Special assessments

[billymach4]

I feel your pain. Now this situation pales in comparison to other Resorts.

 

[Mike S]

Last budget they had $180,00 in deficit reduction (non-paying maintenance intervals) 2024 budget shows this doubles to $360,00. With a little over 1 million in maintenance fees billed that's 33% of weeks not paying maintenance fees.
Why not foreclose and sell these weeks off to get new owners to pay the fees? It's better to even give them away with the understanding to buyers there will be a large special assessment. This way its not just the current owners that have paid their fees paying the brunt of the repairs.
Would you buy a week for peanuts with a 3k special assessment for a fully renovated 2 bd 2 ba 1600 sq. ft. unit with boat docks on the bay and across the street from the gulf?
Hitting current owners with an even larger special assessment will only snowball walkaways.
If you look at the budget the repairs look overpriced. There's 15 units in the complex!
At the very least they should allow us to elect a new board to review these figures before the current board tries to pass this special assessment.

 

[Mike S]

Update;
Today was a zoom board meeting. 2 board members resigned, and 2 new board members were appointed by the surviving board member and president. One was a woman who owned 17 weeks. The other was a representative from a company named Lemon Juice. It was revealed that the property manager Cunnigham had the right to purchase association owned weeks which it sold to Lemon Juice.
Lemon Juice owns 200 intervals and is buying 300 more. There are 1530 intervals (odd or even weeks is one interval whole week is two intervals.) After discussing lemon juice' roll they immediately went to special assessment and 3 board members voted for a $1500 pe interval or $3,000 per week special assessment to upgrade the place. Then the guy from Lemon Juice (Jeff) offers to buy anyone wanting to sell for $500 and he'd pay for title work. says he needs other board members permission to contact owners.
This stinks to high heaven. Smells like they're trying to take over building.

 

[boris-bear]

Update;
Today was a zoom board meeting. 2 board members resigned, and 2 new board members were appointed by the surviving board member and president. One was a woman who owned 17 weeks. The other was a representative from a company named Lemon Juice. It was revealed that the property manager Cunnigham had the right to purchase association owned weeks which it sold to Lemon Juice.
Lemon Juice owns 200 intervals and is buying 300 more. There are 1530 intervals (odd or even weeks is one interval whole week is two intervals.) After discussing lemon juice' roll they immediately went to special assessment and 3 board members voted for a $1500 pe interval or $3,000 per week special assessment to upgrade the place. Then the guy from Lemon Juice (Jeff) offers to buy anyone wanting to sell for $500 and he'd pay for title work. says he needs other board members permission to contact owners.
This stinks to high heaven. Smells like they're trying to take over building.

In retrospect the plan was here in plain sight all along since last summer:

Lemonjuice Solutions Announces New Strategic Relationship

Lemonjuice Solutions, a well-known leader in comprehensive timeshare resort management and real estate solutions, and Cunningham Family of Companies, a leading, full-service Florida property management firm, are pleased to announce a strategic relationship.

lemonjuicesolutions.com

Of course this is a company website so who knows how much to actually believe. I can’t believe I didn’t find this “article” before..

We liked LBC but we had decided to reduce our timeshare portfolio anyway and the moment things started smelling funny here we looked for the first viable way out.

I took the previous deal and did the deedback last month for $295. We didn’t pay much for the place to begin with, and I didn’t want to stick around for the rest. Then again, the deedback was filed and recorded, although I have yet to get any acknowledgment beyond that, so who knows? Presumably I have sufficent paper trail.

 

[dioxide45]

Lomonjuice is a company that helps boards and HOAs to navigate the process of monetizing the resort or shutting down and transitioning to full residential ownership. You can pay the Special Assessment and then take any residutals when they convert and sell as whole ownership or get out now for $500.

 

[moonstone]

The resort pictured on that Lemonjuice website, as linked by boris-bear above, is our home resort #0890, The Beach Club at St. Augustine Beach, also a Cunningham property. Thankfully we dont have nearly the problems as Longboat Key. I feel sorry for those owners.


~Diane

 

[SusanRN]

Lemonjuice has made a lot of acquisitions in Ocean City, MD. People who have dealt with them have felt they were fair, so they have a good reputation among O.C. timeshare owners. They definitely have an eye on eventual conversion to whole-ownership (and have deep pockets).

 

[dioxide45]

Lemonjuice has made a lot of acquisitions in Ocean City, MD. People who have dealt with them have felt they were fair, so they have a good reputation among O.C. timeshare owners. They definitely have an eye on eventual conversion to whole-ownership (and have deep pockets).

It seems they can bring a lot of resources to the table and I am sure they have investors putting up much of the cash and those investors want return on the investment. Thus the push to convert to whole ownership. Though I do believe they will also help an HOA become more solvent with renting or selling unsold, reaquired or defaulted ownerships. I am surprised that more companies haven't come along that offer similar services.

 

[Mike S]

Lomonjuice is a company that helps boards and HOAs to navigate the process of monetizing the resort or shutting down and transitioning to full residential ownership. You can pay the Special Assessment and then take any residutals when they convert and sell as whole ownership or get out now for $500.

And helps themselves. They’re paying $1,000 a week. $52,000 to control a unit or condo.
With 250 weeks that’s 5 condos out of 15.
Condos in the area easily go for 800k or better.
Owners were never offered to buy intervals for $500.
So a property manager can neglect a place have delinquencies jump then bring in a “savior” like lemonjuce? Put their guy on the board. Sell them rights to buy weeks. What’s next they buy resort on the cheap then flip it?
Nice play.

 

[dioxide45]

And helps themselves. They’re paying $1,000 a week. $52,000 to control a unit or condo.
With 250 weeks that’s 5 condos out of 15.
Condos in the area easily go for 800k or better.
Owners were never offered to buy intervals for $500.
So a property manager can neglect a place have delinquencies jump then bring in a “savior” like lemonjuce? Put their guy on the board. Sell them rights to buy weeks. What’s next they buy resort on the cheap then flip it?
Nice play.

They are taking a big risk and are the ones putting up the capital. If you can find someone to take your week for $800,000/52, then more power to you. Right now it is about supply and demand. There are a lot of owners wanting out and only one real buyer willing to take them.

YOu also have the option of staying in, continue paying the annual fees and come out on the back end with any residuals that may be paid out when the property or units are sold. The company also has to pay the annual fees levied on the weeks that they own. So it isn't zero risk. THey are also putting capital in to fix up the units.

 

[Mike S]

They are taking a big risk and are the ones putting up the capital. If you can find someone to take your week for $800,000/52, then more power to you. Right now it is about supply and demand. There are a lot of owners wanting out and only one real buyer willing to take them.

YOu also have the option of staying in, continue paying the annual fees and come out on the back end with any residuals that may be paid out when the property or units are sold. The company also has to pay the annual fees levied on the weeks that they own. So it isn't zero risk. THey are also putting capital in to fix up the units.

You seem to have an intimate knowledge of lemon juice and longboat bay club. How is that?

 

[dioxide45]

You seem to have an intimate knowledge of lemon juice and longboat bay club. How is that?

I don't know anything specific about Longboat Bay Club, but have seen situations where Lemonjuice came in to assist other HOAs. I've also watched a couple of videos where they interviewed the leadership of Lemonjuice. I just have an understanding of what their business model is.

 

[Mike S]

If this was something like a hurricane or building infrastructure problem I could understand. But maintenance was poor. Management company is to blame not the owners. The owners walked because the place needed a lot of repairs and didn’t get them. Now to sell control to a company whose goal is to sell the property doesn’t help owners.
One entity will control the vote in the sale not owners.

 

[dioxide45]

If this was something like a hurricane or building infrastructure problem I could understand. But maintenance was poor. Management company is to blame not the owners. The owners walked because the place needed a lot of repairs and didn’t get them. Now to sell control to a company whose goal is to sell the property doesn’t help owners.
One entity will control the vote in the sale not owners.

The owners control the vote for HOA board members. If the resort wasn't being managed properly, that is on the owners for not turning over ineffective board members. Selling the property might be the best thing for the owners. Owners may receive a residual payment. While it may not be for what they paid, the alternative is to continue paying on a sinking ship.

 

[Monkeyboy]

That isn't how Florida corruption works -- the books will reconcile. But everyone involved charges a dollar to do a job that should cost a dime. They do a dime's worth of work and pocket the rest. And anyone who oversees them is on the take.

The entire government in my home town was occasionally rounded up and incarcerated for this sort of thing. It's called a "Bubba Bust."

California had spent billions building a bullet train since 2008. I am sure those books reconcile to. They don’t go to jail though.

 

[amycurl]

@Mike S, if you do a search on Lemonjuice on TUG, you’ll find numerous threads. @dioxide45, like me, is just paying attention. It seems like, in most cases, Lemonjuice-led wind downs of legacy resorts tend to have positive outcomes for owners in the end. But trying to insinuate that Dioxide is somehow in on a scheme is laughable. You clearly don’t read other parts of TUG much.


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[Mike S]

@Mike S, if you do a search on Lemonjuice on TUG, you’ll find numerous threads. @dioxide45, like me, is just paying attention. It seems like, in most cases, Lemonjuice-led wind downs of legacy resorts tend to have positive outcomes for owners in the end. But trying to insinuate that Dioxide is somehow in on a scheme is laughable. You clearly don’t read other parts of TUG much.


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I didn’t insinuate anything. Just asked how he knew. Hope you’re right about LJ.