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How to Plan HOA Projects: 7 Essential Steps When Planning Capital Improvement Projects for your HOA

Writer's picture: knkmanagementserviknkmanagementservi

Updated: May 2, 2023

These seven steps will help your HOA board prioritize and plan important improvement projects for your community.


Not sure you have the time (or the skills) to tackle big HOA projects on your own? K&K Property Management offers capital improvement project consulting services to guide volunteer HOA boards through the project planning process. We can also assist with budgeting and scheduling and supervising vendors. And as a licensed general contractor, we can pull the permits and line up the subcontractors necessary to get the job done right. Contact us now for more info.

How to Plan HOA Projects

With the arrival of spring and summer, homeowners' associations (HOAs) often start planning important capital improvement projects. Whether it’s improving landscaping, renovating the community pool, or fixing up common areas, it’s essential to plan ahead to ensure that the projects are completed efficiently and within the allocated budget.


How to Plan HOA Projects


While the only real guarantee is that every project will hit a snag somewhere, there are some secrets to learning how to plan successful HOA projects. Follow these seven essential steps when planning spring and summer HOA projects to ensure that your projects are as hitch-less as possible.


Step #1 - Assess your needs


The first step in planning any HOA project is to assess your needs. Consider what areas of your community require attention and what improvements would add value to the property. Talk to members of the homeowners association and get their input on what they would like to see.


Hot Tip: Use your HOA's reserve study as a guide when scheduling big projects, but remember that it's just a best guess. If the reserve study says it's time to replace the pool boiler, but the boiler is still in great shape, push the expense to the following year with an inflationary increase. Stay tuned to the K&K blog for future resources to make working with your reserve study easy.


Step #2 - Prioritize projects


Once you have a list of potential projects, prioritize them based on their importance and urgency. Focus on projects that are essential for safety or are likely to save money in the long run, such as repairs to the roof or HVAC system. Projects that are less critical can be tackled later or deferred to a future season.


On the flip side, remember that deferring maintenance for too long can end up being more costly down the road - both in terms of the repair itself, and in the form of a hit to your HOA's property values. A good management company will keep track of what projects are being done each year and what ones aren't (and why) so they can advise the HOA board appropriately.


Developing a budget is a crucial step when planning HOA projects

Step #3 - Develop a budget


Develop a budget for each project, taking into account the cost of materials, labor, and any necessary permits or inspections. Be sure to include a contingency fund to cover unexpected expenses - 10% of the estimated total is a good bet. Consider hiring a professional estimator or contractor to help you develop an accurate budget.


Hot tip: An experienced property management company can help your HOA board estimate costs on big projects. If your HOA self manages, consider retaining a management company to consult on major capital improvement and reserve projects.


Step #4 - Set a timeline


Set a realistic timeline for each project, taking into account any seasonal constraints. For example, if you’re planning to repaint the exterior of a building, you’ll need to consider the weather conditions during the painting season. Allow enough time for planning, procurement, and execution of each project - and always plan for delays.


Step #5 - Hire contractors


If the project requires specialized skills, it's essential to hire a qualified contractor. Obtain several quotes from licensed and insured contractors and check their references, and verify licensing and insurance. Choose a contractor who has experience with similar projects and a proven track record of quality workmanship.


Hot tip: In most cases, it's best practice to get three bids before awarding a contract. However, there is also value in an established relationship. If you've bid out the same contract or project in the past and the HOA board already knows who they want to use and why, that's usually okay - just make sure to thoroughly document the decision through meeting minutes and a formal board vote.


Step #6 - Communicate with the community


Keep the community informed about the progress of the projects. Send regular updates via email or text, and provide a timeline for completion. Encourage feedback and suggestions from the community, and be open to making adjustments based on their input.


If your project is especially large or has the potential to create negative kickback from residents, consider holding an open community meeting at the beginning of the project. This will provide an open forum to solicit feedback and ideas and gain an understanding of the owners' priorities. Stay tuned to the K&K blog for an upcoming post on an HOA board's toolkit for communicating with owners.


Step #7 - Follow up


Once the projects are complete, follow up with the community to ensure that the work was done to their satisfaction. If any issues arise, address them promptly and communicate with the community about how they will be resolved.


Need some extra help? #makeitaknkproblem


In summary, planning capital improvement and reserve HOA projects requires careful consideration of the community's needs, prioritizing projects, developing a budget, setting a timeline, hiring qualified contractors, communicating with the community, and following up after completion. By taking these steps, you can ensure that your projects are completed efficiently and effectively, and your community remains a desirable place to live.


If you're struggling to manage your HOA's reserve or capital improvement projects and budget, K&K can help. We offer project consulting services for HOAs to ensure that your projects are completed on time, done well, and on budget. Contact us today to find out how we can help.

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