SHORTSTACK COTTAGES
Transition Period & Budget Report | May 2026 – Full Occupancy Projection
This Is a Transitional Period
Shortstack Cottages Condominium Owners Association is in a startup phase. The association’s first units closed in May 2026. Banking infrastructure, management company operations, and full cost accounting are all still being established.
Startup Reality vs. Full Occupancy Budget
The chart below compares what actually happened during May–September 2026 (startup phase with 4 occupied units) against what the budget projects for a full 6-month period at 15-unit occupancy.
| Category | May–Sept 2026 (Actual) | 6-Mo Budget (15 Units) | Notes |
|---|---|---|---|
| Occupancy | 4 units (26.7%) | 15 units (100%) | Startup to full occupancy |
| Owner Dues Collected | $3,118.99 | $16,512.30 | 5 mo actual + 1 mo prorated vs. 6 mo full |
| Total Cash In | $9,269.77 | $16,512.30 | Includes capital contributions, reserves (actual only) |
| Total Cash Out | $6,274.41 | $16,513.15 | Operating + maintenance + utilities (actual vs. projected) |
| WM (Waste Management) | $3,840.60 | $4,748.00 | Split: op account paid $750.20; developer $3,090.40 |
| Irrigation & Water | $1,363.73 | $1,300.00 | Seasonal (May–Oct). Developer handled backflow. |
| Management | $865.32 | $3,450.00 | CGCC began mid-period (actual); full 6 mo projected |
| Insurance | $0.00 | $1,101.00 | Not yet invoiced to association (billing pending Apr 2027) |
| Reserves (15% allocation) | $440.32 | $2,476.85 | Owner contributions only (actual); full 15-unit allocation (projected) |
Occupancy Ramp: May 2026 – Present
May 1–19, 2026
May 20 – Sept 30, 2026
Full Occupancy Target
Current Status: Occupancy has been stable at 4 units (26.7%) from May 20 through Sept 30. No additional sales closed during this 4-month window. Occupancy growth timeline remains unknown.
Budget Projection: Full Occupancy (15 Units)
This is what operating costs will look like once all 15 units are sold and occupied:
Expense Breakdown (6 Months @ 15 Units)
| Category | 6-Month | Monthly | Details |
|---|---|---|---|
| GENERAL & ADMINISTRATION | |||
| Management (CGCC) | $3,450 | $575 | Full cost: $4,950 − Developer offset: $1,500 |
| Insurance | $1,101 | $184 | D&O + General Liability |
| Legal | $500 | $83 | Legal services |
| Accounting & Tax Prep | $185 | $31 | Annual accounting |
| Licenses & Permits | $150 | $25 | Annual fees |
| Operating Contingency | $1,522.30 | $254 | Flexible reserve |
| SUBTOTAL — G&A | $6,908.30 | $1,152 | |
| MAINTENANCE & GROUNDS | |||
| Backflow Testing | $100 | $17 | Annual |
| Irrigation Maintenance | $850 | $142 | Seasonal (May–Oct) |
| Maintenance Contingency | $500 | $83 | Reserve |
| SUBTOTAL — MAINTENANCE | $1,450 | $242 | |
| UTILITIES & COMMON AREA | |||
| Trash & Recycling | $4,748 | $791 | 2 pickups/week |
| Common Area Water | $450 | $75 | Irrigation + common use |
| Common Electric | $480 | $80 | Common area lighting |
| SUBTOTAL — UTILITIES | $5,678 | $946 | |
| RESERVES & CAPITAL | |||
| Reserve Fund (15% allocation) | $2,476.85 | $413 | Monthly reserve contribution |
| TOTAL ANNUAL OPERATIONS | $16,513.15 | $2,752 | |
Developer (PCLT) Role During Transition
While occupancy is ramping up, PCLT Development LLC reimburses the Association for expenses related to unsold (developer-held) units:
What PCLT Reimburses (Pass-Through Costs)
- Common water/sewer (proportional share)
- Common electric (proportional share)
- Trash/recycling (proportional share)
- Unit water/sewer for unoccupied units
- Reserve contribution for unoccupied units
- $250/month management fee offset
- Association invoices PCLT monthly
What PCLT Does NOT Reimburse
- Insurance (D&O + General Liability)
- Legal fees & accounting services
- Licenses & permits
- Operating contingency
Transition Period Summary (May – September 2026)
What Actually Happened
- May 1: MK closes, occupies Unit 10003
- May 1: Banking infrastructure established
- May 20: 3 more owners close (DW, LG, ZB)
- May 20: First full month of 4-unit occupancy begins June
- 4 units stable; no additional sales
- All 4 owners current on dues ($183.47/mo each)
- PCLT reimburses via checks (Aug 2, Sept 16)
- Developer still handling landscaping & some costs
Actual Cash Position (Sept 30, 2026)
5-Month Financial Snapshot
| Item | Actual (May–Sept) |
|---|---|
| Owner Dues Collected | $3,118.99 |
| PCLT Reimbursements | $3,025.46 |
| Capital Contributions | $1,475.76 |
| Owner Reserve Accrual | $440.32 |
| TOTAL CASH IN | $9,269.77 |
| Waste Management (Paid from Op Account) | $750.20 |
| Irrigation & Water | $1,363.73 |
| Management (CGCC) | $865.32 |
| Electric | $204.76 |
| Developer-Paid WM | $3,090.40 |
| TOTAL CASH OUT | $6,274.41 |
| NET POSITION (May–Sept) | +$2,995.36 |
What Comes Next
FY2027 Budget Cycle (November 2026 – October 2027)
The first complete and accurate quarterly financial reporting will begin with FY2027. This will be the Association’s first full budget year with:
- Complete accounting — Full-year operations from month 1
- All services active — Landscaping (GT Solutions), insurance, legal, accounting all on board
- Real data for scaling — Actual May–Sept costs used to establish baselines for 15-unit operations
- Quarterly reports — Actuals vs. budget comparisons starting Q1 FY2027
- Board transition planning — Timeline for 11+ occupancy threshold and management transition
Key Milestones
At 11 occupied units (73.3% occupancy) OR May 1, 2029 — whichever comes first — board control transfers from developer to owners.
April 2027 renewal may see 3–5% rate increase. PCLT contribution will be required. FY2027 budget includes 5% cushion.
Scheduled for February 2027 regardless of turnover timing. Previous study completed summer 2025 during construction.
Current 4 units occupied; no additional sales since May 20. Conservative planning assumes 4–6 units through Oct 2027.
Understanding the Transition
Shortstack Cottages is at a critical juncture: the Association is fully operational with robust financial fundamentals, but occupancy is still ramping up. The actual May–September experience (4 units, $2,995 net positive despite developer subsidy) demonstrates that the business model works.
The budget projection for full occupancy (15 units at $183.47/month) shows what sustainable operations will look like. The path from here to there is not yet clear (occupancy growth timing is unknown), but the Association is collecting real cost data to ensure that when full occupancy is reached, costs will be accurate and assessed fairly.
This is not a failed budget period or a financial crisis. This is a startup community building the foundation for long-term financial health.