As Stimulus Funds Dry Up, Private Sector Firm Provides Funding to Community Associations
Axela Technologies' HAAP program allows community associations to tap into a non-recourse funding option to receive a much-needed cash injection.
MIAMI, May 7, 2020 /PRNewswire/ -- Axela Technologies, the leading provider of collection solutions for community associations, has announced a funding program that will provide a financial lifeline at a time when HOAs and condos need it most. The funding is available nationwide, effective immediately.
"We realize that times are tough, and they are going to get more difficult for community associations," said Martin Urruela, Axela's CEO. "Community associations have received little help from the federal or state governments and are suffering due to the unforeseen hardships placed on their owners, so we're stepping up to help."
HAAP, short for Homeowner Assessment Assurance Program, advances a portion of a community's receivables in the form of an immediate cash injection. It is not a loan; it is non-recourse, interest-free, and does not require the association to sign a note or a security interest. Axela is repaid with funds recovered through their collection of delinquent accounts.
"Besides being not-for-profit entities, associations are a zero-sum business and rely on owners' assessments to pay their bills," continues Urruela. "As a collection firm, we know that most, if not all assessments will be recovered at some point, but we don't know when. Associations often don't have the luxury to wait, but we do, so we're providing the funds up front to help them meet their day-to-day financial requirements."
Until now, Axela's HAAP program has been available exclusively in Florida. Prior to the pandemic, approximately 10 percent of the company's Florida clients had applied for an advance but that number has steadily increased in recent weeks. The spike in demand is what prompted the company to open the program to other states.
"While HAAP is innovative and most certainly helpful, the way it works is simple," adds Urruela. "Instead of funding clients after we collect their money, we're funding them up front. If for whatever reason, we are unsuccessful in collecting, we lose. The advance is non-recourse, so the association will never be on the hook for amounts that we advance them."
Axela's clients who have taken advantage of HAAP have praised the program.
"One of our associations had their insurance renewal coming up, but didn't have the money," said Fabio Setton, owner of PMI Top Florida Properties, a management company based in Aventura, FL. "Axela stepped up and advanced the funds within days of our request, which saved the association from having to pass a special assessment or risk losing insurance coverage."
Taylor Pena of Marquis Association Management stated, "Axela has been providing funding for our community for nearly two years, allowing us to replicate a perfect cash flow scenario, despite the fact that several owners were not making timely payments."
The application process requires community associations to submit a roster of units that would be placed into collections with Axela. The underwriting process is fully automated, and associations can be approved and funded within 72 hours. More information on the program is available at www.axela-tech.com/haap
ABOUT AXELA TECHNOLOGIES
Axela Technologies is a collections firm specialized in recovering delinquent assessments for community associations. Axela reduces the cost of outreach and engagement by automating much of the standardized collections process while providing exceptional customer service and a centralized platform for all stakeholders to promote transparency and efficiency.
To learn more about Axela Technologies, visit www.axela-tech.com
Media Contact:
Andrea Drennen
Frontage Marketing Group
Phone: 727.557.6177
Email: [email protected]
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