Florida associations are borrowing more than ever. The Surfside collapse triggered three major laws — SB 4-D (2022), SB 154 (2023), and HB 913 (2025) — requiring mandatory milestone inspections and Structural Integrity Reserve Studies (SIRS) for every condo and cooperative building three stories or taller. As of November 2025, 7,836 associations have completed their SIRS. Many discovered funding gaps measured in millions of dollars.
When reserves are not enough and a six-figure-per-unit special assessment would force owners to sell, an HOA loan spreads the pain over 10 to 20 years. This guide covers when borrowing makes sense, the Florida lenders that actually do this work, current rates, the application process, and the legal requirements you cannot skip.
When HOAs and condos borrow money
The most common reasons Florida associations borrow:
- SIRS-mandated structural repairs — concrete restoration, roof replacement, waterproofing, balcony repairs, and milestone inspection deficiencies
- Underfunded reserves — decades of reserve waivers catching up with aging buildings
- Hurricane damage beyond insurance coverage — 2%, 5%, or 10% hurricane deductibles mean a $5M building carries $100K-$500K in out-of-pocket exposure before coverage begins
- Emergency repairs during Governor-declared emergencies under Section 720.316
- Capital projects — pool renovations, elevator modernization, paving, amenity upgrades
- Alternative to special assessments — spreading a $10M roof replacement over 15 years instead of a one-time $50K-per-unit hit
Under HB 913: "A unit-owner-controlled association that is required to have a SIRS can fund reserves by a special assessment, a line of credit, or loan, with the approval of a majority of the voting interests of the association. Funding from the line of credit or loan must be immediately available for access by the board to fund required repair, maintenance, or replacement expenses without further approval by the members." This lowered the bar from 75% to a simple majority for SIRS-specific borrowing.
Types of HOA loans available
Term loans
Lump-sum disbursement with 5 to 20 year amortization. Most common for one-shot projects — new roof, concrete restoration, seawall replacement. Fixed rate typical. Amortization usually matches the useful life of the improvement.
Lines of credit (LOC)
Draw funds as needed during multi-phase construction. Interest-only during the 6 to 24 month draw period, then converts to an amortizing term loan. Ideal for phased structural restoration where costs are incurred over months.
Assessment-backed loans
Secured by pledge of future assessment income. Collateral is the association's statutory right to levy and collect — not the physical property. Most community association loans are structured this way.
Insurance premium financing
Short-term loans specifically to spread insurance premiums or cover hurricane deductibles after major claims. Centennial Bank and others offer these in Florida.
Typical loan amounts: $100K for small projects (paving, minor repairs) → $1M for mid-size high-rise renovations → $5M to $30M+ for major structural restoration at large condos. Becker & Poliakoff notes that loans over $1 million are now routine for balcony and seawall work in Florida.
Florida HOA lenders
Community association lending is a specialty. Generic commercial banks often cannot underwrite these deals because the collateral — future assessments — is unique. These lenders focus on HOAs and condo associations.
Specialized national lenders active in Florida
| Lender | Specialty | Notes |
|---|---|---|
| Alliance Association Bank | Term loans, converting construction LOCs | Division of Western Alliance. 5-15 year terms. No personal guarantees from board members. |
| First Citizens Bank | Quick-term loans up to $3M, term loans, revolving LOCs | Absorbed CIT and Mutual of Omaha Bank. 3-5 business day approval for quick-terms. |
| Popular Association Banking | Full-service association lending | HQ in Miami Lakes, FL. Division of Popular Bank. Serving FL since 1994. |
| FirstService Financial | Brokered lending through 20+ partners | Only available to FSR-managed communities. Has placed $500M+ in loans. |
Florida-headquartered and Florida-active banks
- BankUnited — HOA/CIRA loans and Super Unit Mortgages
- City National Bank of Florida — dedicated community association group
- Cogent Bank — in-house underwriting, local decision-making
- Amerant Bank — Miami-based. 7 business day decision, 48-hour funding
- Seacoast Bank — structural repairs focus (roofs, seawalls, concrete)
- Valley Bank — branches in FL, AL, NJ, NY
- Truist — 35+ years in association lending
- One Florida Bank — Florida-focused community association program
Rates and terms (2025-2026)
| Parameter | Typical Range |
|---|---|
| Interest rate — specialized community association lenders | 5% - 7% fixed |
| Interest rate — life company / institutional | 4.34% - 7.59% |
| Interest rate — private / alternative lenders | 12%+ |
| Term / amortization (small projects) | 3 - 5 years |
| Term / amortization (most projects) | 7 - 10 years |
| Term / amortization (major structural) | 15 - 20 years |
| Origination fees | 0.5% - 1.0% of loan amount |
| Legal and closing costs | $5,000 - $25,000 |
| Minimum loan size (traditional banks) | $250,000 |
Rates depend heavily on the association's financial health — communities with low delinquency, strong reserves, and clean governance get priced closer to the bottom of the range. Struggling associations with litigation or high delinquency may not qualify at all with traditional lenders and end up at 12%+ with private lenders.
The application process step by step
- Define the scope. Obtain 3-5 competitive contractor bids with site visits. Vague "we need a loan" requests get declined.
- Review governing documents. Determine borrowing authority and whether a member vote is required.
- Pull financial health data. Balance sheet, P&L, AR aging, reserve study, delinquency report.
- Board resolution. Formal vote to pursue financing.
- Member vote (if required). For condos under Section 718.111(7)(a), 75% of voting interests to mortgage association property if declaration is silent. For SIRS-funding loans under HB 913, majority of total voting interests.
- Request term sheets from 2-3 lenders. Compare rate, fees, covenants, prepayment.
- Submit application and documentation (see checklist below).
- Underwriting. Lender reviews financials, reserves, delinquency, SIRS report, contractor bids.
- Commitment letter. Have association counsel review every covenant before signing.
- Loan closing. Execute note, assignment of assessments, board resolutions.
- Funding. Lump-sum (term loan) or draw-based (LOC).
Documentation checklist
Financial documents
- 2 years audited or reviewed financials + YTD
- Current and proposed annual budget
- Accounts receivable aging
- Recent reserve study or SIRS report
- Insurance certificates (property, D&O)
Governance and project documents
- Declaration, bylaws, articles of incorporation
- Engineer scope of work
- 3-5 contractor bids
- Board resolution authorizing borrowing
- Member vote results (if applicable)
- Owner / unit roster and management agreement
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Florida legal requirements and votes
Condos (Chapter 718)
Section 718.111(7)(a) states: "No association may acquire, convey, lease, or mortgage association real property except in the manner provided in the declaration, and if the declaration does not specify the procedure, then approval of 75 percent of the total voting interests shall be required." This is the default — many declarations set a lower threshold.
For loans secured by a pledge of assessments rather than a mortgage on property, the declaration may require a different threshold (or none at all). Review yours carefully. Under Section 718.116, the association's assessment lien is the legal backbone of assessment-backed lending — payments must be applied first to interest, then late fees, then collection costs, then delinquent assessments.
HOAs (Chapter 720)
Chapter 720 does not include a blanket 75% mortgage approval rule. HOA borrowing authority is governed entirely by the association's declaration and bylaws. Many HOA declarations are silent on loans — which typically means the board has authority, but prudent boards call a membership meeting anyway for significant debt.
Emergency borrowing under Section 720.316: During a Governor-declared state of emergency, "the board may, without owners' approval, borrow money and pledge association assets as collateral to fund emergency repairs and carry out the duties of the association when operating funds are insufficient." This authority is limited to the time reasonably necessary to protect health and safety.
What lenders look for
Community association underwriting is different from commercial real estate lending. The lender is really underwriting the membership's ability to pay, not the physical property. Key criteria:
- Delinquency rate — Most lenders require accounts receivable 60+ days past due to be under 10%. Communities above 15% often cannot qualify. Fannie Mae flags communities where more than 15% of units are delinquent.
- Reserve adequacy — Fannie/Freddie standards require 10% of the annual operating budget allocated to reserves. 70%+ funded is considered strong under National Reserve Study standards.
- Debt service coverage — Monthly debt service must fit comfortably within the budget. Lenders stress-test for assessment increases.
- Community size — Most lenders prefer 20-25+ units minimum. Smaller communities concentrate risk.
- Single-owner concentration — No single owner should hold more than 10% of units.
- Litigation — Active structural litigation often disqualifies.
- Reserve study quality — Recent, professional study required.
- Collection practices — Historical ability to collect is critical for assessment-backed loans.
Risks and warrantability impact
A significant association loan can trigger non-warrantable status under Fannie Mae and Freddie Mac review guidelines. Non-warrantable communities cannot get conventional conforming mortgages, which dramatically shrinks the buyer pool. This affects unit resale values and owner mobility. Boards should discuss warrantability impact with their lender and a local mortgage specialist before closing on a loan.
Other risks:
- Higher assessments. A $1M loan at 6% over 15 years on a 100-unit building adds roughly $84/unit/month in debt service.
- Default consequences. If the association defaults, the bank can collect assessments directly from owners. The association can also lien and foreclose on individual units under Section 720.3085 or 718.116.
- Covenant breaches. Loans typically include covenants requiring minimum reserves, delinquency thresholds, and assessment collection — a breach can accelerate the loan.
- Political risk. Even with legal authority, boards face backlash from owners who opposed the loan. Plan for clear communication before and during the financing.
- Mortgagee notification. Failure to notify lenders holding mortgages on units can void loans secured by future assessments.
Alternatives to borrowing
A loan is not always the right answer. These alternatives should be evaluated first:
| Alternative | Pros | Cons |
|---|---|---|
| Special assessment | No interest cost, fastest | Lump-sum burden; can force owners to sell |
| Reserve spending | No new cost | Only works if reserves are adequate |
| Phased repairs | Spread cost across budgets | Risky for urgent structural issues |
| Insurance claim | Covers storm damage | Hurricane deductible gap (2-10%) |
| SBA Disaster Loans | Low interest, long term | Requires Presidential disaster declaration |
| Miami-Dade Condo Program | Up to $50K, 0% for moderate-income | Only Miami-Dade County, limited funds |
| HB 1029 state grants | Hurricane preparedness grants | $30M program exceeded capacity in 2024 |
For owners personally struggling with assessments, Miami-Dade's Axis Helps Miami program offers up to $50,000 in no-interest personal loans for condo owners — separate from association financing.
Frequently asked questions
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