SOLUTIONS
When a condo corporation faces a special assessment, unit owners are usually asked to pay the full amount upfront. For condo owners facing special assessment costs, that can mean 30 to 90 days to find thousands of dollars per unit.
Condominium Lending Group gives the corporation another option. The corporation borrows, completes the work, and repays over time through monthly common expense contributions. No personal guarantees. No owner credit checks. No security registered against individual units.
For illustration, a 100-unit building facing a $500,000 funding gap may be looking at a $5,000 per-unit assessment if the full amount is collected upfront. With corporation-level financing, that cost can often be spread over a defined term and repaid monthly. The exact monthly amount depends on the loan size, rate, term, and approval structure.
Financing Arranged
Condo Corporations Served
Provinces & Territories Served
Initial Response Time
THE PROBLEM
A condo special assessment is an extra charge levied on unit owners when the corporation needs money beyond the regular budget or reserve fund. A special assessment on a condo often comes from an underfunded reserve, a repair that cannot wait, or a building system that failed earlier than expected.
The repair is usually not the problem. Buildings need work. The problem is how the cost is collected. A condo special assessment asks every owner to pay their share at once, often with a short payment window.
Some owners can absorb that. Many cannot.
Owners who bought recently may feel the impact even more. They may not have lived in the building during the years the reserve fund was underfunded, but they still receive the full bill. Boards that issue a large special assessment without showing alternatives can face owner pushback, delayed approvals, and hard questions at the meeting.
THE FINANCING OPTION
Condominium Lending Group lends directly to the condo corporation. The corporation uses the funds to complete the repair, cover the shortfall, or move the project forward. Repayment is collected over time through monthly common expense contributions.
The loan is made to the corporation, not to individual owners. Owners do not apply for separate loans. They do not provide personal financial information, personal guarantees, or security against their units.
This gives the board a practical alternative to collecting the full amount upfront. Instead of asking each owner for thousands of dollars at once, the corporation can present a monthly repayment structure tied to the building’s financing plan.
For a 100-unit building facing a $500,000 project, a direct special assessment means $5,000 per unit. With corporation-level financing, the cost can be spread over a fixed term and repaid monthly. The final repayment amount depends on the loan amount, interest rate, term, and approval structure.
Provincial terminology
The wording changes by province, but the funding problem is similar.
In Ontario and most provinces, boards usually call it a special assessment. In British Columbia, the common term is strata special levy. Some owners search for special levy strata financing, but the usual BC wording is strata special levy.
A strata special levy is collected from strata lot owners for a specific purpose, often when the contingency reserve fund is not enough to cover a major repair or replacement. In Ontario, condo corporations may use a borrowing bylaw when the corporation needs to finance work that cannot be funded through the current budget or reserve fund.
Condominium Lending Group structures financing around the rules that apply to the corporation’s province. The board still needs the right approvals. The difference is that financing gives owners another option besides paying the full special assessment or special levy upfront.
HOW IT WORKS
Most corporations receive an initial response within one business day. The full timeline depends on the project, the documents available, and the approval process required in your province.
Send us a short summary of the building, the special assessment amount or funding gap, the reason for the assessment, and the timeline owners are facing.
We review the reserve fund study, financial statements, project details, budget, and any owner communication already prepared. From there, we give the board a preliminary view of what financing may look like.
Once the financing structure is confirmed, the board can present the repayment terms, estimated owner impact, and approval requirements to owners. We provide clear financing summaries so the board is not trying to explain the numbers from scratch.
After the required approvals are complete, funds are advanced directly to the corporation. Repayment begins through monthly common expense contributions or strata fees.
WHO WE WORK WITH
We work with registered corporations where the cost belongs to the building, not to individual owners taking out personal loans.
Registered condo corporations facing a special assessment because the reserve fund cannot cover a major repair, replacement, or unexpected building expense.
BC strata corporations dealing with a strata special levy, contingency reserve fund shortfall, or common property repair where owners are being asked to fund a large amount upfront.
Mixed-use condo corporations with residential, retail, office, parking, or commercial components. These files can be more complicated, but the core question is the same: can the corporation support repayment and approve the financing properly?
No. The loan is made to the condo corporation as a legal entity. It does not appear on an owner’s personal credit report and does not affect their personal borrowing capacity. Owners are not asked to provide personal financial information, personal guarantees, or security against their units.
In many cases, yes. The board usually approves the financing structure first, then the corporation follows the approval process required under its provincial legislation and governing documents. In Ontario, borrowing is commonly approved through a borrowing bylaw. In BC, strata corporations have their own approval rules under the Strata Property Act.
Yes. A condo corporation loan does not prevent unit sales. The loan is a corporation obligation, not a personal loan registered against the owner. The existence of the loan may be disclosed through the status certificate, Form B, or other province-specific disclosure process when a unit is sold.
They are similar concepts under different provincial language. A special assessment is the term commonly used in Ontario and many other provinces. A strata special levy is the term used in British Columbia.
Both can create the same pressure for owners: a large bill due within a short period. Financing gives the corporation another way to fund the work and spread repayment over time.
Most corporations receive an initial response within one business day. For reserve fund or special assessment financing, the full process from initial inquiry to funding often takes 2 to 4 weeks, depending on the documents available and the approval process required.
Sometimes. In other cases, the board may use financing to reduce the size of the assessment, extend the repayment timeline, or give owners a clearer alternative to a large upfront payment. The right structure depends on the project cost, reserve fund position, owner approval process, and repayment capacity of the corporation.
GET STARTED
Tell us what your building is facing, what the assessment may cost, and what timeline the board is working with. We will review the situation and explain what financing could look like before your board commits to a final communication to owners.
