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 1972-1974  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 506866184 Vacant Units 283658122 Total Units 78104124306 Owner Occupied 83920 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 – 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

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