Joyce DabbsJuly 13, 2022
For Immediate Release
From: Bill Shaw, Treasurer
Dear Owner,
We have the final number for our insurance assessment. As you know, we’ve separated the cost of our major insurance policy from our relatively stable HOA fees. We did this because insurance cost is so volatile. If the cost of insurance decreases in the future, that savings will pass directly to owners and can’t be retained by a future board. Our flood insurance cost is relatively small by comparison and remains part of our HOA fees. When comparing our HOA fees to other resorts remember our fees include cable and internet as well as water and sewer. Many associations require individual owners to contract directly with vendors for these services and are not commonly included in their fee schedule. Your monthly HOA fee will remain the same through the end of the year. The assessment for insurance that you pay monthly will increase. The new insurance assessment will begin 8/1/2022.
Considering the total insurance premium plus the cost of financing ($1,211,449.62 + $16,426.61) the monthly allocation per unit type is:
MONTHLY INSURANCE ALLOCATION
2 BEDROOM $ 405.51
1 BEDROOM $ 270.34
The MONTHLY INSURANCE ALLOCATION AMOUNT will change as of August 1, 2022:
1 bedroom-
$332.20 (HOA Dues) + $270.34 (Monthly Insurance Allocation)=$602.54
2 bedroom-
$498.30 (HOA Dues) + $405.51 (Monthly Insurance Allocation)= $903.81
Earlier this year we had three major financial unknowns. First, we needed to find out the cost of insurance. Now we know it has gone from $449,000 before Sally to over $1.2M.
Next, we had to understand what it would cost to put the resort back together given the fact Building Four was required to be built to code in an inflationary environment. I’ve been working with Claremont for several weeks to arrive at a final settlement that we believe is fair and favorable to the association. I’ll have that number finalized next week. And last, we need to understand the cost to mitigate three significant issues surfacing on our reserve study—rapidly deteriorating pools, failing forty-year-old glass in Buildings One, Two and Three and subfloor issues on the first floor of these buildings. We’ll soon know the cost.
Understanding the cost of the first two allows us to understand our financial position and resources available to fund the reserve study. By the end of July, I’ll reforecast the budget for the second half and quantify our cash position so the Board can begin to create a strategy to fund the reserve study. This has been a long journey from the abyss that still isn’t over for about a third of our owners. But that will end soon. Today I walked, inspected, and created a punch list with Claremont for every condo in Building Four East. I’ll be doing the same late next week for the West condos. We’re about to get our resort back.
Wendy Blevins
Association Manager
251-222-3758
[email protected]