Single Most Important Tool for How HDFCs Can Stay On Track
What is the most important tool for keeping a co-op or condo on track throughout the year? In my view a well thought out budget is the single most important tool for keeping a co-op or condo on track during the year. If each line item is properly vetted, a budget announces to your stakeholders the Board priorities for the year. While most items are fixed, such as heating, water & sewer, electric, etc, the discretionary items signal what the Board considers to be the most important or critical matters to be addressed during the calendar year. The budget process, which can last several months, enables Board members to weigh in on what he or she believes should be the co-op's or condo's priorities for the upcoming year.
Besides considering discretionary projects for the upcoming year, during the budget process, a Board gets a chance to take a detailed look at the building’s finances and operations. As a result of this review the Board can decide whether to increase the monthly charges or implement a special assessment. In our view, establishing a budget is the most important activity that a Board undertakes.