Orange County BCC
Tymber Skan Update
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 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
Tymber Skan on the Lake
Rio Grande Ave
John Young Pkwy
S. Texas Ave
Holden Ave
Tymber Skan on the Lake
Lake
Catherine
Section-3
(19 buildings)
Section-2
(15 buildings)
Section-1
(13 Buildings)
Occupancy Summary
Occupancy
Section 1
Section 2
Section 3
Total
Occupied
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
6%
Owner Occupied
40%
Renter
Vacant /
Abandoned
54%
Occupancy data based on door-to-door survey on June 1, 2014
Occupancy Summary
6%
Owner Occupied
Investor Owned
94%
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
Association Income
 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%)
Income History
Assessment and Water Income
$200,000
$180,000
Quarterly Budgeted Income = $163,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$-
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
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
Other Community Issues
– Tymber Skan Section 2
– Villages (120 units)
– Lyme Bay Colony
(350 units)
– Lemon Tree (429 units)
Villages
Lyme Bay
Colony
S. Texas Ave
Lemon Tree
Holden Ave
Rio Grande Ave
 Similar challenges in
surrounding
communities
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
• 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
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
Business
Plan
Income
Reserves
 Numerous actions are the
responsibility of the HOA
 Community Business Plan directs near
term strategies and actions
RFPs
Budget
Maintenance
Expenses
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
 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