How to navigate a loss of revenue for your association
What a year 2020 has turned out be. A pandemic, civil unrest in the wake of the Black Lives Matter movement, and economic hits like we haven’t seen in quite some time. It has been a year for the history books. Through it all your HOA or condo association must continue to run and fund itself. And since 2008, it has never been more challenging to do so.
More than 1 million people in Florida filed for unemployment. Tourism, hospitality and retail sectors have been hit hard. The members of your community, depending on their employment or financial status, may be having a hard time paying their mortgage, let alone their HOA dues. With the economic damage of COVID-19 still wreaking havoc, your community may be struggling to collect dues.
Here are 4 things you can do in lean times:
Reduce operating costs
Run an assessment of every aspect of your HOA or condo association to determine the most vital aspects and those that can be cut back. In this way you can assess where you can reduce operating costs. This is your first line of defense when the dues are dropping. Especially consider amenities and luxuries that are not necessary.
Offer payment plans or waive late fees
Sometimes it’s better to receive some payment instead of no payment at all. Consider payment plans as an alternative. Also consider dropping late fees. Sometimes when fees get piled on top of assessments it makes people less likely to pay anything at all.
Do not attempt foreclosure
With the suspension on foreclosures enacted earlier in the year, there will likely be a large backlog of foreclosure processing. Right now is not the time to foreclose on a property. Instead, consider placing a lien on a home.
Special assessments and reserves
Special assessments are a second to last resort and reserves are a last resort. Consider a special assessment only if the need is dire and only dip into reserves if you have no other option.
While times may be tough all around, experts are predicting that the fallout will not be as great as the 2008 housing collapse, so there is some reason to look on the bright side.
Through all this turmoil and unknown circumstances, we want you to know that we are here for you. If you have any questions about receiving dues and what your legal ramifications and responsibilities are, we are available to assist you.