Trestle Provides Guidance Regarding Delinquency Monitoring Under Proclamation 20-51
Proclamation 20-51 was issued on April 17, 2020 and later amended on July 31, 2020. The Proclamation limits community associations’ ability to process delinquencies during the COVID-19 pandemic. While it has continued to be extended monthly, the most recent extension indicates that it will be effective until the Washington State COVID-19 State of Emergency is terminated or rescinded.
As the Proclamation has remained in effect for nine months, Trestle wanted to ensure that Board Members understand what actions they are taking and the ways in which the restrictions will affect communities. Trestle is continuing to issue past due statements to owners with a balance owing. While the community cannot assess late fees under the Proclamation, it can request payment. All past due accounts appear on the Board financial packet for review and monitoring.
Strategic Financial Planning for Associations
As the COVID-19 pandemic continues, delinquencies may increase. Board Members are strongly encouraged to review the financials each month to monitor the status of their funds. Closely monitoring expenses now and avoiding any extraneous unbudgeted projects will help protect Associations from long term funding shortfalls.
Associations with increasing delinquencies may consider delaying non-essential reserve projects in an effort to retain the funds. In the event that delinquencies increase and there are limited operating funds available, an Association may be able to take a loan from its reserve account to cover critical expenses, such as insurance and utilities.
Trestle is here to help. Board Members should consult their Community Association Manager for further guidance.