GC fees and developer fees (to the borrower), interest reserves, contingencies...these are all soft cost items that aren't usually going to be counted as loanable expenses. 2) if your bank treats any/all of the above as loanable expenses then you could very well face the requirement that fees paid back to the borrower come at the back end of the draw schedule as reimbursements after borrower equity is in place. 3) banks are now up against regulations called Basel III which create "penalties" (capital reserve requirements) for them making loans for what are known as High Volatility Commercial Real Estate.

Ditto, they would have to reimburse you.

Here's what your deal might look like, and what you'll need to have - in cash - over the life of the project:In this example, using a local D/FW HML, you'll need to come to closing with $12,539 and around $31,839 TOTAL CASH to do the deal.The way the draw usually works is you incur the rehab expense, and then they reimburse you with the draw.  

Are thoughts are to use the BRRRR strategy and the initial funding is reimbursed to the partners accordingly, nothing more.

Are we just stuck with this expense, or will the insurance for the ambulance company reimburse us for this?

Maybe you can come back later to the semi-defunct HoA and try to reimbursement.  

If he doesn't wish to pay the utility companies, is he going to reimburse you?  

If I was in your position I would agree to release her from the contract if she agrees to reimburse you for your out of pocket expenses in addition to your earnest money.

So, you have to decide if it's worth interfering, attempt to micromanage or hire your own people to do this and attempt to get reimbursement. 

The best part of this is the payments are reimbursements so they are tax free.