The possibility of obtaining financing for the whole community has been real for several years. When there are emergency works in the block and community accounts are low, the option for the community to apply for loans is one of the only ways to deal with this expense. In addition, these credits are quite recurrent when we are facing small communities that have less money because they enter a few monthly installments. The maintenance of a community of neighbors must be constant, but in addition, if it is a building of 30 years or more, the renovation of the facade, placing or reforming the elevator and making improvements in accessibility, for example, may entail huge expenses.
Main aspects of these loans for the community of owners
There are promoters and builders who finance the works in the buildings, but they are few and so we must resort to the loans for communities. Law 8/2013, of June 26, on urban renewal, regeneration, and renovation, states that ” the powers granted to neighboring communities, groups of owners and housing cooperatives are extended to act in the real estate market with full legal capacity. for all operations, including credit. ” This means that neighboring communities can present themselves as a legal entity (as a company would, for example) when requesting a loan. Only the signature of the president will be necessary and there is no need to present additional guarantees such as a guarantee or mortgage.
Although there are not many entities that grant these loans, those that usually grant them put a maximum repayment term of 10 or 15 years, with a grace period of about two years. Regarding its cost, it varies depending on the entity, since there are those who offer these loans at variable interest and who do it at a fixed interest rate. In addition, as they are loans destined for the reform or rehabilitation of the block, we will need a budget of the same one as justifiable to present it to the entity.
ICO credits to reform our home or common areas
We used to talk about bank loans, but we can also access state financing to rehabilitate our building. The new ICO financing this year includes the possibility of subscribing to the ICO Business and Entrepreneurs 2018 Line. According to this, individuals, communities of owners and groups of communities of owners can request up to 12.5 million euros for the rehabilitation of housing and buildings or reform the common areas.
This option is one of the cheapest in the market and to request it we must go to a bank office that offers it. Well, even if it is state-owned, the banks act as intermediaries and they are the ones who would study the feasibility of our ‘community loan’. However, if disagreements arise between the owners and the idea of requesting a joint loan is undone, each neighbor must contribute the money on their own. So a recurring option is that some owners ask for a personal loan to deal with the spill.