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Guide to HOA Financing Options
For HOA boards and homeowners, financing is not just a funding mechanism, it can be a strategic tool for managing community investments responsibly. Rather than relying solely on reserves or imposing special assessments, financing can provide a balanced approach that helps preserve long-term financial stability while minimizing immediate homeowner impact.
Thoughtfully structured loans can enable associations to complete critical capital projects efficiently and on schedule, supporting property values, safety, and overall community quality. By spreading repayment over time through regular or special assessments, financing introduces greater predictability and affordability for homeowners compared to lump-sum alternatives.
Equally important, successful financing outcomes depend on strong governance and the Community’s well developed and on-going financial plan. Lenders look closely at an association’s financial health, reserve planning, and collection practices—reinforcing the board’s fiduciary role in maintaining disciplined operations and long-term planning.
Engaging experienced HOA lenders early in the process allows boards to evaluate options, align funding strategies with project timelines, and make informed decisions that support both current needs and future resilience.
Jeff Barnett, Managing Director of Business Services at First Citizens Bank, shares his expertise in HOA financing options. The key takeaways include.
- Financing can be a flexible alternative to reserves or special assessments, helping reduce financial strain on homeowners.
- Borrowing can enable HOAs to complete projects in full rather than phasing them, improving efficiency and community consistency.
- Loan repayment is spread over time through assessments, making costs more predictable and manageable.
- Specialized HOA lenders provide guidance, industry expertise, and support throughout the financing process.
- Multiple loan structures are available to fit different project needs and cash flow situations.
- Engaging a lender early helps boards plan projects more effectively and align financing with long-term goals.
Learn more about options for financing your next association project in our Guide to HOA financing options.
Jeff Barnett Managing Director Business Services, First Citizens Bank As Managing Director for First Citizens Bank, Jeff leads the strategic growth and management for the Community Association Division of First Citizens. Jeff utilizes his 26 years’ experience in the financial sector to provide first-rate service to community association management companies and their associations. He leads the teams that collaborate with community associations daily to secure their deposits and obtain financing for community projects. Over Jeff’s tenure, he was instrumental in leading significant growth in commercial deposit and lending relationships and was the Market President in San Diego, prior to moving to Colorado. Jeff has served on the Board of Directors for the National Investor Relations Institute, The Poway Center for the Performing Arts as well as the CONNECT organization in San Diego. Before entering the workforce, Jeff was proud to serve his country for six years as an active-duty Marine involved in Desert Storm and Desert Shield in the Gulf War. First Citizens Bank’s Community Association Banking business is a national leader in providing individualized service, customized technology, smart savings solutions and operational efficiency for homeowner associations (HOA) and community association management companies nationwide. The business’ banking solutions include operating and reserve accounts, certificates of deposit, money market accounts, online banking, payments services and HOA loans. First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Founded in 1898 and headquartered in Raleigh, N.C., we provide a unique legacy of strength, stability and long-term thinking that has spanned generations. For more information on Community Association Banking, see www.firstcitizens.com/CAB. First Citizens Bank, Member FDIC Credit is subject to bank approval. This information is provided for educational purposes only and should not be relied on or interpreted as accounting, financial planning, investment, legal or tax advice. First Citizens Bank (or its affiliates) neither endorses nor guarantees this information, and encourages you to consult a professional for advice applicable to your specific situation. First Citizens Bank and its affiliates are not responsible for the products, services and content for third party vendors. Any and all third-party trademarks, logos, and service marks referenced herein remain the property of their respective owners.