Five Questions With: Dev Singh

Dev Singh is senior vice president of specialty banking at Webster Bank based in Providence. / COURTESY WEBSTER BANK
Dev Singh is senior vice president of specialty banking at Webster Bank based in Providence. / COURTESY WEBSTER BANK

Dev Singh is senior vice president of specialty banking at Webster Bank based in Providence. He talks with Providence Business News about his section of the business, how it differs from traditional banking groups and how condominium associations and homeowners associations think about yearly expenses.
PBN: Your focus in business banking is highly specialized. Can you tell our readers a little bit about it?
SINGH:
Webster’s specialty business banking group uses our industry expertise to provide targeted solutions to health care, not-for-profits, associations and real estate management companies located in Rhode Island, Massachusetts, Connecticut and New York.
PBN: When it comes to condominium associations, or homeowners associations, what expertise do you bring to the table? Why do they need you?
SINGH:
Webster’s Specialty Business Banking division has an experienced team of bankers dedicated exclusively to associations. We understand the unique financial challenges that community associations and property management firms are facing today. One of the things we can do is offer targeted financing solutions for capital improvements with limited collateral. We have provided financing to a number of associations for many different types of capital improvement projects. For unit owners whose associations choose to bank with Webster, we can offer discounts on personal mortgages and home equity lines of credit.
PBN: What are the biggest challenges that face these types of associations each year?
SINGH:
Many community and homeowner associations built in the 1970s and 1980s are finding out the hard way that they have underfunded reserve accounts. As a result, it has become necessary for them to take out large loans and assessments to pay for much-needed common area capital improvements, such as roofs, swimming pool, exterior walls and asphalt paving, to name a few. The problem of underfunded reserves has been further exacerbated by rising construction and material costs. It is a matter of fact that nearly all the common areas/common elements in a condominium or homeowners association have limited useful life and will not last forever. It is not a matter of if they need to be repaired or replaced; it is a matter of when, and at what cost?
PBN: Is it more difficult to work with this type of associations compared with individual businesses, or organizations with individual leaders? Why or why not?
SINGH:
We have worked with numerous community and homeowner associations and property management professionals in Rhode Island. We typically need community consensus to approve the project and the loan. Having everybody understand the sense of urgency in doing capital improvements is critical. Additionally, many of the board members are voluntary, and managing associations can be challenging. Developing a strategic long-range capital funding plan is one of the key steps that a board can take to enhance the value of the association and keep unit owners happy and the community thriving.
PBN: How have associations’ approaches to big-ticket capital improvements changed since the financial crisis of 2008? Did groups put off larger capital investments during that time?
SINGH:
The past economic crisis continues to leave many condo owners struggling. Most have been unable to afford a special assessment imposed by their Board for improvement projects. And most associations’ reserves are underfunded and can’t cover capital improvements that can’t wait. As an alternative, many associations have realized that bank loans are preferable to a special assessment. Association loans have lower payments spread out over a longer period of time. And current low interest rates make them even more attractive.

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