Client requests a $20,000 loan to help pay a special assessment from his Condo Homeowners Association. Not HMDA reportable at this point, but reading more file docs it is indicating this special assessment is due to having to replace the roof for the entire complex.

Some feel the purpose is not a home improvement since the money is given to the HOA and the client has not control after that point. Others believe it should be reported since a roof replacement qualifies as HI.

What are your thoughts?

A condo owner only owns the space within the walls of the condo. They do not own the roof. I would say no.

I would also say no.

I would relate the scenario to one where the borrower is obtaining a cash out loan to pay off credit cards they used for HI. That money is to pay debt, not for HI and in this case the loan is to pay the HOA, not HI.