The authority for associations to borrow money is generally found in their governing documents (Bylaws or CC&Rs). It can also be found in Corp. Code §7140(i), which allows corporations to obtain bank loans subject to any limitations found in the governing documents.Membership Approval. Check your documents before you apply for the loan. Membership approval of the special assessment (for a capital improvement, repairing the common areas, etc.) may not be enough. The ballot may also require approval authorizing the board to enter into a loan agreement with a bank. See borrowing checklist.
For a list of banks that specialize in loaning to homeowners associations, see "Banks" in our Business Directory.