Hoa Operations Checklist For Capital Projects From Board Vote To First Draw

The board finally votes “yes” on the roof, concrete, or pipe replacement. The motion passes, owners clap (or at least stop glaring), and then everyone turns to the manager and asks the real question:

“Now what?”

Approvals are the visible part of a capital project. The tricky part is the operational spine underneath: documentation, lender requirements, contractor coordination, draw schedules, and owner communication. When those steps aren’t mapped out, projects stall, costs creep, and trust erodes.

A practical HOA operations checklist keeps you out of reactive mode. Instead of scrambling, you have a clear path from the board vote to the first draw — and all the way through close-out and repayment planning.

Key Takeaways

• A capital project doesn’t start at the board vote; it starts with a current reserve study, scope definition, and a clear funding gap.

• Your hoa operations checklist should cover three lanes in parallel: documentation, funding strategy, and owner communication.

• Lender readiness (financials, governing documents, project bids, minutes) is just as important as contractor readiness.

• Clear draw procedures, internal controls, and progress tracking reduce disputes and keep lenders, contractors, and owners aligned.

Step 1: Before the Vote – Build a Solid Foundation

Most “project emergencies” are actually planning problems that surfaced late. Before a board votes, the operations team should already understand what’s being replaced, what it costs, and where the gaps are. That usually means tying the project back to a reserve study, recent inspections, and any state or local requirements that apply to your community. Community association groups consistently frame reserve studies as a budget planning tool to align future repairs with a workable funding plan, not a one-time report you file away.

From there, the operations mindset is simple: reduce surprises. That means validating the scope (what’s included, what’s not), confirming the useful life of components, and documenting risks if the board delays work. Many boards also benchmark their reserve levels against industry guidance that links healthy reserves with fewer special assessments and better long-term property values. Armed with that, you’re not just asking for a “yes” vote; you’re showing why the project is necessary and what happens if it’s kicked down the road.

Operationally, this is also the moment to assemble your “project packet” — financial statements, delinquency reports, reserve study pages, governing documents, and draft contracts. A lender will eventually ask for almost all of this. Centralizing it early shortens timelines later and avoids frantic document hunts. A practical way to standardize that prep is to lean on an existing association loan FAQ as a reference for the kinds of questions lenders routinely ask and the documentation they expect to see.

Step 2: From Board Approval to Signed Term Sheet

Once the board approves the project concept, the operations checklist shifts from “should we?” to “how exactly will we pay for this and in what order?” Reserves, increased assessments, special assessments, and association loans are all tools in the same toolbox. In most communities, the real work is blending them into a funding plan that protects cash flow and owner stability. At the same time, you’re still responsible for the basics: updated budgets, clean ledgers, and clear minutes that record each decision.

It helps to frame reserves as long-term maintenance money rather than a backup operating fund. In common-interest communities, reserve funds exist specifically for capital repairs and replacements, and they’re overseen by the board under the community’s governing documents. When reserves are short, an association loan can bridge the gap, allowing the project to start now while contributions catch up over time. Your hoa operations checklist should include a standard process for running scenarios: “all cash,” “cash plus modest dues increase,” and “cash plus financing,” so the board can see how each approach affects timelines and owners.

At this stage, operational clarity matters more than clever financing ideas. One practical move is to run project cost and per-unit payment estimates through an association loan calculator and attach those outputs directly to the board packet and owner communication draft. When everyone can see, for example, “this project equals about $95 per unit per month for 15 years,” conversations become far less abstract. Your checklist should also include standard language for motions and resolutions that authorize the board to seek financing, negotiate terms, and sign on behalf of the association — so you’re not re-writing those from scratch each time.

The final piece in this phase is lender engagement and timeline alignment. As soon as the board authorizes financing, your checklist should trigger three parallel tasks: send the project packet to prospective lenders, confirm what additional documents or inspections they require, and map their underwriting timeline against your construction schedule. Underwriting that takes six to eight weeks doesn’t have to be a crisis if you’ve already built that time into owner expectations, contractor start dates, and your internal calendar.

Step 3: Draws, Construction Oversight, and Close-Out

Once the loan closes and the project starts, day-to-day operations become the centerpiece. This is where many associations feel pressure from all sides: contractors want progress payments, owners watch every truck and invoice, and lenders expect documentation that matches the draw schedule. A good hoa operations checklist turns that pressure into a rhythm: verify work, collect backup, submit draw, reconcile books.

Before the first draw, confirm three items in writing: who can request draws, what documentation the lender requires (invoices, signed change orders, inspection reports, updated schedules), and how quickly funds are released once a draw is approved. Many boards also assign one director or committee to sign off on pay applications after verifying that the work matches both the contract and any change orders. To keep everyone grounded, some boards share educational materials with owners on how to fund HOA projects without large special assessments, so residents understand why the association opted for structured funding instead of lump-sum charges.

On the accounting side, your checklist should require a clean separation of project funds and operating activities. That usually means distinct tracking codes in your accounting software, consistent reconciliation after each draw, and a running summary of total project cost versus the original budget. When change orders appear — and they will — the operations team should have a set procedure: evaluate necessity, confirm contingency capacity, update the funding model if needed, and communicate the change in plain language to the board and owners.

As the project winds down, the checklist doesn’t end; it shifts to close-out tasks. That includes collecting warranties and as-built documents, confirming final inspections and approvals, conducting a post-project walk-through with the contractor, and updating the reserve study assumptions now that a major component has been replaced. Many boards also document “lessons learned”: what went smoothly, which approvals took longer than expected, and what they’d change about the process next time. That way, your hoa operations checklist improves with each project instead of living as a static document.

Conclusion

If you treat every capital project as a one-off emergency, operations will always feel chaotic. If you treat it as a repeatable process — scoped with a reserve study, funded with a clear plan, documented with a standard packet, and managed through a draw and close-out routine — the board vote becomes just one step on a well-marked path from “we need this” to “the work is done and paid for.”

FAQs

How detailed should an HOA operations checklist be for capital projects?

It should be detailed enough that a new manager or board member could follow it without guessing. That usually means clear steps for planning, funding, approvals, draws, and close-out, with references to where documents are stored. If the checklist feels like it’s repeating your governing documents word-for-word, it’s probably too long; aim for a practical guide, not another rule book.

Who should own the checklist — the board or the manager?

Operationally, the manager or management company usually owns the checklist and updates it based on experience. The board, however, should formally adopt it or at least acknowledge it as part of the association’s standard practice. That shared ownership helps avoid situations where a new board demands shortcuts that put the association at risk.

When should we start talking to lenders about potential project financing?

You don’t need final bids to start a conversation. Once you have a realistic project range, a current reserve study, and preliminary scope, it’s reasonable to reach out to lenders for ballpark terms. Doing that early lets you build underwriting timelines into your project plan instead of scrambling to secure financing after owners already expect work to start.

How do we handle owners who oppose using financing instead of a large special assessment?

The best approach is transparent math and consistent messaging. Show what the project costs under different scenarios — reserves only, special assessment, and assessment plus financing — and explain how each option affects monthly obligations and risk for owners. Many communities find that when owners see the numbers side-by-side, resistance to a structured funding plan drops.

What’s the simplest way to keep draw requests organized?

Use a standard package for every draw: copy of the pay application, backup invoices, photos or inspection notes confirming progress, and an internal sign-off from the manager and designated board member. Store each draw packet in a shared folder with a consistent naming convention so you can answer questions from lenders, auditors, or future boards without digging through old emails.

How often should we update the hoa operations checklist?

Review it after every major project and at least once every couple of years. Laws change, lender expectations evolve, and your own community’s risk tolerance can shift after big repairs or major events. A short post-project debrief is often enough to identify one or two improvements that make the next project smoother.