Accurate Cash Flow Forecasts Helps Plan for the Future

Wakeland Housing and Development Corporation, a nonprofit organization that develops affordable housing communities, was facing challenges with its financial forecasting. The organization's major revenue stream comes from developer fees, which are built into the financial structure of each development. These fees are earned based on triggered mechanisms such as when the development team completes construction, closes permanent financing, and receives form 8609 from the IRS. Prior to discovering Centage, Wakeland was using an Excel spreadsheet for its pro forma budget, which was difficult to update and manage on an ongoing basis. The spreadsheet was not providing the analytic information needed and forecasting future cash was a difficult process. The accounting team was also responsible for managing the effects of Wakeland’s pipeline, which required them to project cash flow, balance sheet, and P&L. If a milestone was late, the team had to recreate the forecasts in their spreadsheets, which was time-consuming.

Wakeland Housing and Development Corporation is a nonprofit organization that develops affordable housing communities for low-income working families, seniors, and people who have experienced homelessness. Since its inception in 1998, the organization has created more than 7,500 units of affordable multifamily rental housing at 53 properties throughout the state of California. Wakeland works with a variety of municipalities, developers, and redevelopment agencies throughout California. To build its communities, Wakeland partners with investors, and also taps into federal, state, and local funding resources, including tax-exempt bonds and tax credits. Each property is its own entity, and Wakeland serves as the nonprofit general partner of that entity.