Stop Playing Project Roulette: How to Prioritize Capital Improvements for Your HOA
Spring is Here—Is Your HOA Ready for Project Season?
Spring isn’t just about warmer weather—it’s project planning season for HOAs. If your board and management company haven’t set priorities for the year yet, it’s time to stop playing project roulette and start making smart, strategic decisions about where your HOA’s money and resources should go.
Your property manager should play an integral role in the priority-setting and project planning process - and if they’re not, it might be time to look elsewhere. If your HOA is self-managed, consider hiring a professional consultant or project manager for big, complicated projects.
With limited funds, competing needs, and long-term capital planning to consider, prioritizing projects the right way is key to keeping your community in great shape without breaking the bank.
Step 1: Take Stock of Your HOA’s Capital Needs
Before you start throwing money at projects, get a clear picture of what actually needs attention. This means reviewing:
✔ Reserve Study Reports – What major repairs or replacements are due in the next 1-5 years?
✔ Maintenance Logs – Are there ongoing issues (like constant plumbing repairs or roof leaks) that indicate a bigger problem?
✔ Owner Feedback & Complaints – What are homeowners most concerned about?
✔ Safety & Liability Issues – Are there hazards that could lead to major liability for the HOA if not addressed?
Your goal here is data-driven decision-making — not just reacting to whoever complains the loudest.
Step 2: Categorize Projects into Priority Levels
Once you’ve got your list, divide projects into three categories:
🚨 High-Priority (Must-Do) Projects
These are urgent, non-negotiable projects that protect the community’s safety, structural integrity, or financial health.
Examples:
Fire suppression system repairs (required by law)
Leaking roofs that are causing interior damage
Broken elevators in multi-story buildings
Major trip hazards in walkways or parking areas
These should be scheduled ASAP—delaying them could cost your HOA more in long-term damage, legal issues, or emergency repairs.
⚡ Medium-Priority (Should-Do) Projects
These projects increase property value, improve curb appeal, or prevent long-term problems, but they aren’t emergencies.
Examples:
Repainting exterior buildings before fading turns into damage
Landscaping upgrades for better curb appeal
Pool resurfacing before cracks lead to expensive leaks
Upgrading lighting for energy efficiency
If you have the funds, tackle these projects after handling high-priority items. If money is tight, start budgeting for them now.
💡 Low-Priority (Nice-to-Have) Projects
These are cosmetic or convenience-based upgrades that homeowners might love, but they aren’t mission-critical.
Examples:
Adding a clubhouse entertainment system
Upgrading outdoor furniture
Installing decorative fencing
Replacing signage for a fresh look
These projects should only move forward if higher-priority needs are already covered.
Step 3: Align Projects with Your HOA’s Budget & Reserve Plan
A well-run HOA doesn’t fund major projects from the operating budget — that’s what reserves are for. So before green-lighting a big project, ask:
✅ Is this included in our reserve study? If not, why not?
✅ Do we have reserve funds to cover it, or do we need a special assessment?
✅ If we push this project back, will it cost more later?
If your reserves are underfunded, it’s time to reassess your long-term capital improvement strategy and make sure your HOA is financially prepared for future projects.
💡 Your property manager should have already raised the alarm if your reserves are underfunded and unable to meet your HOA’s long-term obligations. If they haven’t—or if reserve planning isn’t a priority in your management strategy—it may be time to reevaluate your relationship and find a management team that actually plans for the future.
Step 4: Get Owner Buy-In & Communicate Clearly
Nothing frustrates homeowners more than feeling out of the loop on how their dues are being spent. To build support for capital improvements:
📢 Explain why projects are necessary—Highlight the long-term benefits and cost savings.
📊 Share the financial plan—Be transparent about funding sources and how it impacts dues.
📝 Hold Q&A sessions or town halls—Let homeowners ask questions and provide input.
📬 Use multiple communication channels—Emails, newsletters, portal updates, and meetings all help.
When owners understand why projects are happening and how they benefit the community, you’re less likely to deal with pushback.
💡 Your property manager should play a key role in communicating capital projects to your community — explaining the “why,” providing financial context, and ensuring homeowners understand the long-term benefits. If they’re not helping facilitate these conversations—or worse, if homeowners don’t trust them—your board may be fighting an uphill battle. If transparency and engagement aren’t a priority in your management relationship, it may be time to reevaluate.
Step 5: Plan for Next Year Now
HOA capital improvements shouldn’t be last-minute decisions. Once this year’s projects are set:
✔ Schedule maintenance check-ins to catch small problems before they escalate.
✔ Update your reserve study annually to stay ahead of upcoming expenses.
✔ Start discussing next year’s priorities now so you aren’t scrambling next spring.
A proactive board doesn’t just put out fires—it prevents them in the first place.
💡 A proactive property manager doesn’t just react to maintenance issues—they help your board plan ahead. Your manager should be tracking upcoming capital needs, coordinating reserve study updates, and keeping your board informed about budgeting for future projects. If you’re only hearing about major expenses when it’s already too late to plan for them, your management team isn’t doing their job. A great property manager helps you stay ahead—not scramble at the last minute.
Final Thoughts: Be Strategic, Not Reactive
Don’t let project planning become a game of chance — your HOA’s financial health and property values depend on smart, strategic decision-making. By following these steps, your board can prioritize capital improvements effectively, maximize your budget, and keep your community in top shape.
📌 Need a reserve study or expert guidance on capital project planning? Schedule a Free Consultation with K&K Today →
