Community Associations, as nonprofits, are included in the categories of businesses able to receive Disaster Loan Assistance. At the time of this writing, this includes a $10,000 advance to help keep your business running smoothly.  And of course, registered nonprofits are businesses. With the market tightening up, and unemployment skyrocketing, it is safe to assume that community associations are going to feel the ripple effect, as HOA dues start to go unpaid by impacted property owners.

Start the loan process, and the process of getting the advance capital here, and the last option for the first question is the option you would select for your HOA.

For associations that have employees on payroll (as well as other businesses, such as management firms or even onsite restaurants and pro shops), there is an additional program called the Paycheck Protection Program Loan that can also help business owners. The idea is that this plan will combine loans as well as some relief for expenses including employee payroll and rent, although the details are still being outlined by the SBA. Check with your local SBA lender for more details on how this plan can help your business through these trying times.

Compounding the economic drain on landlords renting units (and accordingly the associations where these units are located) are the lack of evictions.  Many counties are having a “stay of evictions” meaning that they will not be kicking people out of homes during this (undetermined, and ever-changing) period of time. It is reasonable to assume that a renter unable to pay, and unable to be evicted poses a very real and persistent problem for the owners and the community associations.

If an investor unit owner falls victim to these circumstances, assuming they incorporated their business properly, they may be able to get relief from the same SBA programs mentioned above. If not, they may need legal assistance if their funds run short (after all, it’s expensive to keep paying a mortgage, insurance, and HOA dues when you are stuck with a freeloading tenant for the foreseeable future).

At Lubliner Law, we are help you mitigate your risk and protect your assets. When it comes to evaluating what is best for your business law needs (even for small businesses) , let us be your resource.

Or call us at 561-207-2018!