PREDICTOR combines the features of an Executive Information System and a Decision Support System. Using consolidated budget data and forecasts of future costs, the system:
- Quantifies the future financial situation faced by Condominiums/HOA's.
- When called upon to do so, recommends a fee-based and/or assessment solution to overcome forecasted deficits..
- Allows the user to make adjustments to form a hybrid solution or create a fully customized solution using fees, 13th months, special assessments, fixed term loans, and/or lines of credit.
With its heavy emphasis on graphics and instant responses to proposed actions, PREDICTOR has proven to be an ideal tool for helping to forge consensus within large groups. Here is a sampling of PREDICTOR’s specific capabilities:
- Predicts a “just in time” solution to the problem of future annual operating costs exceeding current annual income. The “just- in-time” approach keeps funds in the hands of homeowners until needed, but has the potential disadvantage of fees over the long term rising to a level where they may have an adverse impact on property values. Therefore the solution is adjustable to reflect other considerations.
- Upon request, creates an alternative "early funding" strategy that minimizes long-term fees. The pros and cons of this approach are opposite to that of "just-in-time": lower fees in the future but higher than sufficient fees to fund current needs. Adjusting Predictor's solution to meet the particular needs of the Association is frequently the best approach.
- For future capital expenses, Predictor makes available similar “just in time” and early funding solutions, but also introduces a range of other funding options : the ability to cap fee increases, complete or partial dependence on special assessments, the use of a 13th month fee in selected years, and the use of debt through either a traditional fixed term loan or line of credit (with options to take a portion of the monthly debt payments out of the loan principal).
- Allows adjustments to all of the foregoing solution strategies thereby facilitating creation of a hybrid or customized solution tailored to the specific needs of the particular Association.
- Allows for the use of inflation estimates specific to a particular cost category or to a capital asset.
- Accommodates non-fee related income such as may be derived from microwave towers, solar panels, "buy-in” requirements for new owners, etc.
- Maintains separate analyses of the annual operating costs and the capital costs, thereby allowing one to focus on only one aspect when appropriate to do so. Also accommodates those Associations that do not distinguish between operating costs and capital costs but simply manage a single fund.
- Makes "what if” analyses convenient and quick. Sensitivity to inflation changes, fee adjustments, project cost estimates, etc. are displayed instantly.
- Displays the combined result of average fee increases and other actions necessary to support both the annual operating and future capital expenses.
- Given the portion of common expenses that each particular residential unit is responsible for, PREDICTOR produces a forecast of fee increases and assessments by year for each type of unit.
- Provides the user the ability to input risk tolerance, and then highlights whether the plan exhibits cash flow problems.
“Outstanding value! Have never seen anything like it!”
David Levy, President, Sterling Services, Inc.
2016 Management Company of the Year, New England Chapter CAI