Frequently Asked Questions

What is current status on this?
On 7/1/22, Glennbrooke Ridge POA Board entered into a loan agreement with Pacific Premier Bank, as previously approved by association members.

What are the loan terms and what is this paying for?
  • The loan terms are $250,000 dollars to be repaid over a period of 10 years. The interest rate at time of closing is 5.38%.
  • There are currently approximately $160K in known infrastructure issues, remaining balance of loan amount would be applied to future infrastructure issues only
How soon can these funds be available for infrastructure financing?
Funding availability is currently expected no later than 7/8/22.
If we approve this loan, how much will my monthly assessment go up?
Effective 8/1/22, Glennbrooke Ridge POA’s net monthly assessment is $604.
If the association defaults, will individual owners be responsible for repayment of the loan?
No– Owners are not being collateralized for the loan, nor are they personally guaranteeing it.
Does this loan guarantee that there will be no further near-team special assessments?
No, but it greatly lowers the likelihood and sets a fairly high bar for passing such assessments. Without the loan, additional special assessments over the next five years (effective immediately) are pretty much inevitable.
What does the bank use for collateral?
  • Assignment of Common Charges/Assessments
  • No personal guarantees
  • No liens on individual units

(for additional information, please consult the PPB FAQ)

Can I pay off my share of the loan early and avoid interest payments?
Yes. The early pay-off policy and schedule is available at this link.
Can the entire loan be paid off early or refinanced?
Yes. There will be reporting on this loan at annual association meetings until it is paid off, with opportunities for the association to vote on early pay off or refinancing– including opportunities to reduce monthly payments.
What happens if an owner fails to meet the monthly loan payment?
The association would be required to make up the difference. Should the association be unable to make loan payments on a timely basis, the bank has a right to directly collect assessments from owners.
How will the loan impact the sale of a unit?
Since the association is paying the loan back from the regular operating budget, there should be little to no impact on an owner should they sell.
Who decides how this money gets spent? Are there financials controls on this?
      1. Pacific Premier Bank will only disburse funds for specific payment of infrastructure-related expenses supported by contractor invoices.
      2. Disbursement requests must be signed for by at least two of the following association officers: Board Chair, Treasurer, or Secretary
      3. Disbursement requests must be approved by majority board vote at a regularly scheduled board meeting
Is a current reserve study required in order to proceed with the loan?
  • No– PPB has agreed to proceed on the basis of an analysis of the 2016 reserve study, in conjunction with documentation of capital improvements carried out since that time
  • Regardless, a current reserve study is now in progress
If one or more of our buildings are destroyed, how would insurance claim proceeds be distributed between owners, lien holders, and PPB?
    • As a lienholder, PPB would be listed on the association’s insurance policy only, having no direct involvement in individual owner’s insurance claims
    • In the event the entire association (currently valued at approximately $8,140,000) suffered a catastrophic loss, PPB would reserve the right to use association insurance proceeds to pay off the remaining balance of the $250,000 loan currently in underwriter review.

Q&A Session

(Recorded April 19, 2022)

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