Plan Offers Repair Loans to Condo Owners

The nation’s condominium owners will be able to borrow money to finance renovations, capital improvements or repairs under a program unveiled Friday by the National Cooperative Bank.

The congressionally chartered bank announced that it will make the funds available through community associations such as condominium and homeowners associations.

Many condo owners are often subject to large special assessments that must be paid in lump sums, rather than stretched out in monthly payments over several years.

“Now homeowners who have had to endure heavy one-time assessments of an average of $3,000 will have the option of amortized payments that create a less costly, more affordable monthly payment,” bank Vice President Kathleen Luzik said.

Associations will be able to obtain loans for such projects as roof repairs and replacement of windows and heating and air-conditioning systems. Loans could also be used to build swimming pools or tennis courts.

Condo owners, who currently have to pay a one-time $1,500 special assessment for replacement windows, would pay only $31 a month with a five-year loan arranged through their homeowners association, bank figures show.

“As you can see, there are several great advantages to first-time homeowners strapped for cash or seniors living on fixed incomes, since our program will ease the burden of having to come up with cash for a heavy one-time assessment,” Luzik said.

The bank said more than half of all condominiums in the United States were built before 1985 and need repairs.