National Trends In Budget Management

The Community Associations Institute issued a survey to determine the effect the national mortgage foreclosure crisis was having on communities and what steps associations are taking to deal with their budgetary shortfalls.

• 38.2% postponed major capital improvements;
• 36.4% increased assessments;
• 35.4% deferred maintenance of common elements;
• 35.2% reduced landscaping expenditures;
• 31% reduced contributions to their reserve accounts;
• 21.7% borrowed from their reserve accounts;
• 17.6% reduced other professional costs and services;
• 15.3% levied special assessments;
• 11.2% allowed residents to perform minor tasks such as landscaping;
• 8% reduced management fees and costs;
• 6.7% borrowed from banks and other lenders;
• 5.3% laid off staff;
• 22.7% took none of the above actions.

Respondents were from the following regions: 31.6%-South; 20.3%-West Coast; 11.2%-Northeast; 10.7%-Midwest; 10.4%-Southwest; 10.3%-Mid-Atlantic; and 5.5% Rocky Mountain region.

SOURCE: Ramsey, Mike: “Riding out the Storm” Common Ground (November December 2008)

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