HOAleader.com - Tip of the Week - May 15, 2020
Published: Fri, 05/15/20
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COVID-19: Experts Say Your Condo/HOA May Qualify for Forgivable Loan
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In this tip, we suggest you act quickly if our advice applies to you.
There's been a ton of confusion over whether community associations qualify for Paycheck Protection Plan loans under the CARES Act enacted to provide financial relief due to job and business losses from the pandemic.
Community associations have applied and are getting approved for PPP loans, though at least one is getting raked over the coals in the media for its success. The Kiawah Island Community Association reportedly received a $1 million federal loan even though it reportedly had $13.6 million in the bank at the end of 2019 along with access to a $2.5 million, low-interest line of credit, according to Fitsnews.
The Paycheck Protection Program, which was created through the passage of the CARES Act, is providing small businesses with the resources they need to maintain their payroll, hire back employees who may have been laid off, and cover applicable overhead, according to the U.S. Treasury Department's website. PPP loans are funded through the U.S. Small Business Association.
In the early days after the CARES Act was passed, the conventional wisdom was that community associations didn't qualify for PPP loans.
"There was some question and there's a lot of controversy over the Paycheck Protection Program and whether community associations actually qualify for the program," reported Lisa Magill, of counsel at Kaye, Bender & Rembaum in Pompano Beach, Fla., at HOAleader.com's free April 23 webinar, COVID-19 and Your HOA Follow-Up: A New Update for HOA and Condo Boards on How to Navigate and Prepare for Operational Challenges in Your Community from Coronavirus.
"This is the program that allows forgiveness if you use the funds for employee salaries and other authorized means," she explained.
That turned out not to be the case. Read more in our new article: https://www.hoaleader.com/members/4116.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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COVID-19: What Condo/HOA Boards Should Know About Virtual Meetings
It's only a little bit of an overstatement to say that the COVID-19 pandemic has forced the whole world to shift to online meetings. Your board is likely no different. Here, our experts explain what you should know now that your abrupt adoption of virtual meetings is underway, along with general dos and don'ts.
Click here to read full article:
https://www.hoaleader.com/members/COVID19-What-CondoHOA-Boards-Should-Know-About-Virtual-Meetings.cfm
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How to Make Your Architectural Review Committee More Fair and Effective
Join us for an in-depth webinar on June 11, when two community association lawyers will help you understand how you can strengthen your ARC to ensure fewer headaches, happier owners, and a fairer, more consistent outcome.
Click here for more info:
https://www.hoaleader.com/products/effective-architectural-review-committee-a.cfm
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COVID-19: Advice on the Challenging Financial Questions Condo/HOA Boards are Facing
We offer suggestions on the questions many condo and HOA boards are asking when it comes to financial issues they're facing due to the pandemic: Can they waive dues for suddenly unemployed homeowners? Use reserves to help such homeowners? Take measures to ease collections?
Click here to read full article:
https://www.hoaleader.com/members/COVID19-How-CondosHOAs-are-Handling-Dues-Collections.cfm
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COVID-19: How to Handle Condo/HOA residents Who Become Ill
Let's hope you never have to face the issues in this article. Let's also hope you're prepared in the sad event that you do. Here's what to know about how your association can and should respond when you learn that a resident tests positive for COVID-19.
Click here to read full article:
https://www.hoaleader.com/members/COVID19-How-Handle-CondoHOA-residents-Who-Become-Ill.cfm
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COVID-19: When to Enforce Condo/HOA Rules, and When It's Not Cool to Enforce
In this tip, we offer advice on whether you should just let owners run amok and stop enforcing your rules. (Short answer: No, but…) The issue arises as a result of news reports of health care workers and first responders asking their HOA if they can park an RV in their driveway--against the rules--as a place to stay to avoid risking transmission of COVID-19 to family members living inside the house.
Click here to read full article:
https://www.hoaleader.com/members/COVID19-Should-Your-CondoHOA-Relax-Any-Rules-Which-Ones.cfm
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