We prepared the HOA budgets for a large builder within a master-planned community based on the construction phasing they initially provided us with. We were initially instructed to do four 25-lot sales phases because they, “don’t want to deal with too many public reports”. To streamline the process, we had an in-person meeting at their corporate office to discuss the budget structure and explore cost-saving measures.
During the meeting, we introduced our innovative “Phase Predictor” tool, available on our website for free. After running the numbers, which included the anticipated number of sales per month, consulting costs, and public report costs, the tool recommended eight phases for the project; twice the number of DRE phases initially planned. While this increased filing fees, it also resulted in significant savings of over $200,000 in HOA dues paid to the Association!
By recommending smaller phases, such as 12 lots instead of 25, the builder only paid for the other 11 lots when one sold, resulting in substantial cost reductions. The owner of the building company was thrilled with the projected savings and quickly requested changes to the Phasing program, which we promptly implemented.
They also never had to “Deal with too many public reports” because they used our firm for DRE Processing as well, which we coordinated directly with the escrow unit and the property manager to ensure all the public reports were issued and distributed correctly and the correct budget was being used. We also coordinated the release of their bonds as the phases were closing and were released more quickly because the phases were smaller. The builder was kept informed along the way but didn’t have to do anything other than keep building homes!
