HOA Boards Five Year Business Plan
In HOA Boards, What You Need to Know but Weren’t Told, there is a HOA Boards Five Year Business Plan chapter. Within the chapter, there is a template that HOA boards can use to develop a five year plan.
Develop the five year plan in increments of one year. Then, set goals for the first year, the second, and so on. It also rolls into year six, then seven, so there is a continuing five year business plan.
The HOALeader refers to long range planning as “Strategic Planning”. A five year business plan is essentially the same thing. It is examining the HOA assets, finances, needs and desires of the community, and planning ahead.
In my book, HOA Boards, What You Need to Know but Weren’t Told,I advocated the board developing the plan. They would set aside thirty minutes or so during each board meeting.
I finally realized that would probably not be the most efficient way to develop a five year business plan. That’s because it takes more time to do the developing work. Now, I believe a committee can do a more efficient job of developing the HOA Boards five year business plan.
A Committee Should Develop the HOA Boards Five Year Business Plan
The committee should consist of four or five members.They should have diverse views so that a cross section of the community is represented. They would meet once each week and report their progress to the board at each monthly meeting. The job of the committee is to make recommendations to the board. The board makes the decisions.
In order to develop the HOA Boards five year business plan they need to consider the following:
- Query members to learn what the community wants, and needs.
- Recommend projects to the board that represent the desires of a majority of community members.
- Study the HOA’s budget.
- Plan the additions of programs in the year(s) that the budget allows.
- Recommend that the board establish a Maintenance Oversight Committee
- That committee will inventory the assets and compare with the Reserve Study.
- They will develop a schedule to periodically inspect every physical asset.
- They will schedule regular maintenance repair schedules which will catch problems before becoming an emergency.
- Follow the guidelines in the Five Year Plan in Chapter Nine of the book.