CAI-NJ April 2021

COVID-19 – A YEAR LATER By Edward Guttenplan, CPA, CGMA, MBA and Donna Peskin, CPA, WilkinGuttenplan

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O ur communities have all been impacted by COVID‑19 . We have seen a multitude of impacts on all levels: the world, our society, our commu- nities, community association life, financial consequence and personal/social impacts. We have seen so much that it is difficult to list all. As a result, we have had to rapidly adjust to these variables that have impact- ed each of us in our daily lives. Our focus in this article is on the financial consequence or repercussion from the impact of COVID‑19 to our communities. We have seen loss of the use of amenities, loss of amenity revenue, loss of sources of income (such as retail space rentals) and in some cases an increase in delinquencies. In New York, for example, buildings have been significantly impacted by the restrictions of COVID-19 on the first-floor retail spaces. On the other hand, your association may have actually seen a decrease in related expenses or in some cases increases in other costs such as supplies, signage and PPE. The reality is that the pandemic has resulted in operating surpluses and in some cases operating deficits in many communities.

“thinking outside the box,” what are some possible ways a community might respond to the savings to possibly help their communities or address the income shortfalls? On a social level, residents lack social connections. In senior communities, residents may not be able to get out

to obtain items they may need; or, you may have community members who do not have internet access for scheduling vaccine appointments. Could we create a buddy system between members who can get and/or have internet access to assist those who need assistance and/or internet

“Any possible solution to address societal impacts requires funds.”

access? Could we invest in technology to help alleviate the social isolation? We can’t gather in the clubhouse, but can we create opportunities to meet virtually? Are there other personal impacts that we might address? Any possible solution to address societal impacts requires funds. If your community has a surplus, why not utilize these savings? Some technological advances might also address impacts to the management of the communities. For exam- ple, having more advanced communication systems allows CONT I NU E S ON PAGE 18

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