Budget Considerations
The ongoing demands of the pandemic will have
budget implications. As boards work to prepare 2021
budgets, the added cost of cleaning, PPE, and staff
time should be factored in to 2021 budgets. Using cost
data for expenses from 2020 year-to-date can be a
good benchmark when projecting costs for the 2021
budget year. Boards also need to review their current
reserve study to identify any planned projects that were
not completed due to the pandemic. They may need
to adjust funds, project timelines, and more. If your
board does not have a current assessment of your HOA
reserve fund, we encourage you to contact Building
Reserves for a reserve study and onsite inspection. Visit
www.buildingreserves.com for more information.
Often forgotten during the pandemic is the historic
economic impacts that have accompanied it. Both the
United States and Canada are experiencing significant
economic challenges as a result of the pandemic. The
longer the pandemic continues, the more likely the
economic impacts will be felt in your community. While
there was no historical framework to help guide boards
through the pandemic, the Great Recession of 2007-
2008 provides boards with insights into navigating
current financial uncertainty. See our webinar on
financial lessons learned from the Great Recession
here. Boards should reference financial reports from
this period to understand the potential impacts of the
economy on association finances.
