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Presentation Outline
BackgroundTymber Skan StatusUtility DiscussionsCommunity Business PlanNext StepsSummary
Presentation Outline
BackgroundTymber Skan StatusUtility DiscussionsCommunity Business PlanNext StepsSummary
Tymber Skan on the Lake
Condominiums built between 1972-19744 Associations–Section 1 (78 units)–Section 2 (104 units)–Section 3 (124 units)–Master Association
Private Property Owners AssociationDeclining conditions since 2004 hurricanes and
foreclosure crisis
Section-3(19 buildings)
Section-2 (15 buildings)
Section-1 (13 Buildings)
Lake Catherine
Tymber Skan on the Lake
S. Texas Ave
Occupancy Summary
Occupancy Section 1 Section 2 Section 3 TotalOccupied
Units 50 68 66 184
Vacant Units 28 36 58 122
Total Units 78 104 124 306
Owner Occupied 8 3 9 20
Occupancy data based on door-to-door survey on June 1, 2014
Occupancy Summary
7%
54%
40%Owner Occupied
Renter
Vacant / Abandoned
Occupancy data based on door-to-door survey on June 1, 2014
Occupancy Summary
Occupancy data based on door-to-door survey on June 1, 2014
6%
94%
Owner Occupied
Investor Owned
Monthly Assessments
HOA Assessments pay for essential services
Master HOA – $42 per unitSection 1, 3 – $118-$243 per unit Water / Wastewater – $40-$55 per unit
Average Monthly Assessment including Water = $267
Potential Income (Master, Sec 1, Sec 3)–HOAs typically budget at 90% participation–Tymber Skan fully funded is:• $54,400 (monthly)• $653,200 (annually)
Actual Income–Year to date is $58,800–Average monthly income for 2014 is $9,800–June 2014 was $2,200 (4%)
Potential Income (Master, Sec 1, Sec 3)–HOAs typically budget at 90% participation–Tymber Skan fully funded is:• $54,400 (monthly)• $653,200 (annually)
Actual Income–Year to date is $58,800–Average monthly income for 2014 is $9,800–June 2014 was $2,200 (4%)
Association Income
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 $-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Assessment and Water Income
Income History
Quarterly Budgeted Income = $163,000
Lack of Income Has Led to…
Receivership by the courtsClosure of on-site management
officesUnpaid water billsUnpaid wastewater bills Intermittent garbage collectionCommon areas not maintained2 unsafe buildings demolished in 2013
Other Community Issues
Crime– Average of 1,900 calls for service
over last 3 years– Crimes include assaults, burglaries,
home invasion, and murder
Fire– 10 recent structure fires– Response concerns regarding rapid fire
spread, arson, deteriorated structural members
Building Deterioration
S. Texas Ave
Rio Grande Ave
Holden Ave
Other Community Issues
Similar challenges in surrounding communities– Tymber Skan Section 2– Villages (120 units)– Lyme Bay Colony
(350 units)– Lemon Tree (429 units)
Villages
Lemon Tree
Lyme BayColony
Presentation Outline
BackgroundTymber Skan StatusUtility DiscussionsCommunity Business PlanNext StepsSummary
Tymber Skan Status
In early 2013– Tymber Skan Board of Directors declared they cannot operate
and maintain the condominium– HOA has cut all but the very essential services and needs help– Court-Appointed Receiver in May 2013
Terms of Receivership– 2 year term with Court option for renewal– Receiver has all the responsibilities/authority of the HOA– Costs of receivership, property management, and legal services
shall be paid from assessments collected
Receiver Responsibilities
Appointment of licensed manager
Secure full compliance by the owners and tenants
Sequestration of rents, foreclosure
Receiver shall enter into lease agreements for association held units
Receiver shall quarterly submit brief report to the court regarding financial matters
Receiver Challenges
Increasing vacancy, abandoned units, non-paying owners– In May 2013, 111 Units behind $859k in assessments– In May 2014, 295 Units behind $1.43M in assessments
Deteriorating physical conditions–As of June 2014, IPMC liens totaled $21.3M
Increasing debts–OUC/OCU utility debt now at
$116,307
Presentation Outline
BackgroundTymber Skan StatusUtility DiscussionsCommunity Business PlanNext StepsSummary
Utility Services
Service providers include– Electric (OUC)–Water (OUC)–Wastewater (Orange County Utilities)
Billed– Electric – metered at individual units–Water – 3 master meters–Wastewater – billing agent
Current Debt (Sections 1 and 3)–OUC - $41,640–Orange County Utilities - $74,667
Utilities Services
Solution needed where residents pay their own utility bills directly to OUC
Existing, HOA owned/maintained metering not adequate–Old meters in Sections 1 and 3–Need to install securable shut-off valves–Adequate infrastructure does not exist
for Section 2
Proposed Water Plan
Establish flat monthly fees for services
Require residents to join OUC’s Power Pass Program–Prepay program–When account reaches $0.00:• Electric service is terminated• Notice given to HOA to disconnect water service
Community meetings scheduled for August 12th and August 28th
OUC’s Conditions
OUC will implement the Power Pass program in mid-September
Billing difference between master meter and individual accounts –Responsibility of HOA
OUC’s Conditions
HOA must:–Take steps to reduce billing difference–Pay current bill–Make payments toward arrears
Failure to pay will result in immediate shut-off of water to Tymber Skan
Presentation Outline
BackgroundTymber Skan StatusUtility DiscussionsCommunity Business PlanNext StepsSummary
Community Business Plan
Success of utility plan requires an active HOA–Managing account status and
water connections–Collection of assessments to
pay for critical servicesNumerous actions are the
responsibility of the HOACommunity Business Plan directs near
term strategies and actions
Income
Business Plan RFPs
Maintenance
ExpensesReserves
Budget
Community Business Plan
Agreement on utility debt Water shut-off, evictions Boarding and securing vacant units Trespass program with OCSO Payment of critical services– Water payment delta – Garbage collection– Street lighting / security– Grounds maintenance
Building improvements Strategies to increase revenues– Seizure of rents / foreclosures
Authority / Responsibility
Milestones / Measures
Schedule
Costs
Community Business Plan
Estimated Costs– Water Shut Off Valves and Repairs - $25,000 – Boarding and Securing Units - $75,000 – Legal Services - $50,000– Paving and repair of roads - $40,000
Total immediate expenditure needs ~ $190,000
Community Business Plan
Progress to date by County–Coordinated dozens of meetings (County, Receiver,
OUC, OCSO)–Scheduled community meetings with residents
regarding water / wastewater services–Prepared estimates for:• Repair of roads• Boarding units• Utility services
Community Business Plan
Code Enforcement status–Many buildings beyond repair–5 buildings targeted in 2014–10-15 buildings possible in 2015
(leaving 25-30 of the original 47 buildings)–Owner / Tenant Relocation Assistance
Long term impact of lower number of units to spread fixed costs
Presentation Outline
BackgroundTymber Skan StatusUtility DiscussionsCommunity Business PlanNext StepsSummary
Next Steps
Work with Receiver and OUC to confirm agreement on water service and arrears
Hold community meetings and implement Utilities Services Plan
Receiver to implement Community Business PlanHold monthly administrative meetings and
quarterly Board updates for next yearStaff will bring back authorization for
expenditure of $190,000 as outlined
Presentation Outline
BackgroundTymber Skan StatusUtility DiscussionsCommunity Business PlanNext StepsSummary
Summary
Tymber Skan has struggled for years94% vacant or owned by absentee
landlordsMost owners have stopped paying
assessmentsHOA has not had funds to
pay billsCourts appointed receiver
for 2 years