Special assessments

[tnecniv]

some ts resorts are being sold as whole ownership an that's good just a. deed back

 

[bocamike]

Wow ... messed up situation. Board of directors lost interest? maybe no supprt from owners?

 

[Armada]

$60k for accounting for 15 units? That seems over the top.

 

[Mike S]

First email titled it annual meeting, second titled it board meeting. Still no board members at an annual?
Correct manager can’t approve budget but board can. Seems that’s all they do is approve budget. And yes 60k for accounting does seem high plus 6k for audit

 

[Kozman]

What is the management company?

 

[bocamike]

Tail wagging the dog? Who's in control?

 

[theo]

The property manager can’t approve a maintenance fee increase.

…OR a special assessment. To attempt either one is quite simply not within the legal authority or purview of any property manager, plainly and simply stated. A timeshare property manager is essentially an employee of the Board / HoA / ownership, working under (finite) contract, with no authority whatsoever beyond managing the property.

This situation, if accurately portrayed, is certainly one of the strangest scenarios that I have ever heard of or encountered here on Planet Timeshare.

 

[Mike S]

How’s this to boot? After I left meeting a little early another owner said manager stated they own 20% of weeks. Talk about a conflict!
Property manager is Cunningham

 

[Volkyro]

How’s this to boot? After I left meeting a little early another owner said manager stated they own 20% of weeks. Talk about a conflict!
Property manager is Cunningham

Did you get a feeling on whether others intend to pay?

 

[bocamike]

So how much was the 2024 maintenance fee? and special assessment?

 

[Mike S]

Maintenance fees going from 1200 to 1600
Special assessment supposedly is $3,000 per week pending board approval.
Board has changed rules for surrendering your week. It will cost $295 to give up your week. Many owners requested this.
Proposed maintenance fees don’t show any increase in reserve funding, increase going to increased insurance and maintenance costs.

 

[SusanRN]

If management is seeking a $3,000 SA, I wonder if the true goal is to force out most owners, foreclose, then sell the property as a whole for profit? Just throwing that out there....

 

[lbcownerfornow]

Maintenance fees going from 1200 to 1600
Special assessment supposedly is $3,000 per week pending board approval.
Board has changed rules for surrendering your week. It will cost $295 to give up your week. Many owners requested this.
Proposed maintenance fees don’t show any increase in reserve funding, increase going to increased insurance and maintenance costs.

If management is seeking a $3,000 SA, I wonder if the true goal is to force out most owners, foreclose, then sell the property as a whole for profit? Just throwing that out there....

Hi Mike S, we are also owners at Longboat Bay Club. (Biennial fixed week). The timeshare was inherited, and we aren't super familiar with how the TS world works and weren't the primary correspondent in the family so we weren't aware of the discussion or rumors regarding the special assessment. We love the place, the week, and felt that, at the cost of the maintenance fees, this resort was an example of why not all timeshares deserve the same bad reputation or negative connotation they seem to have in the US. We have been preparing to take over full ownership of the week from the rest of the family, but were dismayed by the fees jumping so much (in an off year for us to boot). Then this morning we received the message about the convenient "update" to the rules regarding "deeding back" and when we googled the problem we happened upon your thread.

This may not be the place to ask so anybody more familiar with this forum feel free to correct me but is there anything we can do as owners? I'm sure we could be better informed by reviewing correspondence from the rest of our family and we will do so ASAP but we didn't want to wait on an opportunity to commiserate with a fellow owner at the same resort.

I'm sure the numbers add up on paper but in terms of common sense it seems hard to believe that the financials could change this much in such a short period, barring the increase in insurance. My (very uninformed) initial instincts lined up well with SusanRN's thought.

 

[TheTimeTraveler]

Hi Mike S, we are also owners at Longboat Bay Club. (Biennial fixed week). The timeshare was inherited, and we aren't super familiar with how the TS world works and weren't the primary correspondent in the family so we weren't aware of the discussion or rumors regarding the special assessment. We love the place, the week, and felt that, at the cost of the maintenance fees, this resort was an example of why not all timeshares deserve the same bad reputation or negative connotation they seem to have in the US. We have been preparing to take over full ownership of the week from the rest of the family, but were dismayed by the fees jumping so much (in an off year for us to boot). Then this morning we received the message about the convenient "update" to the rules regarding "deeding back" and when we googled the problem we happened upon your thread.

This may not be the place to ask so anybody more familiar with this forum feel free to correct me but is there anything we can do as owners? I'm sure we could be better informed by reviewing correspondence from the rest of our family and we will do so ASAP but we didn't want to wait on an opportunity to commiserate with a fellow owner at the same resort.

I'm sure the numbers add up on paper but in terms of common sense it seems hard to believe that the financials could change this much in such a short period, barring the increase in insurance. My (very uninformed) initial instincts lined up well with SusanRN's thought.

I am not sure if Longboat Bay Club is taller than two stories, but if it is they need to get their building (and their maintenance reserves) into compliance with the new Florida law which goes into effect in January of 2025. This new law plus inflation is one of the major reasons that many Florida timeshare resorts are having special assessments at the current time.

Of course insurance is another issue but you can blame that on some of the recent bad hurricanes.....







.

 

[Mike S]

It's a shame. The units are huge and the area is very nice. My opinion is it was mismanaged with a terrible board of directors for quite a while. Reserves were misused. Now they increased maintenance fees to cover higher insurance costs and higher maintenance costs. The increase doesn't increase reserves so who's to say in a few years we're not in the same boat?
The special assessment seems very high. At 3k per week that's 156 k per unit. I'm not a contractor but since the kitchens and flooring in kitchen, dining room and hall have been renovated why so high? Can't blame any of this on hurricane Ian as Longboat was spared pretty much spared.
They need new furniture, updated bathrooms, new flooring in living room and bedrooms and new sliders and windows. That's not 156k. I guess some will be for common areas. We haven't been shown where the money will be spent. I also asked since so many units aren't paying fees we can't expect that 3k per week to come from those not paying. How does that work out?

 

[dhgi]

It's a shame. The units are huge and the area is very nice. My opinion is it was mismanaged with a terrible board of directors for quite a while. Reserves were misused. Now they increased maintenance fees to cover higher insurance costs and higher maintenance costs. The increase doesn't increase reserves so who's to say in a few years we're not in the same boat?
The special assessment seems very high. At 3k per week that's 156 k per unit. I'm not a contractor but since the kitchens and flooring in kitchen, dining room and hall have been renovated why so high? Can't blame any of this on hurricane Ian as Longboat was spared pretty much spared.
They need new furniture, updated bathrooms, new flooring in living room and bedrooms and new sliders and windows. That's not 156k. I guess some will be for common areas. We haven't been shown where the money will be spent. I also asked since so many units aren't paying fees we can't expect that 3k per week to come from those not paying. How does that work out?

Hi Mike,
I am a long time owner too(1985!). I have not received any more information from Cunningham since the maintenance fee invoice and the email about the buy back option. Have they actually sent the owners special assessment invoice? I certainly do not want it but want to know what is going on there. I would like to use the week I paid a fortune for this year before considering the buy back. I guess it is time to let it go which really does make me sad. Someone is going to make out great financially with this place but I sure do not plan on helping them finance their renovations.

 

[Mike S]

No special assessment yet. Supposedly they’ll be an explanation very soon.
What’s really amazing is you can’t get in touch with the board.
I’ve written letters, emailed the resort and phoned. Cunningham has to forward my request as the board has no way to contact them directly. They never respond!
Cunningham runs the entire show. The board does nothing but approve a budget once a year.
They should be replaced immediately.

 

[Mike S]

I may have been mistaken and the association not the property manager owns many weeks.
But here's a killer, there's 3 board members and not one of them own a week! Its in the board meeting minutes! Can't make it up.
Last board meeting only 1 of 3 attended and he left halfway through.
To answer Susan there is an owners section of the website with documents. There's also an application to run for the board if you're interested.

 

[rapmarks]

I may have been mistaken and the association not the property manager owns many weeks.
But here's a killer, there's 3 board members and not one of them own a week! Its in the board meeting minutes! Can't make it up.
Last board meeting only 1 of 3 attended and he left halfway through.
To answer Susan there is an owners section of the website with documents. There's also an application to run for the board if you're interested.

This is astonishing

 

[Sylvan]

If management is seeking a $3,000 SA, I wonder if the true goal is to force out most owners, foreclose, then sell the property as a whole for profit? Just throwing that out there....

 

[Sylvan]

I am an owner and believe that there could be something going on in the background that may take advantage of some owners. Prior to what was to be an AGM I asked the question about the possibility of shutting it down as a timeshare and selling the units off. (No response) They have already had I believe a number of timeshares which are in default and with the market value of a timeshare and the new costs the economic value as a timeshare is not there. I expect based a quick check that each condo unit would be worth in the $600k + range so each week would be worth at least $10k after selling expenses.
This week I received an email, which I expect all owners have received, it has two items which leaves me to believe that something is not right. The first is you can turn your unit back if current on fees for $295. The second was they show a possible special assessment which would be $3,165,000 or $4057 per week.
So not only are fees high but you may be faced with a $4057 assessment, that is assuming all weeks are owned by individuals. If and I say if, many are in the resorts name as being turned back, then your special assessment would be considerable higher since those weeks don't have money.
There is also the question what really is the market value of a timeshare week, based on what I see for sale maybe $2 to 3 thousand but if you take off a special assessment costs then nothing so why would they take them back?
This begs the question is the plan to close it as a timeshare and take the benefit of the building value?
As to some may still want it as a timeshare, would they if they receive a special assessment of say $6000 due to owners turn ins and they have the opportunity to get out of it by turning it back. In other words, I see this as the next move that will be made if they want to close it as a time share and get the building value out.
I believe the board NEEDS to send out to all owners the option of shutting it down as a timeshare and selling the units off because I think that is the plan right now and someone is planning on making a major benefit from it.

 

[Mike S]

Another thought. They say they want to stress rentals. Sure, Cunningham would get 30% commission on each rental. We fix the place up through a special assessment and they reap the rental commission income from the association owned weeks.
Did you see the proposal? 600k for sliding doors? 300k for windows? 115k for entry doors?
There’s 15 units!
This is a scam. Did they get multiple bids on the work?
The board should be replaced immediately.
The board members don’t own a week.
The state should get involved here.
Mike

 

[Sylvan]

There is something funny going on with Longboat Bay Club. An e-mail last week, that I expect all owners received, basically stated that you could turn your time share in if your dues were current and you paid $295 to transfer them in. The second part of the e-mail was a possible special assessment coming out ($3.1 million) which based on 15 units X 52 weeks would be just shy of a $4k each that is if every week pays.
As the resort has many not paying fees and now they are letting you out for a transfer fee the question is WHY?
I believe that there is group who want to close it down as a time share and sell the units off. I have looked at and would expect that each unit is worth at minimum $600k which means the resort would be worth $9 million + and if each week was owned the value of a week would be $11,500 less some fees.
I think this is a case of scaring owners off so they turn in their week after which who ever is behind this will push for a close down and reap a major windfall.
Personally, this is not a good timeshare, the reason is between the building and marina it is a valuable asset but with only 15 units the cost to operate is high. As an owner then your costs are high, yet you have limited usage and if you have it to trade it doesn't carry any special trading value.
I doubt that they will give you the email list of all owners without some type of legal play but if all owners actually were asked do they want to pay all these costs, which are ongoing, or close it down and take say $10k+ for their week, I believe most would sell out. If you still want a timeshare there are plenty for sale for considerably less than $10k without being faced with a special assessment. Please supply comments.

 

[Mike S]

 

[dioxide45]

There is something funny going on with Longboat Bay Club. An e-mail last week, that I expect all owners received, basically stated that you could turn your time share in if your dues were current and you paid $295 to transfer them in. The second part of the e-mail was a possible special assessment coming out ($3.1 million) which based on 15 units X 52 weeks would be just shy of a $4k each that is if every week pays.
As the resort has many not paying fees and now they are letting you out for a transfer fee the question is WHY?
I believe that there is group who want to close it down as a time share and sell the units off. I have looked at and would expect that each unit is worth at minimum $600k which means the resort would be worth $9 million + and if each week was owned the value of a week would be $11,500 less some fees.
I think this is a case of scaring owners off so they turn in their week after which who ever is behind this will push for a close down and reap a major windfall.
Personally, this is not a good timeshare, the reason is between the building and marina it is a valuable asset but with only 15 units the cost to operate is high. As an owner then your costs are high, yet you have limited usage and if you have it to trade it doesn't carry any special trading value.
I doubt that they will give you the email list of all owners without some type of legal play but if all owners actually were asked do they want to pay all these costs, which are ongoing, or close it down and take say $10k+ for their week, I believe most would sell out. If you still want a timeshare there are plenty for sale for considerably less than $10k without being faced with a special assessment. Please supply comments.

I think the "some fees" you mention are probably a lot more than you think. Probably close to 50% of the total value. First, they can't just sell the units as is to get $600K each. They probably need to invest considerable money to renovate each unit. Then there are legal costs associated with taking units out of the timeshare. They need to get all the owners to deedback their weeks. Some are probably passed away, some they probably can't find or need to pay someone to find so they can put them on notice to foreclose. There are significant costs involved. You can stick around to receive any residuals in the end.

I suspect the property has long neglected repairs and overall maintenance and upkeep. Everyone enjoyed years of low fees and low annual increases. The time has come to pay the piper.