Romer Debbas LLP is an industry leader when it comes to representing lending institutions issuing financing to cooperative and condominium boards and when it comes to boards obtaining financing. Having been involved in these transactions from both sides of the table, our attorneys are able to provide board clients with practical advice and guide them through the refinancing process.
Common Interest Realty Association (CIRA) loan
There is a common misconception that financing is not available to condominium associations. The reason for this is that condominium associations do not own the building and therefore have no real estate to pledge. However, CIRA loans, which are secured by a building’s receivables (i.e. common charges etc) are becoming a more common way for a condominium to raise capital to fund necessary repairs and building improvement or other costs and expenses.
Underlying Building Mortgage Refinance
Unlike condominium associations, cooperative corporations generally own the land and building associated with the property. This has historically enabled cooperatives to obtain financing secured by the real estate which often provides funding for improvements while, at the same time, lessening the financial impact on unit owners.
