In concurrence with the reconstruction funding mechanisms being pursued the Associations met with a representative from SBA over the last two days. A high level assessment of the damages related to the requested loans completed by SBA will be used to determine the final loan amount. In order to facilitate the process the Associations provided the detail cost allocations that have been completed by other adjusters. SBA indicated that the potential loan will be based on the gap between insurance coverage and actual cost. SBA indicated that a report will be submitted but there will be numerous steps before the SBA will provide a loan determination. Based on discussions with SBA this will be a slow process and obtaining a loan is not guaranteed.
As of last week the Condominium Associations requested the remainder of the first insurance layer. Based on costs to date and projected cash flow the request was for three million dollars that will fund the reconstruction operation through December 2008. Over the last three weeks the Associations have attempted to establish communications with the second insurance layer carrier but to date the carrier has not completed agreements to have an adjuster represent their interest.
Thus in the case that the second insurance layer carrier continues to stall, the Associations will review the November assessment submittals from homeowners and the anticipated cash flow. Using the fiscal limits provided within this information the Condominium Associations will develop a reconstruction schedule.
