The Loan Placement Program provides an extensive marketplace for lenders to compete for your community’s loan. With a single point of contact and pre- qualification, it is a unique market solution that ensures competitive rates and support for all stakeholders.

The Loan Placement Program provides a loan to the Association, not the individual. It is not a mortgage and there is no lien on individual units. Board Members sign the loan in their capacity as Board Members.

The collateral is a pledge of assessments. If the association's payments to the lender are current, there is no effect on the association. If there is a default, then, and only then, the lender will have a right to collect the assessments from the members and apply those sums to the payment of the loan.

Lenders for this type of loan are not involved in the individual resale of units.

Loans enable a community to address funding gaps. Loans are often more palatable to owners than a large assessment, and potentially more cost-effective than a phased approach to completing necessary projects.

Loans involve interest cost to the bank and closing costs that include the communities attorney, transactions fees and bank legal review.

Typical loans range in time from 5 to 15 years. Longer term alternatives may be available on a limited basis.

here are two typical loan structures. The first is a term loan whereby there is no interest only period. Instead, principal and interest payments begin immediately after loan closing. This is usually the most cost-effective option. For this option, funds are typically given to the association at closing and the Association uses the funds as they would regular reserve funds. The second option is a loan with an interest only draw period followed by a predetermined payback period. The loan starts from $0 after which the association completes draw paperwork to draw funds until sufficient funds have been drawn to complete the project. The maximum interest-only period is usually 12–18-months. This type of structure may require additional lender fees due at closing.

Associations evaluate the financial impact to owners when selecting how to repay the loan. Three options are usually considered:

1. Build repayment into the regular budget, oftentimes increasing common charges.

2. Implement a special assessment to match loan payments.

3. Offer a hybrid approach where some owners prepay upfront while others participate in the loan. In this scenario, owners participating in the loan will have a monthly loan assessment in addition to their regular assessment. This approach has the advantage of giving owners flexibility while still providing a financing option to owners who need it.

Overwhelmingly, yes. The program provides association boards additional flexibility to address funding gaps while also providing competitive rates and support throughout the entire loan process.

Reserve cash management is the process of actively monitoring and maximizing community reserve funds. Proper financial management includes analyzing cash balances, identifying earnings opportunities, reporting, and ensuring liquidity as your community requires.

No. The platform accesses a preferred network of financial institutions that specialize in helping Community Associations maximize interest income for their communities.

This program does not require you change any existing relationships. We find it advantageous for our communities to have access to multiple value-added products and services. We are pleased to offer this program as Community Associations selecting the platform’s CDs and money market accounts earn greater interest income compared to most alternatives.

Fees may be charged for the placement of Certificates of Deposit. Access to the platform’s money market network is paid for by participating financial institutions and partners.

The platform provider may share compensation it earns from participating financial institutions and partners with the management company to offset costs for its assistance in administering the program.

Yes, all participating financial institutions provide deposit insurance through either the FDIC or the NCUA. Several institutions also provide full insurance coverage above standard limits, allowing a community to be fully insured regardless of total cash balances participating in the program.

Ampersand, Inc. is a financial services firm revolutionizing deposit management – partners with CommonArea to offer you industry leading rates and unparalleled service. With Ampersand, you ensure the safety of your deposits while unlocking their full potential. Ampersand, also known as Ampersand Public Advisors, LLC., is a registered Municipal Advisor with The Municipal Securities Rulemaking Board (MSRB) #K1337.

American Deposit Management (ADM) participates in the platform’s financial institution network. It specializes in offering nationally-competitive rates for CDs and money market accounts. The company manages over $6B in assets. ADM is a municipal advisor registered with The Municipal Securities Rulemaking Board (MSRB) #K0353.

Capital reserve fund accounts require special attention and should have a strategy separate from those funds needed to operate the community on a day-to-day basis.

We are highly selective in inviting banks, credit unions, and other financial institutions to our cash and reserve management program. Our partners have decades of experience working with Community Associations to maximize their investments. Among other criteria, financial institutions are selected by evaluating both their technical capabilities and financial stability using Kroll Bond Rating Agency (KBRA) financial intelligence ratings. For additional information, visit www.kbra.com.

All community data is handled in compliance with strict financial institution guidelines. Data access is limited to authorized individuals or organizations.

Board Members are usually the signatories. Per federal regulations, signers on accounts will be required to provide their social security number, date of birth, and a copy of their driver’s license or passport. If Board Members do not want to provide their personal information, our company’s representatives will be signers for the accounts.

We are industry veterans who set out to improve the financial health of communities. We do this by empowering managers and their communities with tools to drive better financial outcomes (i.e., incremental, compounding revenue!!).

We built the only platform specifically designed for community managers to easily and actively manage reserve and cash investments. Our clients - who manage over 7,000 communities - are doubling their communities' annual earnings by getting the best rates with the only financial marketplace tailored to the needs of the industry.

Most likely! Our marketplace offers over 500 FDIC-insured, community association-focused financial institutions. If you don't see your bank, we can invite them to our platform. Additionally, our program does not require you to change any existing relationships.

CommonArea's marketplace only provides products that will not lose principal. We offer CDs and Money Market accounts with great returns so your communities can plan their budgets with confidence. All deposits are insured through FDIC or NCUA.

We send alerts for CDs coming due - plus any custom hot opportunities for investing community cash - and then serve you custom investment opportunities in a board-ready report.

The CD and Money Market rate is net of fees, so there is no fee charged to communities or managers. For loans, there is a fee for loan placement.

Yes, the digital tools organize data and create efficiencies while the network of association banks offer nationally-competitive rates for greater earnings. No need to call around for rates and create a document for boards.

Yes! Our platform will pre-qualify your association based on standard underwriting guidelines. The board will be presented various options, allowing you to select the best choice for your community's needs.