tymber skan update orange county bcc august 5, 2014

Tymber Skan Update

Orange County BCC

August 5, 2014

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


S. Texas Ave

John Young Pkwy

Rio Grande Ave

Holden Ave

Section-3(19 buildings)

Section-2 (15 buildings)

Section-1 (13 Buildings)

Lake Catherine


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 Summary


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

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

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

http://hfuw.files.wordpress.com/2012/01/ouc-logo-rgb.jpg

http://titlesourceusa.com/resource-center/important-information/utilities/orange-county/

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

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

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


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


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


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


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

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

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

Summary

Utilities Services Plan and Community Business Plan developed

Must comply with OUC’s conditions to keep water on

Requires collection of assessmentsStaff recommends one-time

limited County participationSimilar challenges in other

communities

tymber skan update orange county bcc august 5, 2014

Documents

association income slide

texas ave slide

deterioration slide

steps summary slide

participation tymber

units section

lake catherine tymber

average monthly income