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.
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.
In a competitive job market, community associations and management companies must highlight their strengths and address organizational shortcomings to hire and retain top talent, says business speaker and author Peter Sheahan.