How Will Covid-19 Affect your HOA Budget?

CMA and Craig Ranch POA Forge Partnership
July 9, 2020
Protecting Your HOA During the Pandemic
August 5, 2020
Show all

How Will Covid-19 Affect your HOA Budget?

Budgets for 2021 are developed in the fall of 2020 for most of our 250+ associations. Boards must approve the final budget by mid-October. Whether your HOA is a CMA client or not, it is now time to scrutinize and prepare your 2021 budget.

Covid has stricken Texas hard, and your HOA budget may have felt the hit. We recently asked several of our managers, “What impact did unexpected pandemic expenses have on association budgets?  What costs might your community need to budget for in 2021?”  They mentioned a number of expenses they’ve seen in their communities or will plan for next year. Some of these items may have been covered as emergency expenses in 2020; however, it’s prudent to anticipate that some expenses of Covid may carry over for longer term costs and improvements.

Does your 2021 association budget need to address:

  • New signage for health and safety, i.e.  social distancing reminders in parks and playgrounds, pool rules and hours, etc.
  • Increased monitor hours to count heads at the pool or other amenities
  • Increased porter service for cleaning
  • Increased janitorial supplies

Modifications and upgrades to facilities:

  • Hands- free toilets, faucets, paper towel dispensers
  • Foot pulls for doors
  • Installation of plexiglass barriers
  • Permanent hand cleaning stations
  • Ground markings expense

Additional services:

  • Cost for a subscription package for various virtual meeting providers
  • Cost for an amenities reservation system (to reserve pool time, etc)
  • E-voting service to conduct annual meeting elections and other surveys of owners
  • Increased legal fees, whether to draft revised pool waiver language or to respond to issues and demands from owners
  • Additional communication costs, for mailouts

To read more about HOA budgets and CMA’s procedures, see the article, What’s Missing from Your Association’s Budget?   If you would like to learn more about specific budgeting processes, special services such as e-voting and how they may help to better align your budgeting with actual expenses, give CMA a call!

Karyn Bradley

CMA Controller

If you found this article helpful, you may also find other topics relevant to your HOA on this blog at Community. Well-Served.

mm
CMA Management
37 Years of Community. Well Served. (www.cmamanagement.com) Headquartered in Plano, Texas, CMA has three regional offices and numerous onsite locations providing contract management services for more than 250 residential and commercial communities, and more than 9,700 individual units. Residential Communities •Town Home Communities •Master Planned Communities •Active Adult Communities •Commercial Associations