The most effective condo and co-op boards don’t wait for issues to surface. They set clear goals early, understand what the building needs in the year ahead, and use that roadmap to shape the budget. Annual planning and budgeting go hand in hand, the goals guide the numbers, and the numbers clarify what’s possible.
Handled well, this process helps the board stay aligned, gives residents confidence, and sets the tone for a smoother, more predictable year.
Here’s a simple, thoughtful way to approach annual planning in 2026.
Start with a clear picture of where your building stands
Before deciding what you want to accomplish, take stock of:
Your financial footing
Look at reserves, cash flow, and any expected increases in insurance, utilities, or staffing. Insurance remains one of the biggest unknowns for 2026, so reviewing your risk profile early is key. For more context, see our guide on rising insurance costs.
The building’s physical condition
Review recent inspections, open violations, loss recommendations, and capital needs. If maintenance has been delayed, our guide on avoiding deferred maintenance is a useful starting point. A clear baseline helps you set realistic priorities.
Resident sentiment
What’s working? What isn’t? Where are people confused or frustrated? Understanding the “temperature” of the building helps shape goals that actually matter to residents.
Choose a small number of priorities
Most boards pick three to five areas to focus on. These often span a mix of:
- Financial stability — strengthening reserves, preparing for insurance increases, right-sizing operating expenses
- Capital projects — planning ahead for Local Law 11, energy upgrades for Local Law 97, or restoring aging infrastructure
- Operations — improving communication, reviewing vendor performance, or updating building policies
- Community needs — resident experience, livability issues, building culture
Keeping the list focused helps prevent boards from overextending themselves, or trying to tackle too much without having the funds.
Look beyond the next year
Annual planning isn’t only about the next twelve months. Many of the biggest needs in NYC buildings require multi-year planning, especially when major compliance rules or capital upgrades come into play.
Boards should take time to look at:
- what must happen in the next 2 to 3 years
- what needs early planning to stay compliant in 5 years
- what should be mapped out even 10 years ahead
A few examples:
- Local Law 11 cycles require scaffolding, inspections, and façade work every five years.
- Local Law 97 limits tighten again in 2030, which may require multi-year energy upgrades or system replacements.
- Elevator modernizations, roof replacements, HVAC upgrades, and riser work often need years of planning and budgeting.
Once the long-range picture is clear, boards can ask:
- What should we accomplish this year to stay on track?
- Which projects need early design work or vendor scoping?
- What should be incorporated into next year’s reserve planning?
- What can wait — and what absolutely cannot?
Tying this year’s goals to longer-term needs helps avoid the scramble, sticker shock, and emergency assessments that come with last-minute planning.
Turn priorities into a simple, realistic plan
Once your goals are clear, the next step is shaping them into a plan that feels achievable. You don’t need a rigid calendar or a detailed project chart. What matters is clarity about what needs to happen first, what depends on budget decisions, and what requires outside support.
A few questions can help:
- Which priorities are tied to compliance or legal deadlines?
- Which initiatives require design work, vendor bids, or contractor lead time?
- Which goals depend on finalizing next year’s budget?
- What would create the biggest impact, or relief, if completed earlier in the year?
- What can reasonably wait until later?
This is where annual planning and budgeting start to meet. Many boards outline their goals first, then adjust as the budget takes shape. Others work through both processes at the same time. Either approach works, as long as there’s a clear connection between the board’s objectives and the building’s financial reality.
If you’re weighing how to communicate potential fee changes tied to next year’s budget, our guide on communicating monthly fee increases may be helpful.
Communicate early and clearly
Annual planning only works when owners understand the “why” behind decisions. Clear communication is one of the most effective tools a board has.
A few principles:
- Share priorities with owners at the end of the year, especially if fees are increasing
- Give context for major decisions
- Answer questions collectively rather than one-off
- Be transparent when plans shift or budgets need adjusting
Clarity builds trust, and trust reduces tension, especially when discussing big decisions around fees, reserves, or capital projects.
Revisit your plan midyear
Even the best plans evolve. Set aside time midyear to review what’s on track, what needs to shift, and whether new information requires reprioritizing. Insurance renewals, new inspection findings, or emergency repairs can shape the year in unexpected ways. A midyear reset keeps the board aligned and responsive.
The bottom line
Annual planning isn’t about creating a perfect roadmap. It’s about giving the board structure for the year ahead, understanding what the building needs most, and keeping residents informed along the way.
When planning and budgeting work together, boards move with more clarity and less stress — and the building benefits all year long.
