Tymber Skan Update Orange County BCC August 5, 2014
Presentation Outline Background Tymber Skan Status Utility Discussions Community Business Plan Next Steps Summary
Presentation Outline Background Tymber Skan Status Utility Discussions Community Business Plan Next Steps Summary
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
Tymber Skan on the Lake S. Texas Ave John Young Pkwy Rio Grande Ave Holden Ave
Lake Catherine Tymber Skan on the Lake S. Texas Ave
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
Occupancy Summary 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
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
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
Income History Quarterly Budgeted Income = $163,000
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
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 Bay Colony
Presentation Outline Background Tymber Skan Status Utility Discussions Community Business Plan Next Steps Summary
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 Background Tymber Skan Status Utility Discussions Community Business Plan Next Steps Summary
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 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
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 Background Tymber Skan Status Utility Discussions Community Business Plan Next Steps Summary
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
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 – 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
Presentation Outline Background Tymber Skan Status Utility Discussions Community Business Plan Next Steps Summary
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
Presentation Outline Background Tymber Skan Status Utility Discussions Community Business Plan Next Steps Summary
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
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