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Tymber Skan Update Orange County BCC August 5, 2014.

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Presentation on theme: "Tymber Skan Update Orange County BCC August 5, 2014."— Presentation transcript:

1 Tymber Skan Update Orange County BCC August 5, 2014

2 Presentation Outline  Background  Tymber Skan Status  Utility Discussions  Community Business Plan  Next Steps  Summary

3 Presentation Outline  Background  Tymber Skan Status  Utility Discussions  Community Business Plan  Next Steps  Summary

4 Tymber Skan on the Lake  Condominiums built between  4 Associations – Section 1 (78 units) – Section 2 (104 units) – Section 3 (124 units) – Master Association  Private Property Owners Association  Declining conditions since 2004 hurricanes and foreclosure crisis

5 Tymber Skan on the Lake S. Texas Ave John Young Pkwy Rio Grande Ave Holden Ave

6 Lake Catherine Tymber Skan on the Lake S. Texas Ave

7 Occupancy Summary Occupancy Section 1 Section 2 Section 3 Total OccupiedUnits Vacant Units Total Units Owner Occupied Occupancy data based on door-to-door survey on June 1, 2014

8 Occupancy Summary Occupancy data based on door-to-door survey on June 1, 2014

9 Occupancy Summary Occupancy data based on door-to-door survey on June 1, 2014

10 Monthly Assessments  HOA Assessments pay for essential services  Master HOA – $42 per unit  Section 1, 3 – $118-$243 per unit  Water / Wastewater – $40-$55 per unit  Average Monthly Assessment including Water = $267

11  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

12 Income History Quarterly Budgeted Income = $163,000

13 Lack of Income Has Led to…  Receivership by the courts  Closure of on-site management offices  Unpaid water bills  Unpaid wastewater bills  Intermittent garbage collection  Common areas not maintained  2 unsafe buildings demolished in 2013

14 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

15 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 Bay Colony

16 Presentation Outline  Background  Tymber Skan Status  Utility Discussions  Community Business Plan  Next Steps  Summary

17 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

18 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

19 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

20 Presentation Outline  Background  Tymber Skan Status  Utility Discussions  Community Business Plan  Next Steps  Summary

21 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

22 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

23 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 Electric service is terminated Notice given to HOA to disconnect water service Notice given to HOA to disconnect water service  Community meetings scheduled for August 12 th and August 28 th

24 OUC’s Conditions  OUC will implement the Power Pass program in mid-September  Billing difference between master meter and individual accounts – Responsibility of HOA

25 OUC’s Conditions

26  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

27 Presentation Outline  Background  Tymber Skan Status  Utility Discussions  Community Business Plan  Next Steps  Summary

28 Community Business Plan  Success of utility plan requires an active HOA – Managing account status and water connections – Collection of assessments to pay for critical services  Numerous actions are the responsibility of the HOA  Community Business Plan directs near term strategies and actions Income Business Plan RFPs Maintenance Expenses Reserves Budget

29 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

30 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

31 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

32 Community Business Plan  Code Enforcement status – Many buildings beyond repair – 5 buildings targeted in 2014 – buildings possible in 2015 (leaving of the original 47 buildings) – Owner / Tenant Relocation Assistance  Long term impact of lower number of units to spread fixed costs

33 Presentation Outline  Background  Tymber Skan Status  Utility Discussions  Community Business Plan  Next Steps  Summary

34 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 Plan  Hold monthly administrative meetings and quarterly Board updates for next year  Staff will bring back authorization for expenditure of $190,000 as outlined

35 Presentation Outline  Background  Tymber Skan Status  Utility Discussions  Community Business Plan  Next Steps  Summary

36 Summary  Tymber Skan has struggled for years  94% vacant or owned by absentee landlords  Most owners have stopped paying assessments  HOA has not had funds to pay bills  Courts appointed receiver for 2 years

37 Summary  Utilities Services Plan and Community Business Plan developed  Must comply with OUC’s conditions to keep water on  Requires collection of assessments  Staff recommends one-time limited County participation  Similar challenges in other communities


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