The October Question Every Board Treasurer Should Answer

HOA treasurer capital planning has a single question worth putting to your board in October. If we started the loan process today, could we close by our fiscal year end?

For most associations, the fiscal year ends December 31. Today is early October. That leaves roughly ninety days. In ninety days, a well-prepared association with a current reserve study, a board that meets monthly, and a project scope that underwriters have seen before can close a loan. Most associations do not have all three.

The Ninety-Day Reality

We have walked through this timeline with boards for years. The pattern is consistent. Boards assume a loan closes in thirty days because that is how a home mortgage closes. An HOA loan is a commercial credit decision and takes longer. Most close in 30 to 90 days, and some take longer for a variety of reasons.

The reasons are structural. An HOA loan involves an association that meets monthly, a governance process that requires multiple board votes, a reserve study that has to be current, insurance certificates that have to be pulled, budgets and financials that have to be prepared, and underwriting that treats the association as an ongoing entity rather than a single borrower.

The Vote Count

Three votes minimum. Authorize the application. Approve the term sheet. Approve the closing documents. Each vote happens at a board meeting. If the board meets monthly, that is three months of meeting calendar right there.

Some associations require a full-membership vote in addition to a board vote. That adds another cycle. Some associations require the term sheet to be reviewed by counsel before the board can approve it. That can add another two to four weeks.

Why Boards Learn the Answer Too Late

The typical pattern: the treasurer identifies a capital project need in September. The board discusses it in October. The board asks for financing options in November. By the time preliminary rate ranges come back in December, the fiscal year is almost over and the project decision slides to Q1.

That slide is not a small problem. If the project needs to mobilize in spring 2027, the loan has to close by early spring. If the board is still discussing financing options in January, closing in March is aggressive and closing in April is realistic. Construction mobilization in May pushes major milestones into the peak of construction season, which is exactly when contractors are most stretched and least flexible on pricing.

The Cost of Slipping a Quarter

Two costs. First, the direct cost: construction inflation. Six months of delay in a market where construction costs keep rising adds real dollars to the project.

Second, the indirect cost: contractor availability. The best contractors book their spring 2027 schedules in Q4 2026. If the board is not ready to sign a contract because financing is not confirmed, the association falls to a second-tier contractor list or waits for the next season.

The Better October Question

Reframe the question. Instead of asking whether a loan can close by fiscal year end, ask: what needs to be true in December so we can submit a clean application in January?

That version of the question gives the treasurer an actionable list. Reserve study refreshed. Budget draft finalized. Insurance certificates pulled. Board vote calendar sequenced. Preliminary rate range acknowledged. Loan structure preference documented.

None of those steps require an application. All of them can be done in October and November. Together they compress the January-through-April timeline by weeks.

What a Treasurer Should Do This Month

Three things. First, pull the most recent reserve study and confirm the last field inspection date. If it is more than two years old, schedule the refresh.

Second, ask your property manager for the current year-to-date financials and the draft 2027 budget. If either is not ready, that becomes a Q4 priority.

Third, have a preliminary conversation with us about the lenders in our network. There is no upfront cost, and we are paid at closing. Get a rate range. Get a timeline. Get a punch list of what your association needs to have in order.

None of the three commits the board to anything. All three shorten the eventual timeline.

What This Looks Like in Practice

Take a 150-unit association with a $4 million project. The board starts prep in October 2026. Reserve study refreshed by mid-November. Preliminary rate range in hand by late November. Financing approach approved by the December board meeting. Formal application submitted first week of January. Term sheet approved February meeting. Closing prep through March. Closing early April. Depending on the lender, the rate is locked when the application is submitted, when the term sheet is signed, or in the final days before closing. Contractor mobilizes late April.

That is a clean execution. It requires the October start.

Contrast: the same 150-unit board that starts in January. Reserve study refresh takes six to eight weeks. Preliminary rate range in February. Board approval to apply in March. Formal application in April. Closing by June, and the contractor has already moved on to the next job.

Talk to Us

If you are a treasurer reading this in October, the ninety-day window is open. Schedule a consultation this month. We will walk through your reserve study, your budget, your board calendar, and your preliminary rate range in a single working session. 300+ loans placed since 2016 across 50 states. There is no upfront cost, and we are paid at closing. Schedule a consultation or run the numbers in our loan calculator today.