As of the beginning of this summer (1 July 2011), presidents of communities can get a mortgage for their community. Up until now the law required that any mortgage that was taken out by a community required the signature of all the owners. This has meant that in the past for communities to get a mortgage in order to do repairs or new installations, it meant a huge and sometimes to an impossible tasks. Bank managers repeatedly refused giving out such mortgages unless the AGM or EGM documents had approved unanimously by 100% of owners. Many communities have needed to make certain changes, improvements or new installations many of which were required by law, but the lack of funds and the issues that affected them from obtaining a mortgage until now made these jobs impossible.
In many cases and even more now, it is impossible for some owners to even pay their standard community fees, let alone come up with large sums to cover such huge construction or repair expenses. Many of these repairs or installations are a requirement by law (la ley de conservación de edificios).
The Article 20 of the new law about the new measures and help for mortgages also covers and finally allows the president of the community to obtain a mortgage for a community without needing a 100% of the votes.
The new law will allow the presidents of communities to apply for a mortgage as far as the subject has been approved at an official community meeting and approved by majority and not necessarily all owners.
This is a huge step towards improving the law and recognizing the president as a legal representative. The college of administrators have welcomed this approval which will improve the restoration and maintenance of many buildings and urbanizations.