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Association Reserves New eBook & online tool help HOAs safely tap their Reserve Fund in times of financial shortfall

Association Reserves New eBook & online tool help HOAs safely tap their Reserve Fund in times of financial shortfall

To survive temporary disruptions to cash flow, planned communities may want to consider their Reserve Fund as a resource.

WESTLAKE VILLAGE, Calif., Oct. 14, 2020 /PRNewswire/ — As the Coronavirus pandemic drives unemployment to a record high, Association-governed communities are bracing for higher than normal delinquency rates among their homeowners. Volunteer Boards across the country are all asking the same question: “Can we use our Reserve Account to cover an Operating Fund shortfall?” This includes Boards of Condominiums (Condos), Common Interest Developments (CIDs), Cooperatives (Co-ops), Community Associations (CAs), Homeowner Associations (HOAs), Property Owner Associations (POAs), Planned Unit Developments (PUDs), Townhome Associations (Townhouses), and Vacation Ownership Resorts (VORs).  Robert Nordlund, PE, RS, and Founder/CEO of Association Reserves, Inc. advises that relying on Reserves to help manage a temporary cash flow disruption must be done with great care. His eBook & online tool help Boards facing operating fund shortfalls make wise decisions about Reserves.

Boards across the U.S. are all asking the same question: “Can we use our Reserve Account to cover an Operating Fund shortfall?”

Reserves to the Rescue? eBook

Nordlund outlines four steps to take before an association-governed community even considers tapping into Reserves to fund operations:

  1. Assemble Financial Information (i.e., Bank Balances, Delinquencies)

  2. Review/Adjust the Operating Budget

  3. Maximize Communications & Collections

  4. Confer with legal counsel regarding Governing Document or state-level restrictions

If the Board elects to tap Reserves, that decision will come under intense scrutiny. It will be vitally important that a proper process of decision-making be both followed and documented.

uPlanIt- online Reserve Funding tool

uPlanIt gives Boards a way to forecast various “what-if” scenarios related to their most recent Reserve Study, such as:

  • What if we re-prioritized our Reserve expenses?

  • What if we temporarily reduced Reserve contributions?

  • What if we borrowed money from Reserves?

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How to Create Financial Stability in Shaky Times

How to Create Financial Stability in Shaky Times

In a year that has thrown a pandemic, natural disasters and economic calamity at us while we lurch closer to a presidential election, stability can feel elusive. No matter how well-laid your plans, some new crisis might be lurking around the corner, waiting to upend your life.

While it’s never been more clear how much is out of our control, you can still take steps to improve your financial stability. And it’s not just about cash flow.

Find your idea of stability

Financial stability is both a state of money and a state of mind, says Ed Coambs, a certified financial planner and certified financial therapist near Charlotte, North Carolina.

On the money side, stability is straightforward. “You have a budget, you know where your money is going, and you know how much you should be saving to meet your bigger goals,” Coambs says.

“What’s a little harder is more the state of mind,” Coambs says. This financial peace of mind is subjective and looks different from one person to the next.

Do some self-reflection to pin down what stability means for you. Maybe you don’t want to feel anxious when you check your bank balance, or you hope to save enough for retirement so you won’t have to worry about the future. Whatever your focus, feeling stable means you won’t have to constantly worry about money.

If you find yourself overwhelmed because the pandemic has destabilized your finances, follow the advice of Tara Tussing Unverzagt, a Torrance, California, certified financial planner and financial therapist. She advises people to think through the worst that could happen rather than avoiding the topic out of fear.

“This often helps people open up a way to reframe the situation from, ‘There’s no way out of this,’ to ‘I have some choices — this

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Tommy Tuberville’s Financial Fumbles – The New York Times

Tommy Tuberville’s Financial Fumbles – The New York Times

Tommy Tuberville, the Republican candidate for Senate in Alabama, is running in large measure on his experience in college football’s Southeastern Conference, known as the S.E.C., where he coached Auburn University.

But he has had experience with another S.E.C., the Securities and Exchange Commission, and other financial regulators.

A review by The New York Times found that Mr. Tuberville, who is leading Senator Doug Jones in the polls, has a history of involvement with at least three people who were later convicted of financial fraud in what were described as Ponzi schemes. Mr. Tuberville was largely seen as a victim and was never charged with a crime.

In two episodes, Mr. Tuberville lost millions of dollars. A third was more minor, when Mr. Tuberville and his wife, Suzanne, bought a home through a company created by a lawyer who was later convicted of running a real estate-related Ponzi scheme.

The Times review included a small charitable foundation created by Mr. Tuberville, finding that its tax records indicated that less than a third of its proceeds went to the veterans’ causes it was set up to advance. The foundation also had bookkeeping issues.

The review raised questions about Mr. Tuberville’s judgment and financial acumen. While he has said on the campaign trail that he hoped to serve on the “banking finance” committee — the Senate has separate, and prestigious, banking and finance committees — he has at times undercut his own qualifications. In regards to an ill-fated hedge fund venture, he once told a reporter, “I’m not smart enough to understand all the numbers.”

In a statement, Paul Shashy, Mr. Tuberville’s campaign manager, largely deflected questions about Mr. Tuberville’s financial dealings. “Doug Jones, Chuck Schumer, and other liberal, Swamp Democrats are spreading lies in an attempt to smear Coach Tuberville’s career,

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Staggers Rail Act deregulation has enabled rail industry to thrive even during times of national crisis: Analysis

Staggers Rail Act deregulation has enabled rail industry to thrive even during times of national crisis: Analysis

October 14, 2020, marks the 40th anniversary of the enactment of the Staggers Rail Act signed by former President Jimmy Carter. The bipartisan legislation primarily deregulated the freight rail sector, which was on the brink of collapse in the 1970s.



a group of people sitting at a train station


© Provided by Washington Examiner


The rail industry’s success after 40 years of rail deregulation provides “an important case study on matters related to competition, markets, rate regulation and capitalism writ large,” the Association of American Railroads argues.

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The Staggers Rail Act eliminated many of the regulations still in place since 1887, when Congress passed the Interstate Commerce Act. The act established the Interstate Commerce Commission (ICC) to regulate monopolies controlling the railroads.

By the 1970s, the regulations had not changed. Combined with competition from other transportation sectors, major railroads were facing bankruptcy, the industry was facing ruin and rail infrastructure was so deficient that cars were falling off the tracks.

Deregulation enabled the rail industry to take a customer-focused and market-based approach. Since then, freight railroads have invested more than $710 billion of their own dollars back into the national rail network.

Since 1980, rail traffic has doubled but, because of deregulation, rail rates are down by more than 40 percent when adjusted for inflation. Customers can ship double the amount of goods for roughly the same price they could 40 years ago. And because of technological advancement, increased volume of heavy freight has been carried on rail lines instead of on congested or failing public roads making transportation safer.

“The freight rail industry is one of the most cost-effective and efficient transportation networks in the world,” the Association of American Railroads (AAR) argues. “Fueled by billions of dollars in annual private investment – $25 billion on average – railroads maintain and modernize the nation’s nearly

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Premiums Cost 10 Times More)

Premiums Cost 10 Times More)

Six months into the coronavirus pandemic, many Hollywood companies still can’t head back into production on film and TV projects because of one major roadblock: Insurers have made no moves to incorporate pandemic coverage into policies, leaving big studios to self-insure and smaller production companies to seek pricey alternatives — or gamble on shooting without any coverage at all. Productions that bought policies before March are largely safe, as multiple insiders tell TheWrap that most policies procured before the pandemic shutdown did not have COVID-19 or infectious disease exclusions, and cast insurance and civil authority policies cover expenses incurred due to the coronavirus. However, any policy written since March now has a “platter of exclusions” as insurers seek to mitigate potential losses, according to Brian Kingman, managing director at Gallagher Entertainment, who helps find coverage for Hollywood’s stars. Plus, no major insurance carriers will offer COVID-related coverage moving forward. “In the past, most, if not all, specialty insurance products related to film, TV and live events did not have written COVID-19 exclusions, so many of the productions that are being rebooted should have some level of coverage on a moving forward basis, yet the unfortunate news for new productions or…

Read original story Why Insurance Is Still a Roadblock to Restarting Production (Hint: Premiums Cost 10 Times More) At TheWrap

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