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CAI Urges Homeowners Associations to Stop Foreclosures During Covid-19 Pandemic

3/31/2020  -   ,  



March 31, 2020 – Falls Church, VA – Community Associations Institute (CAI), the leading international authority setting standards and best practices for people governing and managing community associations, is urging boards of directors to suspend foreclosure activity through June 1.

In response to the COVID-19 pandemic, the CAI Board of Trustees has developed the Statement of Foreclosure Moratorium, a set of principles for community associations — commonly referred to as condominium communities, homeowners associations, and housing cooperatives — to adopt when addressing homeowners who can't pay their assessments during this time.

  1. If an owner is unable to pay assessments on time, the owner should notify their community association to work out a payment plan. Homeowners with a financial hardship should be encouraged to apply for government assistance, if available.
  2. Community associations should adopt a moratorium on foreclosures for 60 days (or until at least June 1, 2020).
  3. Community associations should waive late fees and penalties for owners who face temporary financial hardships due to COVID-19.
  4. Community associations should amend, temporarily relax, or follow existing non-foreclosure collection policies that are fair and applied equally to all members.
  5. Community associations should continue to record liens to protect their interests.
  6. Community associations should emphasize the importance of owners paying their assessments on time, if possible.

With more than 350,000 community associations in the U.S., the collection of assessments is a very serious and important responsibility of a governing board. Failing to collect assessments may impair a community association's ability to pays its bills, provide essential services, acquire financing for continued operations, and may impact the ability of a potential purchaser to obtain a mortgage.

“Today, we're witnessing condominiums and homeowners associations closing common areas— including clubhouses, gyms, playgrounds, pools, and more, to comply with government regulations," says Dawn M. Bauman, CAE, CAI's senior vice president of government and public affairs. “Some residents who may not be familiar with the financial model of the community association may compare the association's exercise facility with a gym membership and wonder why they need to continue to pay if it isn't open or available for use. Despite common area closures, these facilities still need to be cleaned and maintained, and they are still owned by the association."

CAI has published a brief explanation of the Financial Model of a Community Association to guide homeowners and renters living in a community association.

As people shelter in place and stay at home, it is more important than ever for communities to be a place where residents feel safe and comfortable. CAI is proud to provide resources to support community association board leaders, managers, business partners, and residents as they navigate these challenging and changing times. Community associations can find up-to-date resources on COVID-19, including sample forms, documents, and answers to frequently asked questions, at

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 and follow us on Twitter and Facebook @CAISocial.

Phone: 703-970-9235