As the vaccination rollout continues, many community association board members, managers, and professional business partners are wondering what comes next. Will amenities reopen? Will virtual meetings continue? When can we hold in-person events again? Can more employees work on-site now?
The COVID-19 pandemic is leading to higher operating expenses and unanticipated costs for many community associations. Taking note of financial impacts now can help associations better prepare for the future.
Some community association boards have sought guidance about whether using reserve funds is appropriate to address potential cashflow issues caused by COVID-19. Here are some things to consider.
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.
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.