Poipu Point - Walk away from ownership?

[T_R_Oglodyte]

DRI will not take voluntary surrenders at Poipu - check your facts before posting. I have called two times and asked and begged. Even offering to pay the whole up front $6K in special assessment. They said they do NOT have a voluntary surrender program - you have to sell privately. Nobody will buy there now with what is going on.

As of a month or two ago, at the DRI message boards the DRI reps were indicating the voluntary surrender program was still in effect, so I stand by my statement. I suspect that you have been talking to the resort, which is not the place you need go to handle it. DRI is very low key about it, and lets people know about the program only through the DRI member forums. Go there for information. People at the resorts or on the general call-in centers are generally completely unaware of the program, by design. I believe that once you get on the right track, you wind up at the "Loss Mitigation" unit within DRI. If that's not where you've been in contact, you may have been at the wrong location.

For the current and most up-to-date information, the thing to do is to post a message on the BBS at the DRI Member Forums. If you post there and then DRI says they are not taking them back, even with assessments paid, that that would be the most current news and would be a recent development.

As I indicated, though, one requirement is that there be no encumbrances against the (i.e., loans paid off, all annual fees paid, no pending reservations, and no assessments). So I'm sure that before they would accept the deed under the program the entire special assessment would have to have been paid off. So I doubt the program will be of any help to those of us who are staring at this assessment.

 

[timeos2]

I understand the reality of all this. We are the owners and are on the hook for the repairs.
The problem I have is the "out of nowhere" cost that were sprung on us with only 2 options to pay. I do not have that kind of money. Things here have been financially tight for a while. We tried to sell our units a few times but decided to keep them by paying dues by renting the weeks to friends and family for the amount to cover them. Which is what we were going to do with this years units (we have 2 even year weeks)
So that leaves us with almost $6000 owed that we cannot pay. There is no place to beg, borrow, or......
What bothers me most is the lack of options. Even if I could swing $2000 this year, $4000 next year??? It would of some much more reasonable to stretch this out over ten years.
I haven't called them yet to find out what happens if I can't afford it, I was waiting to see if the outcry allowed for some creative alternatives, but none so far.
I do not know what to do. I am able to pay my bills and feed my family. Over the last couple of weeks we were already looking at how to do Christmas on a shoestring, and than this shows up.
I don't want my credit hurt or have my house harassed by collectors, but this could really damage our family.

I don't want to be cold about the tough situation this may place some owners in as that is no small problem. But it is no different than a home that has a small leak in the basement- or at the roof line, or a gutter that gets patched, repaired attempted over the years but, now years later, a full fix turns out to be a multi-thousand dollar repair "out of nowhere". What seemed to be a small, manageable issue turns out to be a major problem that you have to find a way to deal with. An HOA Board has the same issues but multiplied by hundreds of "homes".

You cannot stretch a critical repair lie this out over ten years awhile the payments are made. No contractor is going to guarantee costs 10 years out or keep returning to gear up & dabble at tiny sections of the job and then leave for months only to return and do it again months later. Not a reasonable way to operate. In this case the owners or the Association may need to float a loan to cover their costs & thus spread out, with added interest cost, the payment period. It is unlikely that the Association can float a loan as it would be massive and they have no assets to pledge - its not the owner of the property just the caretaker for the individual owners. So it falls to those owner's to figure out how to pay their share through whatever means they can find. It is their property and their maintenance/management company has identified needed work and a way to get it done. It may or may jt be the ONLY way but it is the way their elected representatives have chosen to use, much like a tiny version of the US Government model or representative democracy.

For those calling for lawsuits, owner uprising, demanding answers - great! Get involved - learn what exactly your representatives have been dealing with not the hearsay, rumors that circulate. You'll find simple, broad platitudes of "tear it down", "sue ____", etc aren't true options and would cost you even more. A true attempt to challenge the right of the Board to impose this SA would need a large block of votes and money (as in tens of thousands for a viable retainer) just to get started. More votes & money needed for each idea to actually be initiated - money that may produce no results beyond the satisfaction of knowing you tried and costs for the project still due from you and every other owner. Far better to spend the money to become part of the process. Attend the meetings, get the facts and act appropriately. Maybe there will come a time to sue but certainly not without verifiable facts in hand.

I hope for the sake of all owners and management this gets resolved and the resort can be a viable operation for decades to come. Many resorts have gone through tough times and come back stronger longterm - far more than have fallen into disarray or closed due to these types of issues. Interestingly it has been the hard nosed, "win at all costs" approach (by both sides) that have resulted in troubled resorts with years of decline and poor reputations as a results of costly litigation and refusal to compromise/pay. Those that took a path of compromise and negotiated resolution at limited legal cost tend to be the ones that moved on and often thrived. Be careful how hard you push for "your way" when others have equally doable plans. Compromise and agreement will move things along much better than conflict and tensions while the property continues to decline. You need to take the high road and get the job done. Take part and have your say then support whatever the final resolution is. It won't be inexpensive no matter how it goes but conflict is likely to be far more costly than an agreement between all involved.

 

[Passepartout]

I am in deep sympathy for those owners caught up in this mess. Especially for those who aren't in a financial position to pay the assessment.

For those who don't currently, and have always wanted to own a Hawaii TS, this may represent a unique opportunity. What will, when $65 million in repairs and upgrades are complete, amount to a brand-new facility that can be had for the price of under $6k (plus transfer fees) from an owner who wants/needs to just walk away. It hasn't been all that long since we paid similar amounts for a week in 30 year old TS condos in much less prestigious locales.

I hope that this ongoing nightmare can be brought to a conclusion that everyone concerned can live with.

Jim

 

[Luv2Travel2000]

Letter to HOA and DRI

We also just received our statement from the Point at Poipu AOAO with the Water Intrusion Assesment and what a shock! Our response in a letter was basically that we are being told 10 weeks in advance that we need to pay $7,126 or else. That is a lot of unbudgeted money. If a decision must be made between family survival and a ruined credit score, I'll choose my family. The problem has been known for years and we are being told to pay up in 10 weeks. That's absurd. We faithfully paid maintainence fees since the early 1990s feeling secure knowing that our property was being maintained. It appears it wasn't. We asked when we bought about natural disasters such as hurricanes and were told that insurance would take care of everything. I fear many owners will default and walk away leaving a much bigger mess for anyone who sticks around. There is no guarantee for anyone who faithfully pays. What a horrific dilemma.

 

[riothng]

Is anyone planning to attend one of the two meetings in California regarding the water assessment?...There is one in S. California Oct. 19th and another the following day...Oct. 20 in N. California...(San Fransico)...I'm planning on attending the one in N. California...if there's an attorney out there that wants to meet me there and is qualified in matters of this nature...I'll retain you...Please contact me...

Poipu Point Resort is the resort I am referring to in case there is any confusion...:annoyed: :annoyed: :annoyed:

If anyone attends the meeting and can record it please place it on YouTube and notify us owners so that we can not only understand questions asked during these sessions, but their responses. I have e-mailed and called DRI and they are not willing to open up a teleconference or video. It is not expensive and very easy to do thus it feels again that they are not being transparent with allowing deeper understanding.

 

[Rhinestone Redneck]

If anyone attends the meeting and can record it please place it on YouTube and notify us owners so that we can not only understand questions asked during these sessions, but their responses. I have e-mailed and called DRI and they are not willing to open up a teleconference or video. It is not expensive and very easy to do thus it feels again that they are not being transparent with allowing deeper understanding.

I received your e-mail and tried to respond and somehow lost it...could you e-mail me again so I can respond to your direct e-mail...I will to try to record the meeting...I know you have to rsvp and then they say space is limited...(that in and of itself speaks volumes)...every "owner" that wants to attend should have the RIGHT to do so...like I said earlier...I'm trying to find an attorney to attend with me...any thoughts from anyone...please let me know...the meeting is in San Franscio...there's got to me some great attorneys in the the area that would go if I paid for their time...Help Me, folks...let's not take this lying down and just give in and give up...DRI is banking on the idea that we can't rally together...that we are too spread out and can't get organized...the only hope we have is getting a group together and an attorney to represent us or at least give us legal advice...

 

[dougp26364]

I received your e-mail and tried to respond and somehow lost it...could you e-mail me again so I can respond to your direct e-mail...I will to try to record the meeting...I know you have to rsvp and then they say space is limited...(that in and of itself speaks volumes)...every "owner" that wants to attend should have the RIGHT to do so...like I said earlier...I'm trying to find an attorney to attend with me...any thoughts from anyone...please let me know...the meeting is in San Franscio...there's got to me some great attorneys in the the area that would go if I paid for their time...Help Me, folks...let's not take this lying down and just give in and give up...DRI is banking on the idea that we can't rally together...that we are too spread out and can't get organized...the only hope we have is getting a group together and an attorney to represent us or at least give us legal advice...

I'm sure you can find someone to take you money but, most attorny's probably understand the futility of what you want. Not that I don't understand your frustration but, from what I see with my unprofessional eye is, your case doesn't have merit. Your shooting the messenger and those responsible have already been absolved through bankruptcy or time. I fear your throwing good money after bad but, it is your money to throw.

I suppose if nothing else, it might be worth your money to find out from a professional if you have a case or not. So, if you're told you have no case, have you thought about what you intend to do at that point?

 

[Rhinestone Redneck]

I'm sure you can find someone to take you money but, most attorny's probably understand the futility of what you want. Not that I don't understand your frustration but, from what I see with my unprofessional eye is, your case doesn't have merit. Your shooting the messenger and those responsible have already been absolved through bankruptcy or time. I fear your throwing good money after bad but, it is your money to throw.

I suppose if nothing else, it might be worth your money to find out from a professional if you have a case or not. So, if you're told you have no case, have you thought about what you intend to do at that point?

Hi, Doug...I understand what you are saying...there is just something about this particular situation that feels like a "shake down"...it just doesn't feel legitimate and just...like you said I want to find our from a professional what "their" thoughts are...

For instance...I've been unable to rsvp to the meeting in San Fransico on the 20th...and then the statement basically threatens non-payment with small claims court, interest, liens...reports to credit...and then you can't even "hand back" your ownership...seems like a con to me...

and just so you know...I won't handing over any money to any attorney that can't indicate to me why "we'd" have a case...to either not pay the assestment or why I would be able to give my "ownership" back without any ramifications...I'm fine with just walking away and never having to deal with a time share again as long as I live...

 

[bogey21]

As an outsider looking in my concern would be will the Management Company be able to collect enough money in a timely manner to fix what needs to be fixed. If I'm an owner, I don't want to put up my $$$ only to find out that it will take years. collection agencies, lawsuits, etc to collect what needs to be collected.

George

 

[AKE]

So if DRI doesn't want the units back (even if the special assessment is paid), then what does this tell you about the demand for the resort, either as a purchaser or renter (i.e. if there was a demand for this resort then DRI could rent out the units they took back until them managed to resell them)? What happens if only half the owners pay the special assessment? Will the resort fold? Will the owners that paid be hit with another special assessment to cover the assessments of those that did not pay? Who would buy into this resort (even if the unit was given to them as free) based on all these unknown? What are the repercussions (outside of a bad credit score) for those that cant afford to pay or dont want to pay until they see what is happening overall with the special assessment?

 

[dougp26364]

Hi, Doug...I understand what you are saying...there is just something about this particular situation that feels like a "shake down"...it just doesn't feel legitimate and just...like you said I want to find our from a professional what "their" thoughts are...

For instance...I've been unable to rsvp to the meeting in San Fransico on the 20th...and then the statement basically threatens non-payment with small claims court, interest, liens...reports to credit...and then you can't even "hand back" your ownership...seems like a con to me...

and just so you know...I won't handing over any money to any attorney that can't indicate to me why "we'd" have a case...to either not pay the assestment or why I would be able to give my "ownership" back without any ramifications...I'm fine with just walking away and never having to deal with a time share again as long as I live...

You're already making public threats to lawyer up. I doubt they'll be interested in talking with you. Trust me when I say it's not hard for someone to learn who you are. I've been found more than a couple of times and DRI does read these forums.

Of everything that's happened, the one thing I'm not happy with is the short notice on the amount owed. 10 weeks is very short notice for most owners to come up with the SA and MF's. Then to be told pay up or else, yea, I can see where there won't sit well.

But I think you need to step back and look at the situation. DRI has been the mamagement for maybe 3 years. Previous management is no longer in existance. The original builder can't be forced to pay due to the length of time (over 10 years). DRI began managing the resort past the point where the original builder could have been held responsible. This is not something that could be claimed on any homeowers or property insurance. DRI will have valid bills/costs that can be shown for the cost of the work.

I understand getting hit with this bill is like getting hit with a hammer between the eyes. I can understand being upset that there wasn't more warning as to the extent or the amount that would be required so owners could plan. I don't understand wanting to file a lawsuit where there seems to be no grounds, just because you're upset at the stance DRI is taking on payment of the SA. It would be better to negotiate vs threaten. Threats are often met with silance from any management company.

 

[dougp26364]

As an outsider looking in my concern would be will the Management Company be able to collect enough money in a timely manner to fix what needs to be fixed. If I'm an owner, I don't want to put up my $$$ only to find out that it will take years. collection agencies, lawsuits, etc to collect what needs to be collected.

If the Hawaiian trust owns 40% of the inventory, that leaves 60% as deeded week owners. Assumning that the trust will pay it's share of the SA, that would mean at a 50% bed debt rate for deeded week owners, a 30% default of the total interval ownerships.

DRI has apparently stated they were accounting for defaults in their figures. I would not doubt that they have accounted for a 20 to 30% default rate. It would be interesting to know the percentage they've figured will default but, I doubt we'll ever know what that is.

None of my figures are based on facts. Only from what I recall reading on these forums and, my memory is sometimes faulty at best.

I do know that our ownerships at Polo Towers have rather scary bad debt numbers calculated into our yearly MF's. 2012 is lower than 2011 but, it's still a scary high number compared to what other management companies we own through have calculated. Our MF's remained flat for one DRI timeshare and have only gone up 4.9% for the other. I'm guessing there weren't as many defaults as was planned for, allowing for a surplus that has perhaps offset other costs and resulted in lower increases for 2012.

 

[Carolinian]

There was a post on a European board about DRI taking deedbacks, so I posted a link on TimeshareForums.com in a thread on the Poipu mess

http://www.timesharetalk.co.uk/index.php?topic=15876.msg47892

In that thread, it was said that DRI was now taking weeks back, but someone at TimeshareForums tried that with Poipu and it was refused.

So if DRI doesn't want the units back (even if the special assessment is paid), then what does this tell you about the demand for the resort, either as a purchaser or renter (i.e. if there was a demand for this resort then DRI could rent out the units they took back until them managed to resell them)? What happens if only half the owners pay the special assessment? Will the resort fold? Will the owners that paid be hit with another special assessment to cover the assessments of those that did not pay? Who would buy into this resort (even if the unit was given to them as free) based on all these unknown? What are the repercussions (outside of a bad credit score) for those that cant afford to pay or dont want to pay until they see what is happening overall with the special assessment?

 

[Carolinian]

Several questions about this resort:

1) When does DRI's management contract come up for renewal?

2) How many total weeks are there at the resort, and how many of those does DRI control? (I use the word control because DRI's weeks are likely all in trusts that they then vote)

3) How many of Point at Poipu's HOA board seats are DRI nominees? All of them?

 

[richardm]

I've received several emails from Poipu owners asking for advice or information about what occurs during the foreclosure process in Hawaii, and asking whether any lien or judgement could be tied to other property.

In each case, I've simply recommended they contact a real estate attorney in Hawaii to request a free consultation. This link contains quite a few contracts:

http://lawyers.findlaw.com/lawyer/firm/Real-Estate-Law/Honolulu/Hawaii

Does anyone have specific knowledge about the foreclosure process in Hawaii that might help?

 

[Carolinian]

Before going to an attorney, and of course you would need a Hawaii attorney, there is something else you should do on your own. The HOA is a non-profit corporation, and under corporate law as a member of that non-profit corporation, you have a right to inspect and copy most corporate records. The concerned owners need to get one of their number, preferably someone with accounting or legal experience to go to the office and do exactly that. You may find enough information, that you don't need a lawyer, but more likely you will have enough that you really don't know what you have and thus need a lawyer to go over it. You may find the smoking gun. Any lawyer who is going to give competent advise on this matter is going to need that research, and it will be a whole lot cheaper for concerned owners to do the spade work themselves than to pay the hourly rate a Hawaii lawyer would charge to do it himself.

One of the things that state law allows you to inspect and copy is the list of members with addresses, a key item if you are going to try to gin up an effort to overthrow DRI control of the board. On another timeshare board, it has been posted that DRI is refusing to comply with state law on this matter, a significant sign that there is a rogue board or rogue management involved here. So far there is no sign that they are refusing to comply with state law for records other than the membership list. The reason to try to withhold membership lists is very simple. It is all about control, and they know that being able to get a message out to the overall membership is absolutely critical to any challenge to their own control, and they want to preempt that.

The key thing here is - DO YOUR RESEARCH. There may be statute of limitation problems as to going against the oriignal builder, but there is reference to later repairs. Is there a valid claim against the contractor who did the repairs? What about a products liability claim against the siding manufacturer? Has inaction by the board caused the cost of repairs to go up while they stonewalled the info to the membership? The board itself and management may have liability. What about the previous developer? In the lawsuit against Fairfield (now Wyndham) over Bluebeards Castle resort in St. THomas, USVI, the plaintiffs were able to go after Fairfield for issues involving the previous management from whom they had taken over the resort. Once you have the research done, take it to a competent professional in Hawaii to evaluate all theories on which owners might proceed. The DRI-controlled board claims there are no valid causes of action against anyone. One thing you need to look for in the records is whether they got a detailed opiinion on that from a competent Hawaii attorney. There should be a written opinion or report on that. Of course, that opiniion is not likely to address any liability the board itself and management may have. If you find a thorough analysis by a competent Hawaii attorney who evaluates all potential claims and give solid reasons for not pursuing them, like statute of limitations, insolvent defendant, etc. then at least you will know the board did due diligence on those issues and at least they will be off the table and you can limit your conversation with your own Hawaii attorney to a narrower range of issues, and thus save some fees.

Hi, Doug...I understand what you are saying...there is just something about this particular situation that feels like a "shake down"...it just doesn't feel legitimate and just...like you said I want to find our from a professional what "their" thoughts are...

For instance...I've been unable to rsvp to the meeting in San Fransico on the 20th...and then the statement basically threatens non-payment with small claims court, interest, liens...reports to credit...and then you can't even "hand back" your ownership...seems like a con to me...

and just so you know...I won't handing over any money to any attorney that can't indicate to me why "we'd" have a case...to either not pay the assestment or why I would be able to give my "ownership" back without any ramifications...I'm fine with just walking away and never having to deal with a time share again as long as I live...

 

[Carolinian]

The US Constitution requires states to give full faith and credit to judgments from other states. Generally the procedure would be to get the Hawaii court to properly authicate a copy of the judgment and then Poipu would send it to an attorney in the home county of the member who would then file a lawsuit to make the Hawaii judgment a judgment of the court in the members home county, which is generally a slam dunk. Once recorded as a local judgment, it can then be enforced under the same procedures as any other judgment of your own court.

Rather than a foreclosure, given the amount involved, the resort could just seek a money judgment for the amount owed. Or it could foreclose, bid a dollar at the foreclosure sale, or a penny, and then get a deficiency judgment for the balance.

Given the amounts involved, I suspect just waking away with bad credit may not be an option. I also do not know if Hawaii allows attorneys fees to be included under any of these scenarios, but I suspect court costs is likely a given including filing fees, service fees, and perhaps cost of publishing a foreclosure notice.

I've received several emails from Poipu owners asking for advice or information about what occurs during the foreclosure process in Hawaii, and asking whether any lien or judgement could be tied to other property.

In each case, I've simply recommended they contact a real estate attorney in Hawaii to request a free consultation. This link contains quite a few contracts:

http://lawyers.findlaw.com/lawyer/firm/Real-Estate-Law/Honolulu/Hawaii

Does anyone have specific knowledge about the foreclosure process in Hawaii that might help?

 

[Kauaigrl00]

Has anyone thought of contacting the media to be at these meetings?

I can almost assure you they will not allow you to tape it. We were at the P @P a few years ago when owners tried to have meetings and DRI would not allow taping.

I see no real solution to this. This board is great for sounding out to all us owners. Guess we are stuck. Just scares me if something happens to us and our children inherit this mess.

 

[Carolinian]

Trying to get the media there would help put some heat on DRI.

A post on Timesharetalk.co.uk indicated that the BBC was working up a report on DRI for its Ripoff Britain program. The BBC has reporters in the US, and this might give them some interesting depth. It would be worth a try to see if the editors of that program were interested.

As to preventing taping an annual HOA meeting, I would challenge that. You are a member of the corporation, and you should demand whoever is claiming you cannot tape to show you their authority do so that in the bylaws of the association. Don't take their simple word on it, as for many resorts, there would be no such authority for any officer to tell a member of the corporation they cannot tape. With cell phones, these days, it is also easy to do without being so obvious.

Has anyone thought of contacting the media to be at these meetings?

I can almost assure you they will not allow you to tape it. We were at the P @P a few years ago when owners tried to have meetings and DRI would not allow taping.

I see no real solution to this. This board is great for sounding out to all us owners. Guess we are stuck. Just scares me if something happens to us and our children inherit this mess.

 

[Bunk]

I read these posts as someone who has no involvement with the Diamond timeshares. As a result, I might be a little more objective than if I had to come up with the special assessments. I am a little confused by some of the claims against Diamond. As I understand it, the property belongs to the HOA; not Diamond. So in terms of Diamond's exposure, other than the fact that Diamond would owe its percentage of the special assessment on any units at Poipu it owns, exactly what legal or moral liability are you suggesting Diamond has or should have. What evidence does anyone have to suggest that Diamond knew or should have known about this problem before they got involved. Why would they have gotten involved if they knew about this problem.

If I were a unit owner here, I would look at 4 issues:

1. an analysis as to whether the property could be sold and what would be the carrying costs until such a sale. That might be a good solution to some unit owners, at least those who do not have any loans against the unit, on the grounds that they are not throwing good money after bad.;

2. An analysis as to whether the proposed construction will solve this problem and how much more construction costs there are likely to be for the next 10 years once the construction is complete.

3. whether the special assessment could be held in escrow and not be applied until a certain percentage of the unit owners pay it. Let's say that agreed to percentage is 66%. If 2/3 of the unit owners pay the assessment, than the repairs will begin. If they don't get 2/3 paying it, then the money should be returned to those who paid and the hoa should consider a liquidation or a sale. If Diamond owns any units, it should be revealed whether they will pay their share of the assessment in full.

4. Whether there are any claims against the professionals involved in the construction and development of the project, i.e., the builders, engineers, architects. I assume that the original developer had no professional liability insurance and has no assets. Sometimes claims can be made against builders that appear on the surface to be barred by the Statute of Limitations and that may be covered by liability insurance. I assume that the HOA and Diamond have the same interest as the unit owners in learning whether there are possible claims in this case.

 

[Carolinian]

DRI manages the resort and therefore has potential liability for nonfeasance, misfeasance, or malfeasance in its management of the resort. DRI also controls the Board of Directors and those directors have potential liability if they failed to fullfill their fiduciary duties to the members. Of course that would be individual liability rather than corporate of DRI as to the directors, and they almost certainly have a large directors liability insurance policy. Even small resorts tend to carry those in the 7 figure policy limits, so I would imagine that for a resort this size it would be well into 8 figures.

Any liability of DRI, in addition to what its trusts owe on their portion of the whole, would be based on its actions in management. The potential directors liability would not technically be DRI liability.

When a secondary developer buys a resort, they have a responsibility to do due diligence. There are times when a secondary developer may be liable for actions or inactions of a preceding developer, as Fairfield (now Wyndham) found out in the lawsuit over Bluebeards Castle timeshare in St. Thomas, USVI. Therefore, they fail to do due diligence at their own peril.

I read these posts as someone who has no involvement with the Diamond timeshares. As a result, I might be a little more objective than if I had to come up with the special assessments. I am a little confused by some of the claims against Diamond. As I understand it, the property belongs to the HOA; not Diamond. So in terms of Diamond's exposure, other than the fact that Diamond would owe its percentage of the special assessment on any units at Poipu it owns, exactly what legal or moral liability are you suggesting Diamond has or should have. What evidence does anyone have to suggest that Diamond knew or should have known about this problem before they got involved. Why would they have gotten involved if they knew about this problem.

.

 

[Kauai Kid]

I bought an every year 2 bedroom at P at P last year and just found out about the $5800 assessment. Lady was very nice explaining it all. Very disappointed, but plan to pay and enjoy the resort. We experienced the same thing in 1992 when we bought at the Cliffs Club on the secondary market. Shortly thereafter incurred major Special Assessments similar to this. I guess that is the breaks of life. We have lots of wins and occasional losses and big disappointments. I too feel your pain!

How big was the special assessment at the Cliffs Club?

Sterling

 

[AKE]

How can DRI control the Board of Directors (I think this is the same as the HOA?)? Isn't membershgip on the board proportional to ownership? Was Poipu not a traditional weeks ownership program where most of the weeks, I would guess, sold so that Sunterra and now DRI would have minority ownership?

 

[timeos2]

How can DRI control the Board of Directors (I think this is the same as the HOA?)? Isn't membershgip on the board proportional to ownership? Was Poipu not a traditional weeks ownership program where most of the weeks, I would guess, sold so that Sunterra and now DRI would have minority ownership?

So.many owners signed up for points by placing their ownership into one of the DRI trusts which then hold the voting rights (no longer the individual owners ) that the massive vote of the trust - technically & legally independent but actually under DRI control - can easily out vote the often non-reponsive 60% block of independent owners still holding votes.

 

[riothng]

Board Meeting Minutes

As an owner looking for more information I find the following fact very interesting and disheartening: The Board has not published any meeting minutes since January 17, 2011. We need owners to ask a lot of questions at the upcoming meetings this week if anyone is going. There are a lot of them already stated above by many responders.

Here is the link to the 1/17/2011 minutes:
https://www.diamondresorts.com/hoa/20110512/2011_1_17_PPR-AOAOminFNL.pdf

In the minutes there are statements reflected the board moving into Executive session and also reviewing the three hour presentation by BET&R in regard to the water intrusion. However no information has been provided since then.

Here were the four motions they made:

After the Executive Session, Mr. Goeckel said the following motions were needed, all to include confidentiality clauses.

MOTION: Director Anderson made a motion to retain Cumming Corporation to act as project manager. Director Dean seconded, there was no further discussion and the motion carried unanimously

MOTION: Director Anderson made a motion to retain BET&R to finalize the construction documents, the contractor bid process and selection. Director Fultz seconded, there was no further discussion and the motion carried unanimously

MOTION: Director Anderson made a motion to retain a structural engineer to address the immediate life safety concerns and finalize the approach. Director Fultz seconded and asked if there was a cost estimate. Mr. Goeckel said Management would come back to the Board when there were proposals. There was no further discussion and the motion carried unanimously

MOTION: Director Anderson made a motion to retain local architect Colin Shimokawa as the representative to interface with local building and planning. Director Dean seconded, there was no further discussion and the motion carried unanimously.

So please ask as many questions as possible if you are going. Here are some that must be asked:

Questions for information:

1. What are the alternatives that have been considered for the repair of the issue?
a. Why aren’t the owners being asked for confirmation of the best options for the property?
2. What information regarding the board’s meetings content is available to owners?
a. There have been no updates since January 17, 2011?
3. How many other competitive bids have been sought for handling the repairs?
a. What were the other estimated dollar amounts? (I feel like this is similar to situations of a singular bid from Halliburton.)
4. Why isn’t this damage covered by insurance?
5. How much are the buildings worth and how much is the rest of the property worth?
a. What is this building and property value/assessment based on?
6. Why has Diamond Resorts stopped the timeshare surrender option? I am directly requesting resumption of the surrender option.