Dues rise about 4-5%/yr, inclusions are strong, financials are audited and there has been no capital special assessment, offset by an insurance special assessment that swings $755K-$1.1M a year (22% of budget), a $288K operating-fund deficiency in 2025, net reserve growth of only $113K to $2.43M (budgeted General Reserves 13.5% of budget, below the 15% mark), the auditor's missing-reserve-disclosure flag and heavy related-party contracts.
2026 budget$3,912,397
Dues change+4.0% on the year
Reserves14% of budget
Reserve balance$2,432,887
Reserve studyOn file
Special assessments2026 $875,000 budgeted ($3,584/yr, about $299/mo, for a 0.4096% unit) Annual 'Insurance Revenue Assessment' levied separately from regular dues by design; audit calls it 'Special assessments - insurance'; 2025 $866,153 actual ($1,276,800 budgeted) Annual insurance assessment; 2024 $1,017,727 actual ($1,276,800 budgeted) Annual insurance assessment; 2023 $1,098,731 actual ($843,000 budgeted) Annual insurance assessment; 2022 $755,023 actual Annual insurance assessment
InsuranceProperty insurance is funded by a separate annual insurance assessment, not regular dues: actual insurance expense $698,663 (2022), $923,986 (2023), $1,019,348 (2024), $892,452 (2025); 2026 budget $875,000 (22.4% of total budget). An Affiliate of the Developer provides the insurance services (approx. $1,033,000 in 2023, $952,000 in 2024, $803,000 in 2025). Master Deed requires casualty coverage of at least 80% of replacement value incl. windstorm, wind-driven rain and flood 'if available', with the Board as Insurance Trustee; owners must carry their own contents insurance and file a certificate. A 2025 'Valet Drive thru' loss (date of loss 06/15/25) produced a $25,000 insurance-claim expense and a $70,951 insurance receivable. Earlier casualty history: 'Hurricane IAN' repairs $4,523 in 2023 and insurance-claim damage repairs of $7,408 in 2022 (2024 Minutes packet, P&L p. 13; audited statement p. 34). Uninsured cash: balances at one bank exceeded the FDIC limit by about $1,526,014 (2025), $2,048,000 (2024), $1,933,000 (2023) and $1,670,000 (2022) (Audit Note 4 in both packets).
Wind deductibleunstated (no property/wind declarations in this set). Master Deed Art. XXI makes the owner pay the deductible portion of any insured loss to owner-maintained items; Art. XXIV requires the Association to cover any insurance shortfall from the Reserve Fund for Replacements or by an assessment against all owners, and reconstruction is mandatory unless two-thirds or more of the property is destroyed. The 2025 P&L carries a $25,000 insurance-claim expense (Valet Drive, date of loss 06/15/25) and a $70,951 insurance receivable.
FloodNFIP RCBAP through Homesite Insurance Company (agency: USI Insurance Services LLC), term 05/31/2025-05/31/2026, building coverage $65,209,000 on 304 units with a $25,000 figure shown in the deductible column, no contents coverage, flood zone AE, elevated on piles with enclosure, first-floor height 6.3 ft, 0 prior NFIP claims, total annual premium $27,669 (adjusted $27,369 after an 08/21/2025 endorsement). First mortgagee listed: Western Alliance Bank.
DelinquencyLow: homeowner A/R $2,733 at Dec 31, 2025 ($12,088 at Dec 31, 2024; $8,565 at Dec 31, 2023); all receivables considered collectible, no allowance; net bad debt $76 (2025), $117 (2024), $399 (2023). Policy is to retain counsel and lien units 90+ days delinquent; monthly installments are delinquent on the 15th; late fee after 20 days, interest at SC judgment rate, acceleration and foreclosure available.