HOA Management Experts | Aperion Management Group
  • Home
  • Services
    • Community Management
    • Financial Management
    • Architectural Review Management
    • Technology Management
    • Consulting
  • About
    • Team Philosophy
    • Press and News
    • HOA Learning Hub
    • Events
  • Owner Resources
    • Payment Portal
    • Homeowner Email Sign Up
    • Homeowner Association Terminology
    • How to Make Payments
    • FAQs
  • Careers
  • Contact Us
    • Vendor Forms
    • Information Request
    • Request a Proposal
  • Home
  • Services
    • Community Management
    • Financial Management
    • Architectural Review Management
    • Technology Management
    • Consulting
  • About
    • Team Philosophy
    • Press and News
    • HOA Learning Hub
    • Events
  • Owner Resources
    • Payment Portal
    • Homeowner Email Sign Up
    • Homeowner Association Terminology
    • How to Make Payments
    • FAQs
  • Careers
  • Contact Us
    • Vendor Forms
    • Information Request
    • Request a Proposal
Search

Assessments matter: Keeping up with association costs during the COVID-19 crisis

5/8/2020

0 Comments

 
Common Ground Magazine May/June 2019

BY MAUREEN RADON, MBA, CMCA 
​
Facilities and finances probably weren’t top of mind for many community association residents before the COVID-19 outbreak. Now, as residents spend more time at home and household income possibly decreases, association expenses have come into focus. Are costs going down because the pool is off limits? Is the association saving money since the clubhouse is closed and kids can’t play in the playground? How does this impact my assessments? 
 
Homeowners are asking whether associations plan to decrease or completely hold off on charging assessments. It’s a tough conversation for community association board members and community managers to have because we know this isn’t a possible outcome regardless of the circumstances.
 
Those of us who have managed communities through tough economic downturns know that collections will be challenging, and it will take a while for association finances to recover. That still doesn’t mean assessments can stop or decrease for contracted maintenance and upkeep, or that the value of our management services goes down.
 
Temporarily closing the pool doesn’t stop ongoing maintenance requirements. Cancelling the contract would have an adverse impact on property values once the pool fills with algae and parts break, requiring larger expenses than would have been incurred to maintain it as usual.
 
Cutting back on landscaping services would have a similar result, as overgrowth or dead plant material would negatively impact the community both short- and long-term. Minimizing the value of contracted security takes away a great asset that keeps eyes and ears on the property and enforces facility closures. These contracted expenses were put in the budget for a reason, and they’re still important.
 
Projects that have been budgeted in the reserves fund and planned for years should go on as long as proper safety and social distancing measures are taken by contractors. Managers and contractors may find it’s easier to accomplish some projects while fewer owners are in the common areas, such as repainting interiors, replanting areas with heavy foot traffic, and making repairs to laundry facilities that have constant use.
 
If it can be avoided, the reserve fund should not be used to offset operating costs; associations that use reserve funds in this way will take years to recover. 
 
How about the community management contract? Homeowners may believe that community managers now have fewer obligations since amenities are closed, but there are still contracts to coordinate, residents to assist, and legal requirements to meet. It’s not an option to let the insurance lapse or choose to let litigation go unanswered. Someone needs to pay the association’s bills, process architectural review applications, and keep the proverbial wheels for the association going in all sorts of ways. 
 
Now is the time when community managers can become familiar with their association’s budget and figure out if there are any places to cut costs, deploy resources to accomplish projects under a changing timeline, and build deeper relationships with the contractors who service their communities.
 
How will your community handle questions from homeowners about assessments? Comment below.
 
Maureen Radon is a senior community manager with Aperion Management Group, AAMC, in Central Oregon. 
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Archives

    November 2022
    August 2022
    July 2022
    May 2022
    April 2022
    March 2022
    December 2021
    October 2021
    September 2021
    July 2021
    April 2021
    January 2021
    October 2020
    September 2020
    June 2020
    May 2020
    April 2020
    December 2019
    August 2019
    July 2019
    May 2019
    April 2019
    March 2019
    January 2019
    October 2018
    September 2018
    August 2018
    July 2018
    April 2018
    January 2018
    October 2017
    September 2017
    August 2017
    July 2017
    November 2016

    RSS Feed

Serving Central, Southern and Western Oregon

Portland, Bend, Salem, Eugene, Medford and all surrounding areas.
Mailing Address:
855 SW Yates Drive

Bend, OR  97702
​VISITORS BY APPT. ONLY
Aperion Service Areas

Contact Us

​Phone: 541-389-3172
Fax: 541-678-5204
Email: info@aperionmgmt.com
  • Home
  • Services
    • Community Management
    • Financial Management
    • Architectural Review Management
    • Technology Management
    • Consulting
  • About
    • Team Philosophy
    • Press and News
    • HOA Learning Hub
    • Events
  • Owner Resources
    • Payment Portal
    • Homeowner Email Sign Up
    • Homeowner Association Terminology
    • How to Make Payments
    • FAQs
  • Careers
  • Contact Us
    • Vendor Forms
    • Information Request
    • Request a Proposal