Since 2007 we have assisted over 75 owner associations through major repair and financing projects, many of which involved multi-million dollar costs of repairs and loans.
Associations and managers often underestimate the complexity of financing and managing a major repair project. Understanding and preparing from the beginning to achieve the objectives of obtaining financing and completing repairs will save the association time and money down the road.
Board Member Orientation
We present to the board of directors and professional management at the outset a 90-minute orientation on the repair process, soup to nuts.
The Opinion Letter
If you need to borrow money, in all likelihood your bank will require an opinion letter from your attorney stating that (1) you have the authority to borrow and give security and that (2) you have followed the proper legal process, from beginning to end. For these reasons the association’s legal counsel should be brought in at the beginning and not the end of the process.
Our comprehensive multi-step process involves:
- Board orientation, as described above.
- Identifying financial sources for payment that reduce the financial burden on individual owners
- Reviewing and, if necessary, drafting amendments to the declaration of covenants to permit an association to give security for a loan
- Assisting the association and its professional management in the drafting of budget notices and repair plans to reduce the risk of expensive errors and to ensure compliance with Washington State notice and disclosure requirements
- Reviewing vendor contracts to ensure fairness and reduce the risk of unfulfilled expectations
- Designing a turn-key process for imposing assessments and collecting unpaid assessments that reduces the risk that an owner’s personal bankruptcy or property foreclosure will wipe out an association’s entire claim for repair costs
- Attending owner meetings to explain the repair process from a legal perspective in non-legalese and in a manner calculated to strengthen the community’s confidence.