Why Is COVID-19 Making Association Collections Impossible?
Why is COVID-19 making association collections impossible. With more than 40 million households under their watchful eye, the homeowners association has a lot of influence.
The HOA collects association collections paid by the homeowners as fees for the operation of the division.
Unfortunately, since the COVID pandemic, the association has faced colossal opposition when trying to enact some of its policies.
Let’s see just how the COVID-19 pandemic has made associations collections a next-to-impossible task.
The effects of COVID-19 are increasingly visible as the pandemic spirals out of control throughout the world.
These impacts have led to drastic measures. For example, businesses have shut down, learning institutions have resulted in online studying, and the world has shut down.
After COVID-19 led to the virtual halt of most state and federal organizations, the homeowners association was one of the heavily affected associations.
What Does the HOA Do?
How have COVID-19 affected operations at the homeowners association?
Well, to answer this question, you first need to understand what the HOA does.
Here are some of the top duties and responsibilities that are given to the HOA.
- HOA helps maintain several community amenities – these include tennis courts, massage rooms, pools, fitness rooms, spas, and more.
- They also maintain external structures – such as the parking pavement and landscaping
- HOA facilitates and manages the quality of life features – including pest control and recycling
- Sometimes, the HOA also pays security officers and supply maintenance workers
- They also facilitate social groups which foster a community and the available common recreational resources
How Does the HOA Make Money?
Most of the HOA’s budget is spent on operations.
But, how exactly does the HOA make money? One way which you are likely familiar with is the mandatory Home Owners Association fees.
These fees are remitted every month and account for a large chunk of HOA’s running cost.
However, collections made from the association fees are not enough for the associations to run on. And that’s where their alternative source of income for the HOA comes to play, Sheriff’s sales.
What are the Sheriff’s sales? These are sort of public auctions mandated by the judge after you’re unable to pay a judgment.
In a case where the HOA has to involve the Sheriff’s sales, it likely means the current homeowner is not paying the fees.
After Sheriff’s sales, HOAs can recoup their running cost and fund the aforementioned duties. The question then is, how has the COVID-19 affected the HOA?
How has COVID-19 affected association collections?
One of the effects of COVID-19, as seen above, was the closure of companies and businesses.
After this, most people cleared out their savings in a short while and could no longer afford to pay basic amenities such as rent or even the HOA fees.
Usually, when homeowners cannot pay their fees, the result is the Sheriff’s sale.
However, during these tough times, association collection attorneys and associations cannot fulfill their collections duties.
This is due to Executive Order No.106 that stopped all evictions resulting from foreclosures.
Simply put, this means until there is a vaccine for the virus, the Home Owners Association will continue bleeding money as more owners are unable to pay.
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