A case for financing your HOA roofing project
I am not a financial advisor; this article is not intended to be financial advice, always seek advice from a qualified professional.
Since I am a qualified expert on the topic of roofing and reroofing projects, this article will be about the advantages of doing a large roof project at one time as opposed to phasing it out over several years.
It seems the first instinct of many boards is to avoid financing and try to spread out the work over several years. Sticker shock could be part of the challenge. The cost of the re-roof project for the entire community can be pretty intimidating. Since most HOA boards consist of homeowners who perhaps are not used to six-figure price tags and they, look at it using debt negatively. The knee jerk reaction is to do special assessments, save money, and pay for "X" number of roofs per year.
Don't do it!
Before you start down the path of a phased-out project, check all your options. Phasing out a large project over time should be your absolute last resort. Only to be entertained when all options are exhausted.
There are several great reasons why you should do all the work at once. Hopefully, after I show you these reasons with you, you'll understand why it is that I'm such a strong proponent for doing all the work at the same time.
The first reason for doing all the work at once is a good idea is that it is simply "Cheaper." The cost of materials and labor is better when purchased in bulk Prices can and will rise in upcoming years, and the cost to set up and tear down can be expensive as well. Setting up for a project isn't free. Additionally, when we are doing a large project all at once, it's more attractive to larger companies with better resources, who may not otherwise be interested in bidding on a phased-out project. The same holds with material manufacturers, contractors who order significant amounts of materials at once they have much more leniency and get a much better rate.
Having the work done all at once increases the chances of having the same crew(s), the same project manager(s), and the same quality assurance person running the project. If the project is phased out over several years, there is no guarantee you'll have the same people from year to year. By doing the work at once, it is much easier to maintain a higher and consistent standard of quality control and quality assurance. A great contractor, this year, could be a terrible contractor two years from now. That's a heck of a gamble with your community money.
Any large project in any community is a stress on the community. Suddenly, as it seems, contractors are always on-site. Workers are running around; driveways are blocked, trucks in and out, loud noises and on and on. By doing the work all at once, the roofers may be on-site longer than doing a few buildings at a time, but once they are finished, THEY ARE DONE and "poof" they are gone forever. So you'll have roofers on site for a few months or on-site nearly all the time for years.
No Chasing Leaks!
As I said, you could have roofers on site all the time for years. The roofs are still getting older, and every time it rains, more leaks pop up. Every time it rains, whether the roofer is already on-site or not. Here comes the roofer chasing those leaks. There you are once again with angry occupants trying to get the roofer and spending more and more money. Remember, I said in my first point, that doing all the work at once is cheaper. Wee, this is another example of why it is more affordable.
There you have it:
- Less Stress
- No leak chasing