Nearly 75% of community association board members express being “confident” or “very confident” regarding the current budget, though almost half expect assessment delinquencies to increase in 2020, according to a CAI survey conducted in late April.
It is critical that every homeowner pays their assessments in a timely manner, yet the extraordinary circumstances created by the COVID-19 pandemic means community associations may need to show compassion and be flexible in their collections.
Despite common areas and amenities being closed due to COVID-19, it’s still necessary for community associations to collect assessments to meet ongoing maintenance requirements and contractual obligations.
Failing to collect assessments may impair an association’s ability to pays its bills and provide essential services, but it’s important for boards to be flexible with homeowners who are facing financial hardship.
Just like for-profit businesses, association boards should work diligently to develop annual budgets that estimate revenue and expenses for the upcoming fiscal year. A properly drafted budget can help prevent reduced services, deteriorating property, or special assessments.
