Do rules still need to be enforced?
Boards need to be aware of how shelter-in-place mandates
affect the daily lives of people in the community and should
consider flexibility on rule enforcement during this time. For
example, with shared amenities closed, boards may want to
relax rules on things like basketball hoops in
driveways temporarily.
Being flexible on certain rules will help build a sense of
community and reduce stress as people adjust to a "new
normal." Look for creative approaches to resolve concerns
before they become a dispute or media story, including
dialogue with the residents. Remember, relaxing rules during an
unprecedented emergency doesn't necessarily preclude
future enforcement.
Should assessments be suspended?
Boards shouldn't suspend assessment collections, as they
still have fixed costs for insurance, water, and electricity.
It's essential to keep an eye on cash flow and deal with
delinquencies on a case-by-case basis.
Now isn't a time to panic—there are various resources and
solutions available. For example, boards can use reserves and
lines of credit to help smooth out issues during the economic
disruption. Payment plans are also an option, but if deployed
too soon, they may not effectively protect the ability of the
association to collect required funds. Lastly, if an association
has an annual assessment, consider extending it to quarterly
payments if permitted.
When focusing on ensuring the financial health of the
association, board members shouldn't forget the human
element. Balance is the operative word.
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