HOA Financial Management: Considerations During COVID-19
As the U.S. slowly begins to re-open its retail stores, small and mid-size offices, large corporations, and hair salons, we can’t overlook the ‘business as usual’ aspect of homeowner associations (HOAs), as we navigate the ongoing pandemic. An HOA, categorized as a non-profit corporation, with monthly HOA fees paid by the community’s homeowners to be used specifically for community expenses, must be continually evaluated and re-evaluated.
When it comes to HOA financial management, expenses such as liability insurance, utilities, landscaping, general maintenance, taxes, and contributions to the reserve fund are largely fixed expenses. That doesn’t mean expenses should not be reviewed, however.
HOA financial management is the responsibility of the HOA board. The Covid-19 virus has brought new challenges to consider for optimizing the HOA maintenance funds that provide for community upkeep, service providers that maintain lawns, plow streets, provide lifeguard services at the pool, and the security services that retain a respected resale value to homeowners.
When HOA financial management is hampered because of exceptionally high unemployment, the board needs to quickly reassess its financial obligations to the best interest of the association, as the business corporation they are, to ensure the continued financial health of the community. This objective fiscal responsibility to the association, however, can be a double-edged sword of both favorable and unfavorable consequences. Even as the board is ‘duty-bound’ to look out for the business corporation’s best interest, the community’s reputation to community members can be hurt when negating the individual homeowner’s dilemma of inability to pay the required monthly assessment, due to circumstances beyond their control.
It is in the board’s best interest to find alternative options that work with and not against all community members. You can discover what those options are by calling the professionals of AR Management. AR Management has extensive experience in budgets, collection of delinquent accounts, and HOA financial management services that include the long-range financial analysis and planning to weather any ‘storm’ and retain the value of HOA life. Contact us today.