Reports
How to read your briefing
Plain-language briefings in PDF + digital. Typically 24 hours. This guide covers sections, the assessment badge, and methodology.
What You Get
Your report is a single document built for buyers. It opens with the assessment and a quantified exposure (when relevant), then walks through the financial picture, the property, the community, and the governance. Every finding is tied to evidence in the documents you provided.
| Section | What it tells you |
|---|---|
| Assessment badge | Proceed, Negotiate, or Caution—plus quantified exposure and basis when applicable |
| The Financial Picture | Revenue, expenses, reserves, debt, arrears, operating ratio, reserve runway, and material exceptions (overruns, levies) |
| The Property | Capital projects, engineering oversight, physical risks for the age and construction type, and document gaps |
| The Community | Owner participation, meeting attendance, complaints, conflict, problem units |
| The Governance | Board competence, procurement discipline, action item follow-through, financial compliance |
| What Pellucis Looked For and Did Not Find | Inversions—expected documents or findings that do not appear. The absence is itself a finding. |
| The Full Picture | Strengths and concerns distilled into a closing summary |
| Pellucis Assessment (dimension ratings) | Financial Health, Property Condition, Governance, and Overall—with status and one-sentence note per dimension |
Section Guide
The Financial Picture
Revenue, expenses, operating ratio, surplus or deficit, reserves, debt, arrears, and reserve runway are all extracted from the documents and calculated—not estimated. Pellucis uses ratios that reveal the property's true financial position. If there is a material exception (a budget overrun, special levy, or reserve shortfall), the narrative leads with what is strong, then identifies the exception and its dollar impact. The data table gives you line-item values for quick reference.
The Property
Capital spending is analyzed against the property's age and construction type. For properties over 30 years old, we name the specific physical risks common to that era—property envelope deterioration, foundation settlement, parking lot base failure, and the like. The section ends with "What Pellucis did not find," listing document gaps: missing reserve fund studies, envelope assessments, mechanical or plumbing reviews. These gaps are expanded in the Inversions section.
The Community
"Who am I buying in with?" Meeting attendance, quorum health, committee activity, complaints, fines, tribunal references, and problem units are synthesized into a narrative. If there is zero conflict and engaged ownership, we say so plainly. If there are difficult owners or chronic complaints, we name the patterns.
The Governance
Board competence only—not owner dynamics. Procurement discipline, action item resolution, financial compliance, and response time are scored. The governance table summarizes each dimension with Strong, Adequate, or Weak. Budget overruns exceeding 20% indicate poor scoping or project management and are called out here.
The Assessment Badge
The assessment appears at the top of every report and drives the opening paragraph. There are three possible outcomes:
Proceed
The property passes our thresholds. Fundamentals are strong, governance is competent, and no material unmitigated exposure was identified. You can move forward with confidence.
Negotiate
The property has identifiable exposure that may warrant consideration in the purchase price. We quantify the exposure in dollars and provide a one-sentence basis. Strong fundamentals (reserves, surpluses, engaged ownership) support recovery—the exposure is material but addressable.
Caution
Fundamentals are compromised: deficit operations, depleted reserves, governance dysfunction, active litigation, or a critical unmitigated risk the property cannot absorb. We do not assign a negotiation amount for Caution—the concern is systemic, not a single line-item.
When the assessment is Negotiate, we always include a negotiation_amount and negotiation_basis. The number is derived from identified costs (budget overruns, reserve shortfalls, per-unit exposure) and is intended to inform your negotiation—not as legal or negotiation advice.
The Four Dimensions
Pellucis analyzes property through four pillars that correspond to the sections of the report:
| Dimension | What we assess |
|---|---|
| The Money (Financial Health) | Revenue, reserves, debt, arrears, special levies, operating ratios—extracted and calculated. Can the property pay its bills? |
| The Property (Property Condition) | Capital projects, engineering reports, structural risks, maintenance history against age and construction type. What does the property need next? |
| The Board (Governance) | How the board spends money, follows through on decisions, obtains competitive quotes, responds to problems. Is the management competent? |
| The Community | Owner participation, meeting attendance, quorum health, conflict between members, complaints, problem units. Do the people living in the property get along? |
Each dimension receives a status (Strong, Adequate, Monitoring, Concerning, or Critical) and a one-sentence note. The Overall dimension matches the verdict.
Inversions — What We Looked For and Did Not Find
Every Pellucis analysis includes an inversion: a systematic search for what should appear in the documents but does not. The absence of expected information is itself a finding.
Examples: a reserve fund study or depreciation report within the statutory timeline, a property envelope assessment for a 45-year-old structure, mechanical or plumbing infrastructure assessments. For each gap, we explain what is missing, why it matters for this property at this age, and what the buyer should do before closing (e.g., require the co-op to commission a study, retain an independent consultant).
Our Methodology
Pellucis is not a chatbot summary. Every assessment, flag, and score is validated against the source data before a report is delivered. For a detailed description of the analysis pipeline—the five-pass architecture, why each pass matters, and how they build the complete narrative—see our Analysis methodology. Every numerical finding—reserve adequacy, operating ratios, arrears rates—is calculated from the documents, not estimated. The narrative is written by AI; the numbers are not.
Scoring Framework
We use two primary scores to drive the assessment:
- Kill Switch (0–100): Derived from the risk register. Critical unmitigated risks, high severities, and structural findings reduce the score. Strong financials and resolved risks increase it.
- Community Health (0–100): Meeting attendance, quorum health, complaint density, conflict indicators (tribunal references, fines), and problem units.
Assessment Logic
The assessment follows a deterministic framework:
| Proceed | Kill Switch ≥ 70 and Community Health ≥ 60 |
| Negotiate | Kill Switch 40–69 and Community Health ≥ 60, or quality override when fundamentals support recovery |
| Caution | Kill Switch < 40, or Community Health < 60, or critical unmitigated risk > $100k |
Assessment Calibration
We weight fundamentals against exposures. A property with strong reserves, consecutive surpluses, zero conflict, and engaged ownership receives Negotiate even when there is a significant capital overrun—because the fundamentals indicate recovery capacity. We reserve Caution for properties where the fundamentals themselves are compromised: deficit operations, depleted reserves, governance dysfunction, or active litigation.
Quantified Exposure
When the assessment is Negotiate, we always provide a dollar amount and basis. The number is derived from identified costs—budget overruns, reserve shortfalls, per-unit exposure—and is intended to inform your negotiation. How you use it is your decision.