For Immediate Release Contact: Amy Hawkes Repke, email@example.com, (703) 970-9239
CONDOMINIUM AND HOMEOWNERS ASSOCIATIONS EXPECT RISE IN ASSESSMENT DELINQUENCIES AS A RESULT OF COVID-19 New report published by Community Associations Institute forecasts financial impact of pandemic.
May 6, 2020 – Falls Church, VA – The vast majority of community association board members express confidence in their current budget, but half expect their assessment delinquencies to increase going forward, according to a survey conducted by Community Associations Institute (CAI). CAI fielded the “Community Associations & COVID-19 Impact" survey of more than 600 community association volunteers and professional managers around the globe to gauge the early financial effect of the pandemic on homeowners associations, condominium communities, and housing cooperatives.
According to the report, nearly 40% of association board members are “confident" their community's budget will be fully funded as adopted through the end of the current budget year, and another 36% are “very confident."
One-third of respondents reported reducing expenses out of concern for future revenue, and nearly 50% expect assessment delinquencies will increase in 2020.
Additionally, more than 90% of community association homeowners are current paying their assessments—roughly the same percentage as late February, according to the survey. However, communities are seeing an increase in homeowner requests for assessment payment plans or forbearance as a result of the pandemic; roughly 20% of respondents reported that they've noticed an uptick.
Community associations acted quickly and sensibly to protect and support residents when COVID-19 began to spread across the U.S., establishing remote meetings, closing common areas and amenities, sharing information, and connecting neighbors who need help.
Community association managers and board members responding to a separate CAI poll in late March said they took the following steps (among others):
More difficult decisions lie ahead, particularly regarding budgets and assessments.
“Board members, managers, and business partners have been working tirelessly to support their communities through this crisis. They've had to make prudent decisions to a challenge they haven't faced before," says Thomas M. Skiba, CAE, CAI's chief executive officer. “Despite the uncertainty over the short- and long-term economic implications from the pandemic, we know they'll continue to lead their communities with health and safety, compassion, flexibility, understanding, and business continuity in mind. CAI will be there to help provide resources and guidance through it all."
CAI also evaluated the short-term economic impacts of the pandemic on community association managers and management companies in a separate survey conducted in late April.
Of the more than 400 managers responding, 91% reported no change in their employment. And the vast majority (92%) of nearly 130 management company CEOs and senior executives reported that they have not yet had to furlough or lay off managers on their staff, but nearly 31% said they had been forced to reduce staffing levels for other employees in their company.
>>Access the complete “Community Associations & COVID-19 Impact" survey and additional research on economic indicators for community associations.
About Community Associations Institute Since 1973, Community Associations Institute (CAI) has been the leading provider of resources and information for homeowners, volunteer board leaders, professional managers, and business professionals in the nearly 350,000 homeowners associations, condominiums, and housing cooperatives in the United States and millions of communities worldwide. With nearly 45,000 members, CAI works in partnership with 36 legislative action committees and 64 affiliated chapters within the U.S., Canada, South Africa, and the United Arab Emirates as well as with housing leaders in several other countries, including Australia, Spain, Saudi Arabia, and the United Kingdom. A global nonprofit 501(c)(6) organization, CAI is the foremost authority in community association management, governance, education, and advocacy. Our mission is to inspire professionalism, effective leadership, and responsible citizenship—ideals reflected in community associations that are preferred places to call home. Visit us at www.caionline.org and follow us on Twitter and Facebook @CAISocial.
MEDIA CONTACT: Blaine TobinPhone: 703-970-9235