BAM Construction
Construction Financing
for South Florida HOAs
Reserve shortfalls and special assessments don't have to delay SB 4D remediation or restoration. BAM coordinates community association loans, insurance bridge financing, and phase-funded construction draws so repair starts on schedule. Our fixed-price contracts and federal-grade documentation satisfy the requirements lenders impose on the contractor.
The Reserve Gap Crisis
Most Associations Facing SB 4D Remediation Are Underfunded
Florida's SB 4D milestone inspection mandate creates hard remediation deadlines. Phase 2 remediation must begin within 365 days of a Phase 1 report that identifies structural or life-safety concerns. Most associations facing that deadline have reserve funds covering 15 to 30 percent of required repair costs. The remaining 70 to 85 percent must come from somewhere.
The options boards typically reach for first — levying a special assessment, deferring repairs, or asking individual owners for loans — each carry serious political, legal, or financial consequences. A special assessment large enough to cover a $2 million restoration scope means a per-unit cost of $20,000 to $40,000 for a mid-size building. That level of assessment triggers board elections, owner lawsuits, and collection failures. Deferred repairs compound structurally at a rate of 15 to 25 percent annually. Neither option solves the problem.
Community association loans require a licensed, bonded GC. Lenders require a fixed-price contract from a surety-bonded general contractor before they will close a community association loan. BAM's fixed-price contracts, bond, license, and DOD-standard documentation package are the contractor deliverables lenders need to underwrite and close the loan.
Financing Options Compared
Special Assessment vs. Community Loan vs. Delay
Financing Types
Programs BAM Coordinates for South Florida Associations
BAM does not lend money. BAM provides the contractor deliverables that lenders require: fixed-price contracts, bond documentation, and federal-grade draw request packages. The right program depends on building type, scope, and timeline.
Community Association Loan
Bank or credit union loans issued directly to the association. Board resolution approval. Repaid through monthly maintenance assessments. Available from $250K to $5M+ for South Florida associations. Typical terms: 5, 7, or 10 years. BAM's fixed-price contract and bond are the primary lender requirements.
Insurance Claim Bridge Financing
Short-term bridge loan covering the gap between repair start and insurance claim settlement. Useful when the carrier has accepted the claim but has not yet issued the full payout. Repaid from claim proceeds at settlement. Allows restoration to start without waiting 6-18 months for the claim to close.
SBA 504 Commercial Restoration
SBA 504 loans for commercial condo associations and mixed-use buildings where the association qualifies as a small business entity. Provides below-market fixed-rate financing for building improvements. Longer repayment terms (10-25 years) reduce monthly payment impact. BAM's documentation package satisfies SBA draw disbursement requirements.
Phase-Funded Construction Draws
Construction loans with disbursements tied to completed milestones rather than a single upfront advance. Reduces interest carry and lender risk on large scopes above $2M. Each draw request requires documentation of completed work. BAM prepares draw packages with inspection sign-offs, material certifications, and photo logs that meet lender draw disbursement standards.
Developer and Owner Entity Financing
For developers, single owners, and LLC-held multifamily properties that do not qualify for HOA loan programs. Conventional construction lines, commercial bridge loans, and hard money programs are available for permitted restoration and improvement scopes. BAM's bonded GC status and fixed-price contracts satisfy lender contractor underwriting criteria for these programs as well.
BAM Lender-Ready Contract Package
Fixed-price contract, AIA-format schedule of values, payment and performance bond, current general contractor license, certificate of insurance, and draw request template formatted for lender submission. This package is what lenders require from the contractor before underwriting closes. BAM delivers it as a standard project onboarding document, not a custom request.
Process
Scope to Loan Close in 60-90 Days
Financing does not have to delay construction. BAM runs lender coordination in parallel with permitting and mobilization so both close at the same time.
Scope and Fixed-Price Contract
BAM completes scope assessment and delivers fixed-price contract with AIA schedule of values. This document initiates both the permit application and the lender underwriting process simultaneously.
Lender Prequalification
Association submits loan application to lender with BAM's contractor package attached. BAM provides additional documentation as requested during underwriting. Board resolution is passed. No unit-owner vote required for most community association loan programs.
Loan Approval and Permit
Loan closes and permit is issued in the same window. BAM submits permit application during lender underwriting so both approvals arrive within days of each other. No waiting period between financing close and mobilization.
Construction and Draw Requests
BAM manages construction and prepares draw request packages at each milestone. Each draw package includes inspection sign-offs, certified material delivery records, percent-complete documentation, and lender-formatted cover page. Draw requests are submitted on the lender's schedule.
Loan Closeout and Documentation
BAM delivers final lien waivers, permit closeout, and SB 4D compliance documentation package simultaneously with loan final draw. Association receives a clean permit record, SB 4D closeout documentation, and proof of loan paydown — all in one delivery.
Average community association loan close time from application submission to funding. Does not derail SB 4D remediation deadlines when started promptly.
Community association loan programs available from $250K to $5M or more for qualified South Florida associations with adequate monthly assessment revenue to service the debt.
Most Florida condo and HOA governing documents allow the board to approve a community association loan by board resolution without a unit-owner super-majority vote. Verify your documents with association counsel.
Structural repairs that are deferred typically increase in scope and cost at 15 to 25 percent annually as deterioration progresses and additional areas become affected.
Common Questions
HOA and Condo Construction Financing
It depends on the specific governing documents of the association. Florida Statutes Chapter 718 (Condominium Act) and Chapter 720 (HOA Act) permit associations to borrow money for capital improvements with board approval under most standard declarations and bylaws, without a unit-owner vote. However, some governing documents impose additional requirements, such as a super-majority board vote, a membership vote, or a borrowing cap. BAM recommends that association counsel review the governing documents before the board proceeds with a loan application. In most cases, a standard community association loan for SB 4D remediation proceeds on board resolution only.
Lenders issuing community association loans typically require four documents from the contractor before underwriting closes: a fixed-price contract with an itemized schedule of values, a current general contractor license in the state where work will be performed, a certificate of insurance naming the lender as an additional insured, and a payment and performance bond. Most lenders also require the contractor to be surety-bonded at a coverage level commensurate with the contract value. BAM delivers all four documents as standard project onboarding materials. The association does not need to request them; BAM produces them as part of the initial contract package.
In most cases, lenders prefer that material construction draws do not begin until the loan closes and funds are disbursed to a construction escrow account. However, pre-construction activities — engineering, permitting, scope finalization, and material procurement — can proceed during the underwriting period without implicating loan disbursement requirements. BAM runs permitting and mobilization planning in parallel with lender underwriting so that the permit is ready to issue at roughly the same time the loan closes. This parallel-track approach ensures that construction starts within days of loan close rather than weeks, which is important for associations managing the 365-day SB 4D remediation clock.
Insurance bridge financing is a short-term loan that covers the gap between the date repairs must begin and the date the carrier issues the final claim settlement. After a major storm event, insurance claim settlements in South Florida typically take 12 to 24 months to close, but the building cannot wait that long if structural damage creates a life-safety condition or triggers an SB 4D finding. A bridge lender advances funds against the documented claim value so that repairs can start immediately. The bridge loan is repaid from claim proceeds when the carrier settles. BAM's scope documentation, damage assessment reports, and permitted repair records are the same documents the insurance adjuster uses to calculate settlement value, so there is no duplicate work. BAM can assist in coordinating bridge financing referrals with lenders who specialize in this program.
Start Here
Request a Financing Coordination Review
Tell BAM about the scope and the funding gap. BAM will confirm which financing program fits your building type and SB 4D timeline, and deliver the contractor documents your lender will require before underwriting can close.
No current lender relationship required. BAM can refer associations to community association lenders in South Florida who have funded projects of similar scope and building type. The referral is not a guarantee of approval; it is an introduction to the correct program for the scope.
Received
BAM will review your project details and respond within 48 hours.
Miami-Dade, Broward, Palm Beach, and statewide Florida