KBV: Ballots on their way

[CO skier]

Furthermore, the way the vote is structured is also interesting. If the votes for any individual apartment do not constitute a majority of all owned weeks for either "yes" or "no", then the IOA casts the vote for that apartment. Just given the nature of these elections, and the fact that many owners don't bother responding, it will not surprise me if a fair number of IOA apartments do not have a declared majority out of returned owner votes. This potentially gives the IOA substantial power. Guess who makes up the majority of the IOA Board?

This is easily the most interesting aspect of this vote. I have never heard of a timeshare structured in this way, so I doubt this is part of the KBV governing documents. Is this just a case of the HOA asserting "if the owners do not like it, they can just sue us" and the HOA can simply invent such a vote?

This would be precedent setting throughout the timeshare industry for aging timeshares that are buried in bad debt with no alternative.

If the whole unit owners want a legal challenge, then challenging this voting structure would seem to be a fairly strong case, if the governing documents do not specifically allow this. What then, if it drags on for years? Blame the whole unit owners or blame the HOA for acting outside its authority?

 

[bnoble]

doubt this is part of the KBV governing documents.

Your doubt is misplaced. The letter quotes them.

This structure is probably unusual and likely does not occur in many timeshares, but it is a consequence of the IOA (timeshare) being structured as part of a larger comdominium (the AOAO) that includes the whole owned units. It’s probably also due in part to the fact that the AOAO predates the IOA. So it is reasonable that the AOAO voting method was defined first (one vote per unit), and the IOA had to fit into that somehow and this is how. And, this special election is on behalf of the AOAO, not the IOA.

 

[CO skier]

Your doubt is misplaced. The letter quotes them.

This structure is probably unusual and likely does not occur in many timeshares,

This "unusual" sunset clause is certain to mean the beginning of the end of KBV on May 2nd, and the whole unit owners will be SOL and looking for a new home/vacation home with whatever proceeds they may get from the auction.

 

[bnoble]

Many of the whole owners might well vote in favor of it. if I understand the market correctly, the remediation costs about as much as or more than these condos are worth. Even if there is some value left, getting there would take five years. I strongly suspect that many of them are ready to just cut their losses and move on, because they’d just be throwing good money after bad.

In fact I think some of them will have to or it won’t pass, because I think more than a quarter of the units are wholly owned.

 

[CO skier]

In fact I think some of them will have to or it won’t pass, because I think more than a quarter of the units are wholly owned.

As I recall from my stay at KBV, there were three ocean front buildings and at least 5 or 6 "lagoon" buildings (it has been more than a few years and my memory is not what it used to be). Some of the oceanfront units were personalized and obviously someone's home, so I could see that maybe a quarter of the oceanfront units might be wholly owned, but a quarter of the whole resort being wholly owned seems quite a stretch.

 

[bnoble]

The TUG user @jacknsara was on the Board at one point, and shared these numbers. There are 45 whole owners out of 150 total, so 30%.

there are three associations at the site
one covers the 150 condos - that is the Association Of Apartment Owners AOAO
one covers the timeshare that includes 105 of the 150 condos - the Interval Owners Association IOA
the third includes the AOAO, the KBR hotel and the owner of the land (currently undeveloped) south of the hotel; the formal name escapes me at the moment and is not relevant to this thread

Post in thread 'New Board letter. Special Assessment estimate.'
https://tugbbs.com/forums/threads/new-board-letter-special-assessment-estimate.346323/post-2871517

 

[bnoble]

Just as a reminder: proxies have to be received (not sent) by April 27th. The easiest way to make sure that happens is to vote electronically.

 

[lotus921v]

Whatever happened with this?