Landings Association Approved for Paycheck Protection Program - Background and What’s Next
On April 3, The Landings Association applied for the Paycheck Protection Program (PPP). Before applying, the Association sought guidance from our accounting firm, which confirmed eligibility and recommended application due to economic uncertainty.
At the time of application, the Association already was seeing a tremendous impact on collections of 2020 Assessments. There were 127 more accounts delinquent in paying their annual Assessment than in the previous year (an 82% increase). These Assessments are critical to the health of the Association, as they account for 64% of our revenue, which is necessary to support and maintain our employees and service levels.
Also at that time, the Marinas were closed, and there was much uncertainty surrounding when they could be reopened, and what would happen with the staff.
That made it a prudent business decision to apply for the Paycheck Protection Program, especially to maintain staffing levels rather than implementing layoffs.
The Association received the requested funds late this Wednesday, April 29, in the amount of $792,888.
Since applying for the funds, some things have improved for the better. The Marinas have reopened, albeit in a more limited capacity and with reduced sales.
However, Assessment delinquencies remain higher than last year, and collectability this year is uncertain. The Association is also experiencing decreased commercial decal sales due to business disruptions.
Other costs have been incurred, such as temporarily increased pay for those frontline staff who are at a higher risk of exposure as they must come in contact with customers, such as Security and Public Works. The new federal regulations also require paying employees for an extra 80 hours of sick leave in certain circumstances, and TLA has had a number of employees impacted.
The Association is in the process of quantifying increased expenses and decreased revenues due to the COVID-19 pandemic. The goal is to be made whole on such costs to our community and maintain staffing rather than having to lay off employees, which is what the PPP is designed to handle.
There is a lot of uncertainty as to how long we will be dealing with the effects of this pandemic. It is the Association’s responsibility to ensure the financial stability of the community, and this program is one of the ways afforded to us to do so. It ensures the health of your Association, community, and TLA employees.
Detailed analysis is ongoing to determine the best way to move forward. Once the analysis is complete, the details will be shared with the community, and we hope to have that completed by the end of next week.
Please stay tuned for future communications on this important issue.
This article was originally published by The Landings Association on their website. Visit landings.org to read the original article. https://landings.org/news/2020/05/01/landings-association-approved-paycheck-protection-program-background-and-what%E2%80%99s-next