“ Postponement carries hidden costs.”
“ Partnering with a financial institution that understands the timeshare space makes all the difference.”
RESORT SOURCES Page 49 Jul / Aug, 2026 | TimeSharing Today
When Financing for a Timeshare Capital Project Makes Sense-
And How to Prepare
By Matthew Engblom, Vice President, Timeshare HOA Banking, Western Alliance Bank
When a timeshare property faces a major expense, such as capital projects, deferred maintenance, or unexpected damage, the next question is: how and when should your association finance it?
The decision to begin or postpone a major upgrade or repair is a daunting one for timeshare management companies, owners and governance boards alike. In the short term, deferring the expense might seem easier on the budget. But with insurance and construction costs rising, savvy boards know postponement carries hidden costs.
When reserve funds are insufficient or already earmarked for another project, you have more options than you may realize. That includes seeking out a trusted financial partner with timeshare expertise.
Yet many board members don’ t even know timeshare association lending exists. Historically, boards either special assess owners or turn to lenders that may charge rates up to 15 %, because few banks understand how associations work.
“ Postponement carries hidden costs.”
Partnering with a financial institution that understands the timeshare space- an even more niche area than a standard HOA- makes all the difference.
Here’ s what a specialized association banker will tell you that other banks might not.
The Hidden Costs of Deferred Maintenance
Postponed projects have hidden costs that must be factored into the equation.
“ Partnering with a financial institution that understands the timeshare space makes all the difference.”
www. timesharingtoday. com to start or renew memberships.
Unaddressed problems exert downward pressure on your organization’ s financial health. That’ s when borrowing can make a lot of sense. It eliminates the need to choose between an upgrade or repair and a robust cash reserve.
One significant advantage of working with a lender familiar with associations: you can consolidate multiple projects into a single loan. If a property needs roofing, siding and pool repairs, tackling them together may allow a contractor to reduce overall costs by 10 %-15 %.
Beyond direct project savings, infrastructure improvements like a new roof or updated siding often reduce insurance premiums, which ultimately lowers maintenance fees for every owner. And owners( and prospective buyers) get more use and enjoyment from a property that is updated and well-maintained. That emotional investment is part of the equation, too.
Understanding Timeshare Financials
Timeshares operate differently than traditional HOAs or condominiums. Because they typically receive their entire operating budget in one annual payment, budgeting discipline is critical. Boards must plan carefully, because that one annual influx must carry the organization through the year.