Loans can be an effective financial tool for community associations. Whether the goal is replacing roofs, renovating pools and other amenities, addressing deferred maintenance, or responding to an unexpected emergency, borrowing may allow an association to complete necessary projects without imposing a large one-time financial burden on owners. Like any debt, however, a loan is a long-term financial commitment that should be approached carefully. Before signing loan documents, boards should ensure they have the legal authority to borrow, understand the obligations they are assuming, and communicate openly with the membership. Below are several important considerations for North Carolina community associations … Continue reading →