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condo taking out a loan
Wed Feb 24, 2010 16:03

I live in a fairly large condo building. Our new board (2010) has opted to take out a loan for maintenance on our building. They plan to pay only the interest on this loan. There is no telling when and if there will be enough funds to pay back the principle. We have several units already in default for well over a year.

There was no vote by the residents as to if the loan was to be taken out (we have a line of credit that I am afraid our board thinks is cash in the bank for their use)...this was a board decision and the residents were informed only by a couple of words at a meeting (where there were few residents in attendance)

What is your opinion as to their loan payment plans - and the method (or lack of) that they made their determinations.

    • scrutinize the bank deal C/CS, Fri Feb 26 09:57
      You already know this loan is a bad idea, but borrowing is something Boards can usually do [check your by-laws for possible constraints], with or without consulting all owners. Given your apparently... more
    • condo taking out a loan Steve-Inwood, Thu Feb 25 15:01
      Buildings and building repairs/capital improvements all wear out over time. This is the real world basis for the accounting treatment called depreciation. Take a roof for example, when the roof needs ... more
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