops, planned communities. |
 |
TRANSACTION
SIZE |
|
Up to $10,000,000 per property. |
|
USE OF
PROCEEDS |
|
Capital improvements and specific renovations to common area elements for community associations including soft and hard costs. |
|
| INTEREST RATE |
|
Fixed rates are indexed to like-term treasury rates with floating rates indexed to LIBOR or the prime rate. |
|
| TYPICAL TERMS |
|
Up to 7 years. |
|
| SECURITY |
|
First lien against accounts receivable/special assesment; first lien against equipment being financed (as applicable). |
|
| GUARANTEES |
|
As applicable. |
|
| BORROWER'S EXPERIENCE |
|
Property should be at least 5 years old with stable operating history. |
|
| FINANCIAL PERFORMANCE |
|
Membership assessment delinquencies of 30 days or more must not exceed 5% of the budgeted gross annual assessment of the association. Sixty percent or more of the units must be owner occupied. |
|
| LOAN TO VALUE |
|
Up to 100% of the project cost. |
