Carolinian
TUG Member
Having guided the restoration of an Outer Banks timeshare as HOA president after Hurricane Isabel, I have great sympathy for what HOA boards in sections of Florida are going through. We had a member-controlled hands-on board with our own hired management rather than a management company.
The statutes governing timeshares are mostly similar from state to state as almost every state has adopted the uniform acts on the subject that were promulgated by the Uniform Law Commission. Some states tweaked them a little, but most adopted them verbatim. There are two different sets of uniform laws, and which one applies depends on when the timeshare was organized.
If the level of damage passes a certain degree, it can trigger a required vote on whether to rebuild or cash out, and the mechanics of that vote will vary depending on which of the two sets of statutes the resort is under. Some management companies or chains may try to deny that vote to members, but if the level of damage is sufficient, members should speak up and demand it. Attorneys with the Florida Real Estate Commission would be a good place to turn for advice on what members can do in their resort's particular situation.
Rebuilding resorts may require special assessments and they could be substantial. After Isabel, my resort managed to rebuild without a special assessment as did the timeshare resort beside us, which was also self managed. Board members of both resorts spent a lot of effort in accomplishing that. Two resorts closed due to mismanagement of the rebuilding by the same management company (a local one). As I recall Golden Sands had the highest special assessment, which was in four figures but I do not recall the exact amount. My resort had paid extra on our insurance for several riders that really paid off for us on the rebuilding.
Since Isabel, the insurance companies have gotten much more difficult to deal with, and I suspect resorts in Florida that rebuild without any special assessment will be rare. Anyone who owns at a damaged resort should expect a special assessment, and perhaps a large one.
One thing to consider for members of damaged resorts is how much of a special assessment are they willing to pay to restore the resort. If it is too high, voting to sell the resort and distribute the proceeds and the insurance may be the best result. If it can be done at a level members are comfortable with, then there should be support for rebuilding. If the resort is sold, in a traditional timeshare each week is usually paid off at the same amount, whether it is a prime week or an offseason week, but the restrictive covenants may spell out a more specific plan. Timeshare owners with damaged resorts need to take a look at the condo docs to look at applicable provisions specific to the resort. The portion of the proceeds attributable to HOA-owned weeks generally has to be given to charity.
Timeshare chains and management companies have their bread buttered on rebuilding and may push that hard. Members need to read their condo docs and they need to get info on which uniform statute applies to their resort. They need to read that, too.
I like to see resorts rebuild where it is practical, but in some cases the cost may not justify it. Building costs these days may outstrip insurance that the HOA thought adequate when it was bought.
Most timeshare owners are probably not in a position to hire a lawyer to look into these issues, but in many states, the state Real Estate Commission, the agency which governs timeshare laws, will answer some of the basic questions. That is a good place to start. Your timeshare deed probably makes reference to the book and page number of the timeshare declaration of covenants, and with that information, in most counties, you can look that up online with the Register of Deeds and make yourself a copy.
The statutes governing timeshares are mostly similar from state to state as almost every state has adopted the uniform acts on the subject that were promulgated by the Uniform Law Commission. Some states tweaked them a little, but most adopted them verbatim. There are two different sets of uniform laws, and which one applies depends on when the timeshare was organized.
If the level of damage passes a certain degree, it can trigger a required vote on whether to rebuild or cash out, and the mechanics of that vote will vary depending on which of the two sets of statutes the resort is under. Some management companies or chains may try to deny that vote to members, but if the level of damage is sufficient, members should speak up and demand it. Attorneys with the Florida Real Estate Commission would be a good place to turn for advice on what members can do in their resort's particular situation.
Rebuilding resorts may require special assessments and they could be substantial. After Isabel, my resort managed to rebuild without a special assessment as did the timeshare resort beside us, which was also self managed. Board members of both resorts spent a lot of effort in accomplishing that. Two resorts closed due to mismanagement of the rebuilding by the same management company (a local one). As I recall Golden Sands had the highest special assessment, which was in four figures but I do not recall the exact amount. My resort had paid extra on our insurance for several riders that really paid off for us on the rebuilding.
Since Isabel, the insurance companies have gotten much more difficult to deal with, and I suspect resorts in Florida that rebuild without any special assessment will be rare. Anyone who owns at a damaged resort should expect a special assessment, and perhaps a large one.
One thing to consider for members of damaged resorts is how much of a special assessment are they willing to pay to restore the resort. If it is too high, voting to sell the resort and distribute the proceeds and the insurance may be the best result. If it can be done at a level members are comfortable with, then there should be support for rebuilding. If the resort is sold, in a traditional timeshare each week is usually paid off at the same amount, whether it is a prime week or an offseason week, but the restrictive covenants may spell out a more specific plan. Timeshare owners with damaged resorts need to take a look at the condo docs to look at applicable provisions specific to the resort. The portion of the proceeds attributable to HOA-owned weeks generally has to be given to charity.
Timeshare chains and management companies have their bread buttered on rebuilding and may push that hard. Members need to read their condo docs and they need to get info on which uniform statute applies to their resort. They need to read that, too.
I like to see resorts rebuild where it is practical, but in some cases the cost may not justify it. Building costs these days may outstrip insurance that the HOA thought adequate when it was bought.
Most timeshare owners are probably not in a position to hire a lawyer to look into these issues, but in many states, the state Real Estate Commission, the agency which governs timeshare laws, will answer some of the basic questions. That is a good place to start. Your timeshare deed probably makes reference to the book and page number of the timeshare declaration of covenants, and with that information, in most counties, you can look that up online with the Register of Deeds and make yourself a copy.