Bluewater Resort HOA Risk Assessment: Workable with rules

02 The five questions

What the documents decide
before your first guest books.

Five dots is the best answer for an owner who wants to run the unit themselves. One dot is a red flag. Open “What the documents say” under each for the exact words.

Can you rent it your way?

Favorable

Whether the deed and rules let you rent short-term on your own terms: no requirement to use the on-site program, no minimum stay that kills weekend bookings, and no rule against saying where the condo is.

The deed guarantees rentals 'for any period of time', no on-site program, minimum stay, advertising or disclaimer rule exists and any owner or rental agent may manage, but the Rules require a copy of every lease to be deposited with the Association (the Leasing Registration Form only for stays over 30 days) and only whole-unit rentals, which is a light registration rule rather than none.

Short-term rentalsAllowed

Minimum stayNone stated

Must use on-site programNo

Owner may rent it personallyYes

Off-site manager allowedYes

Owner-use limitsNone stated.

RegistrationCopies of all leases must be deposited with the Association (Rules Art. V(a)). A completed Leasing Registration Form (from the Association website or management company) is required only when a unit is leased for more than 30 days (Rules Art. V(b)). Owners should notify tenants that the Rules apply and post the Rules in the unit (Rules Art. IX(d)). Pets: tenants and guests may not bring pets. No business license, wristband or front-desk registration requirement appears in the documents.

Advertising rulesNone found. The only related rule bans exterior 'for rent' and 'for sale' signs on vehicles, buildings or units (Rules Art. II Sec. 17). No rule restricts use of the 'Bluewater' name, photographs or online listings, and no disclaimer language is required.

Disclaimer in your listingNot required

Vote to change rental rulesThe deed-level rental right (Master Deed Art. XV) can only be changed by an amendment approved by co-owners holding 67% of the total interest in the common elements, with mortgagee consent where required (Master Deed Art. XXIX). By-Laws change by 51% of the total votes (By-Laws Art. X). The Rules (including the leasing article and fine schedule) can be changed by the Board alone on 30 days' written notice (Rules Preamble and Art. XI Sec. 1; By-Laws Art. XVII), subject to the Master Deed prevailing in any conflict (Rules Art. X).

What the documents say (14)

“Moreover, nothing contained in this Master Deed shall prohibit the individual unit owners from renting or leasing their unit, if they so desire, for any period of time.”Master Deed, Article XV, page 9

“In addition, an individual unit which is capable of conversion to separate living areas by the closing of interior partitions designed for such purpose may be so separated and utilized as separate living units.”Master Deed, Article XV, page 9

“Any rental, sales or management entity utilizing any portion of the COMMON ELEMENTS shall hold the ASSOCIATION harmless from any claims or demands for property damage or personal injury arising by reason of the acts or negligence of such entity, its employees, servants or agents.”Master Deed, Article XXIII, page 12

“All present or future owners, tenants, or any other person who might use the facilities of the CONDOMINIUM in any manner, are subject to the provisions of this Master Deed and all documents appurtenant hereto and incorporated herewith, and the mere acquisition or rental of any UNIT, or the mere act of occupancy of any UNIT or use of COMMON ELEMENTS, shall signify that the provisions of this Master Deed are accepted and ratified in all respects.”Master Deed, Article XXXI, page 22

“At such meeting, the amendment or amendments proposed must be approved by an affirmative vote of all the co-owners of Sixty-Seven (67%) percent of the total interest in the COMMON ELEMENTS and LIMITED COMMON ELEMENTS and, if permitted by law each of the affirmative voter's institutional mortgagees, if any, in order for such amendment or amendments to become effective.”Master Deed, Article XXIX, page 20

“Leasing a UNIT for residential purposes shall not be considered a "business" within the meaning of this Section 1.”Rules and Regulations (eff. June 1, 2017), Article II, Section 1, page 3

“"Leasing" or "Renting" shall refer to the regular, exclusive occupancy of an APARTMENT by a person other than OWNER, for which the OWNER receives any consideration or benefit, including, but not limited to, a fee, service, gratuity, or emolument.”Rules and Regulations (eff. June 1, 2017), Article I, Section 12, page 2

“Copies of all leases shall be deposited with the ASSOCIATION.”Rules and Regulations (eff. June 1, 2017), Article V(a), page 6

“OWNERS, tenants, or rental agents shall provide the ASSOCIATION with a completed Leasing Registration Form when a UNIT is Leased for more than thirty (30) days.”Rules and Regulations (eff. June 1, 2017), Article V(b), page 6

“Tenants shall abide by the ASSOCIATION'S RULES AND REGULATIONS and failure to do so may result in fines arising from the violations of the RULES AND REGULATIONS. OWNERS are ultimately responsible for such fines assessed as a result of the actions of the tenant.”Rules and Regulations (eff. June 1, 2017), Article V(c), page 6

“No portion of a UNIT, other than the entire unit, may be rented.”Rules and Regulations (eff. June 1, 2017), Article V(d), page 6

“No signs whatsoever (including, but not limited to, "for sale" signs and "for rent" signs) shall be installed or maintained on any vehicle, personal property, BUILDING, or any portion of a UNIT or other structure visible from the exterior thereof, except:”Rules and Regulations (eff. June 1, 2017), Article II, Section 17, page 4

“The ASSOCIATION reserves the right in its sole discretion to modify, amend, supplement, add to, or delete the RULES at any time upon thirty days' written notice.”Rules and Regulations (eff. June 1, 2017), Preamble, page 1

“Except for the areas of the Condominium designated for recreational use, the condominium UNITS within Bluewater Villas shall exclusively be used for residential purposes as set forth in the MASTER DEED, the Rules, or any Amendments thereto, provided, however, the COMMERCIAL UNIT shall retain all rights as set forth in the MASTER DEED.”Rules and Regulations (eff. June 1, 2017), Article II, Section 1, page 3

Will your guests be treated like guests?

Favorable

Whether a guest who booked through you gets the same resort as a guest who booked through the front desk: the same pools, parking, wristbands and check-in, or a second-class version of them.

Tenants get every amenity with no wristband, pass or guest-fee program, but there is no front-desk check-in for owner guests, how short-term guests obtain a parking tag is unstated, guests may not bring pets, and pool hours and privileges are Board-controlled.

Amenities for your guestsSame as program guests

Wristbands & parking passesNo wristband or guest-pass program appears in any document. Owners are issued a Bluewater Villas parking tag that must hang from the mirror or sit on the dashboard of any vehicle in a designated space; cost and the method for tenants/guests to obtain a tag are unstated. Golf carts must be registered with a Bluewater Villas sticker bought from the management company for a Board-set fee. Luggage carts may be used by owners, guests and tenants and must be returned immediately. Pool hours are seasonal and posted at the pools; misbehavior can cost the unit its amenity privileges (Rules Art. VIII and Sec. 1(b)).

Check-inunstated (owner handles). No document requires owner guests to check in at a front desk. The Commercial Unit includes a front desk/reservation desk area and the 2025 minutes record a 'Welcome Desk' presentation by Wyndham representatives under Bluewater Commercial, LLC, but nothing ties owner guests to it.

TrashRefuse must be in secured heavy-duty plastic bags and deposited in dumpsters or trash chutes on the property; nothing may be left in corridors, balconies or stairways; discarded furniture/appliances must go to an off-site location (Rules Art. II Sec. 14). Health-and-safety fines up to $500 for trash accumulation that may attract pests (Rules Ex. A).

ElevatorsNo elevator-use or move-in rules in the Rules. Elevator Maintenance budgeted at $45,000 (2024 and 2025); the 2024 cover letter attributes the increase to the age of the elevators. Villas I and II each have one elevator; the towers have elevators per the Master Deed exhibits.

Housekeeping & linenunstated. Maids' rooms and laundry rooms are limited common elements of the Commercial Unit (Master Deed amendment June 1984, para. 2); the Commercial LLC budget shows laundry income. No housekeeping or linen requirement is imposed on owners.

What the documents say (10)

“The amenities at Bluewater Villas are for the exclusive use and enjoyment for OWNERS and tenants.”Rules and Regulations (eff. June 1, 2017), Article VIII, page 8

“An OWNER's use of the recreational amenities within Bluewater Villas is at his or her own risk and subject to compliance with all Rules, including those concerning use of the swimming pools and fitness center.”Rules and Regulations (eff. June 1, 2017), Article VIII, page 8

“The COMMON ELEMENTS shall be, and the same are hereby declared to be subject to a perpetual non-exclusive easement in favor of all of the owners of UNITS in the CONDOMINIUM for their use and the use of their immediate families, guests, and invitees, for all proper and normal purposes, and for the furnishing of services and facilities for which the same are reasonably intended, for the enjoyment of said owners of UNITS.”Master Deed, Article IX, page 7

“All Owners will be issued a Bluewater Villas Parking tag. The Bluewater Villas Parking tag must be made visible at all times, by hanging from rear view mirror or placed on dashboard, in any vehicle parked in a designated parking space.”Rules and Regulations (eff. June 1, 2017), Article VI, Section 1, page 7

“Refuse, rubbish and garbage shall be disposed of in a secured, heavy duty plastic bag and deposited in dumpsters or trash chutes located on the property.”Rules and Regulations (eff. June 1, 2017), Article II, Section 14, page 4

“Luggage carts owned by the ASSOCIATION are to be used only by OWNERS, guests and tenants for their use in the transport of personal effects and returned to entrance storage areas immediately after use and shall not be stored overnight in an OWNERS UNIT.”Rules and Regulations (eff. June 1, 2017), Article II, Section 23, page 5

“No Guests or Tenants shall be permitted to have or keep any pet in Bluewater Villas.”Rules and Regulations (eff. June 1, 2017), Article II, Section 16(a), page 4

“An OWNER renting his or her UNIT is responsible for the actions of their Tenants. OWNERS should notify Tenants in advance of occupancy that the RULES apply to Tenants and that Tenants are subject to fines by the ASSOCIATION or MANAGEMENT if Tenants violate any RULES OR REGULATIONS. RULES should be posted in the UNIT in a prominent place.”Rules and Regulations (eff. June 1, 2017), Article IX(d), page 9

“A VIOLATION OF THESE RULES SHALL CONSTITUTE A DEFAULT. IN ADDITION TO ALL OTHER REMEDIES THE ASSOCIATION MAY SUSPEND THE OWNERS'S RIGHT TO USE AMENITIES AND FINE THE OWNER.”Rules and Regulations (eff. June 1, 2017), Article X, page 9

“Elevator Maintenance increased by $5k due to the age of the elevators and expenses in the last twelve (12) months.”2024 Budget cover letter (Oct. 19, 2023), page 1

How much work lands on you?

Favorable

What the rules make the owner personally responsible for: a local contact who answers in minutes, keys and passes, trash, fines for guest behaviour, vendor hours and elevators.

No local-contact, response-time or housekeeping rule, but owners must deposit leases, keep locks Association-accessible and allow monthly pest control, follow strict contractor and summer-blackout rules, answer for tenant fines up to $100 a day with one-way attorney's-fee exposure, and maintain windows, sliding doors, HVAC and the balcony surfaces themselves.

Local contactunstated (no local agent or contact requirement in any document).

Response timeunstated (no response-time rule).

Locks & keysOwners and tenants may not change or add locks without giving the Association access; the Board or its agent may keep a passkey or lock combination for maintenance and emergencies (Rules Art. II Sec. 20). The Master Deed lets the Association require each owner to deposit a key for emergency entry (Art. XVIII). Pest control must have monthly access; the 2024 minutes (p. 2) record a Board policy that owners may be fined if pest control cannot get in, and owners using their own exterminator must supply proof. The contractor reported that in the prior year it reached only about 25% of the Villa units for lack of access, which is why service moved to monthly (2024 minutes p. 2).

FinesExhibit A Fine Policy: fines start at $50; general violations up to $100 per day or per occurrence; vehicle maintenance $50; equipment/trailer violations $100 / $250 / $500 for first/second/third offense plus towing; pet violations $50 per occurrence and possible removal; health-and-safety violations up to $500 per occurrence; loss of cable privileges, suspension of amenity rights and legal action are also available. Owners are 'ultimately responsible' for tenant fines and liable for all enforcement costs including attorneys' fees (Rules Art. V(c), Art. X). The 2025 minutes add a $100 fine for disrupting meetings. Vehicles in violation may be towed at the owner's expense after 3 days (or 72 hours) and after 14 days if unmoved in an unassigned space. Fee shifting is one-sided at deed level: if the Association sues over a default and wins it recovers costs and attorney's fees, 'but in no event shall the owner of any UNIT be entitled to such attorney's fees' (Master Deed Art. XXX.C); the By-Laws' prevailing-party clause (Art. VIII Sec. 3) yields to the Master Deed (By-Laws Art. XVII Sec. 3). For non-payment violations the By-Laws give a 7-day cure period after written notice before the Association may treat the breach as material and sue, and let it correct public-health hazards immediately at the owner's cost as a lien (By-Laws Art. VIII Sec. 1).

Contractors & vendorsIn-unit work by contractors requires a permit from management, proof of a valid contractor/specialty license, a certificate of liability and workers' compensation insurance (Rules Art. IV Sec. 1). Contractors sign in/out at the main tower, wear ID, file the permit with security and remove debris by 6:00 p.m. daily (Sec. 2). Work hours 8:00 a.m.-6:00 p.m. Monday-Saturday, none on Sunday (Sec. 3). Construction blackout for major work (grinding, cutting, hammering, flooring, drywall, countertops, bathroom fixtures) from Memorial Day to Labor Day; minor decorating allowed if quiet (Sec. 4). No commercial vehicles overnight (Art. VI Sec. 7).

AlsoOwner maintains and replaces windows, screens, doors, sliding glass doors, HVAC, appliances, in-unit fixtures and the balcony floor, balcony-facing walls and railings (Master Deed Art. XXI; Rules Art. II Sec. 6). Window treatments visible from outside must have a uniform white backing; no tint, film or decals (Rules Art. II Sec. 6). Owner pays the portion of a covered loss that falls under the Association's insurance deductible for items the owner must maintain (Master Deed Art. XXI) and is liable for damage caused by family, guests, agents or lessees and for any resulting insurance-rate increase (Master Deed Art. XXX.B; By-Laws Art. VIII Sec. 2). Owners must notify the Association within 10 days of any transfer (By-Laws Art. IX Sec. 2). Nothing may be stored on balconies; no grilling anywhere on balconies or common elements; smoking only in designated areas/rooms. Owners are encouraged to use the association website for ARC requests, work orders, payments and documents; coupon-book charge-backs were under consideration (2024 minutes p. 5).

What the documents say (17)

“No OWNER nor tenant shall alter any lock or install new locks on any door without providing the ASSOCIATION access to their unit.”Rules and Regulations (eff. June 1, 2017), Article II, Section 20, page 5

“In case of any emergency originating in or threatening any UNIT, regardless of whether the owner is present at the time of such emergency, the Board of Directors of Association or any other person authorized by it, or the building superintendent or Managing Agent, shall have the right to enter such UNIT for the purpose of remedying or abating the cause of such emergency, and such right of entry shall be immediate, and to facilitate entry in the event of any such emergency, the owner of each UNIT, if required by the ASSOCIATION, shall deposit under the control of the ASSOCIATION a key to such UNIT.”Master Deed, Article XVIII, page 10

“OWNERS may be subject to fines starting at $50.00, unless otherwise noted, loss of cable privileges and/or legal action.”Rules and Regulations (eff. June 1, 2017), Exhibit A Fine Policy, page 11

“GENERAL VIOLATIONS: Subject to fines, not to exceed $100.00 per day or per occurrence (up to the maximum allowed by law).”Rules and Regulations (eff. June 1, 2017), Exhibit A Fine Policy, page 11

“HEALTH AND SAFETY VIOLATIONS: Subject to fines, not to exceed $500.00 per occurrence (including but not limited to shooting fireworks on ASSOCIATION PROPERTY; throwing items from balconies; accumulation of trash and/or other materials that may attract pests; threat of flood or fire damage to neighboring properties, etc.)”Rules and Regulations (eff. June 1, 2017), Exhibit A Fine Policy, page 11

“ALL VIOLATIONS SHALL BE THE FINAL RESPONSIBILITY OF THE OWNER.”Rules and Regulations (eff. June 1, 2017), Exhibit A Fine Policy, page 11

“OWNERS shall be liable and responsible to the ASSOCIATION for all costs of enforcement, including reasonable attorneys' fees.”Rules and Regulations (eff. June 1, 2017), Article X, page 9

“No repairs, renovations or construction work shall be performed inside a UNIT by contractors, subcontractors or similar companies unless OWNER receives a permit from management and furnishes the ASSOCIATION with proof of a valid contractor or specialty license required for the work together with a certificate of liability and worker's compensation insurance, and such other permits and approvals as may be required by the ASSOCIATION in its sole and absolute discretion.”Rules and Regulations (eff. June 1, 2017), Article IV, Section 1, pages 5-6

“The blackout period will be in effect from Memorial Day to Labor Day of each year.”Rules and Regulations (eff. June 1, 2017), Article IV, Section 4, page 6

“Work hours shall be observed from 8:00 a.m. until 6:00 p.m. Monday through Saturday. No work is allowed on Sunday.”Rules and Regulations (eff. June 1, 2017), Article IV, Section 3, page 6

“The balcony floor, walls facing the balcony, and balcony railings attached to his UNIT shall be maintained by the owner at his expense.”Master Deed, Article XXI, page 11

“Should the owner fail to provide the maintenance and/or repairs as required, the ASSOCIATION shall have the right to enter the UNIT to accomplish same at the sole cost and expense of the owner and said cost and expense shall be charged against the owner and shall become a lien on his UNIT in like manner as a monthly assessment.”Master Deed, Article XXI, page 11

“The owner or owners of each UNIT shall be liable for the expense of any maintenance, repair or replacement rendered necessary by his act, neglect or carelessness, or by that of any member of his family, or his or their guests, employees, agents or lessees, but only to the extent that such expense is not met by the proceeds of insurance carried by ASSOCIATION.”Master Deed, Article XXX.B, page 22

“The OWNER of any UNIT shall at his own expense, repair and maintain all windows, screens, door, door frames and sliding glass doors. All window treatments in individual units, visible from the exterior of the unit must have a uniform white backing. No decals, decorations, window tint or film are allowed on windows or sliding glass doors.”Rules and Regulations (eff. June 1, 2017), Article II, Section 6, page 3

“It was noted that if a unit is having issues with pests, they are to contact Empress Management.”Minutes, Annual Members' Meeting, March 9, 2024, page 2

“In any proceeding arising because of an alleged default by the owner of any UNIT, the ASSOCIATION, if successful, shall be entitled to recover the costs of the proceedings, and such reasonable attorney's fees as may be determined by the Court, but in no event shall the owner of any UNIT be entitled to such attorney's fees.”Master Deed, Article XXX.C, page 22

“Any violations which are deemed by the board of Directors to be a hazard to public health may be corrected immediately as an emergency matter by the Association and the cost thereof shall be charged to the Dwelling Owner as a specific item, which shall be a lien against said Owner's Dwelling with the same force and effect as if the charge were a part of the common expenses.”By-Laws, Article VIII, Section 1, page 10

Is the money healthy?

Caution

Whether the association can pay for the building without surprise bills: reserves, special assessments, insurance deductibles, how fast dues are rising, and how much of the fee passes through to a master association.

Reserves are funded at about 13% per a reserve study and no special assessment has been levied, but insurance jumped 51% then 13% with an appraisal-driven increase pending and the wind deductible unknown, dues rose 15% then 4.9%, and assessments carry a $120,394 bank-loan payment plus a $50,000-$60,000 subsidy of the Commercial LLC while reserve balances are not disclosed.

2025 budget$2,847,107

Dues change+4.9% on the year

Reserves13% of budget

Reserve studyOn file

Special assessmentsNone in the documents

InsuranceBudgeted Insurance Expense: $528,414 (2023) -> $797,500 (2024, +51% over the prior budget and +26.5% over the actual April 2023 renewal of $630,500 including finance charges) -> $900,000 (2025, +12.9%). Insurance is 31.6% of the 2025 total budget (39.1% of operating). ACORD 24 dated 5/22/2024: Primary Property Layer, policy period 4/1/2024-4/1/2025 (OCR reads '4/4/2024'); carriers Certain Underwriters at Lloyd's, Lexington Insurance Company, QBE Specialty Insurance Company, Colony Specialty Insurance Company and Great American Insurance Company; broker Marsh & McLennan Agency LLC. Building limits: 2001 S Ocean Blvd $24,207,520 (179 residential + 1 commercial unit); 2000 S Ocean Blvd $2,022,080 (28 units); 1906 S Ocean Blvd $1,783,680 (24 units); 301 20th Ave South garage $3,040,000; total about $31.05 million. Boiler & Machinery 4/1/2024-4/1/2025 with a limit the OCR renders as '532,153,280' (probably $32,153,280, unverified); Crime policy 4/1/2024-4/1/2025 (limit illegible). Property form: Special Form, Replacement Cost, Coinsurance Waived, Ordinance or Law A included, Ordinance or Law B/C combined $250,000; coverage is 'All-In' and claims adjust per the By-Laws/Declaration. The 2025 minutes (p. 2) report that a 2024 third-party insurance appraisal valued the property 'significantly higher than currently presented', so the 2025 renewal would carry higher insured values and premium, which the Board says it forecast in the 2025 budget. Insurance Claim Deductible line in the HOA budget: $25,000 (2024), $20,000 (2025). Master Deed Art. XXIV requires full replacement-cost casualty coverage, $1,000,000 liability, workers' comp and a $50,000 fidelity bond; reconstruction is not compulsory if more than two-thirds of the property is destroyed; uninsured rebuilding costs fall on the owners of directly affected units in equal shares and become a lien. Master Deed Art. XXI makes owners pay the deductible share for items they must maintain. The 2024 minutes (p. 2) record the broker's view that 87% of surveyed buildings were underinsured and that new coastal carriers offer limits of generally no more than $5 million each.

Wind deductibleunstated (the deductible column on the OCR'd ACORD 24 is illegible)

Floodunstated in the certificate: 'FLOOD: Refer to Separate Flood Declaration for Coverage Evidence'; the flood declaration was not supplied

DelinquencyRegular assessments are due monthly on the first of the month (By-Laws Art. VI Sec. 4(a)). No delinquency rate is reported. Bad Debt Expense budgeted at $3,500 (2024) and $1,000 (2025). The 2024 minutes (p. 3) record the Association attorney describing himself as aggressive on accounts sent for collection. Master Deed Art. XXVII.G: default on the due date; Board may accelerate the year's installments on 10 days' notice; after 20 days the Association may foreclose; delinquent sums bear interest at the SCNB prime rate or the legal maximum, whichever is lower; owner pays collection costs and attorney's fees (XXVII.H); the lien may be foreclosed like a mortgage with rent and a receiver (XXVII.J); a foreclosing lender takes free of prior delinquencies, which the other owners absorb (XXVII.K); a voluntary grantee is jointly liable with the seller for unpaid assessments (XXVII.L). Directors more than 30 days delinquent automatically resign (By-Laws Art. IV Sec. 5). The By-Laws' own acceleration clause gives not less than 15 days' notice (Art. VI Sec. 7). The Master Deed requires the budget to carry both a replacement reserve and a general operating reserve, but lets the Board apply reserve money to emergencies or to operating shortfalls (Art. XXVII.D-E), and the By-Laws exclude reserve contributions when testing whether a budget exceeds 115% of the prior year (Art. VI Sec. 4(b)). On a sale the Association must furnish a binding statement of the seller's assessment status on which the buyer may rely (Master Deed Art. XXVII.L; By-Laws Art. V Sec. 8(d)).

What the documents say (30)

“The draft budget reflects an increase of 26.5% over the actual April 2023 renewal of $630,500 (including finance charges). It is an increase of $269,086 (51%) over the prior year budget.”2024 Budget cover letter (Oct. 19, 2023), page 1

“This, again, is by far the most impactful line item in the budget and represents much of our overall increase (76%).”2024 Budget cover letter (Oct. 19, 2023), page 1

“General Reserve Funding was increased based on the Reserve Study report.”2024 Budget cover letter (Oct. 19, 2023), page 1

“We also added a line item under "Bluewater LLC Shortfall Expense Funding" to account for the $30k year-to-date shortfall in the Commercial, LLC, budget, as well as the projected budget shortfall in the Commercial, LLC, budget for 2024 of $30,640.”2024 Budget cover letter (Oct. 19, 2023), page 1

“Expenses year over year reflected in this budget total $353,971.”2024 Budget cover letter (Oct. 19, 2023), page 1

“40-30100-00 Regular Assessments 2,361,030 $ 2,715,001 $”2024 Budget (Bluewater Villas HOA), page 2, income table; total increase printed as 14.99%

“51-83300-00 Insurance Expense 528,414 797,500”2024 Budget (Bluewater Villas HOA), page 2, Administrative

“40-30100-00 Regular Assessments 2,715,001 $ 2,847,107 $”2025 Budget (Bluewater Villas HOA), page 1, income table; total increase printed as 4.87%

“51-83300-00 Insurance Expense 797,500 900,000”2025 Budget (Bluewater Villas HOA), page 1, Administrative

“45-39500-00 General Reserve Funding 360,296 $ 374,708 $”2025 Budget (Bluewater Villas HOA), page 1, Reserve Accounts

“45-39530-00 Truist Bank Loan Funding Contribution 120,394 120,394”2025 Budget (Bluewater Villas HOA), page 1, Reserve Accounts

“45-39540-00 LLC Shortfall Expense Funding-Prior & Current Yr 60,640 50,555”2025 Budget (Bluewater Villas HOA), page 1, Reserve Accounts

“32 2 Bedroom Oceanfront 0.0066 1,493$ 1,566$”2025 Budget (Bluewater Villas HOA), page 1, HOA Fee schedule (2024 vs 2025 monthly)

“123 Oceanview 0.0038 860$ 902$”2025 Budget (Bluewater Villas HOA), page 1, HOA Fee schedule (2024 vs 2025 monthly)

“51-53000-00 HOA Dues 123,288 141,180”2024 Budget (Bluewater Commercial LLC), page 3, Administrative (LLC pays HOA dues on the 5.20% Commercial Unit)

“He then noted that the Board of Directors hired a third-party company to appraise the property for insurance purposes in 2024, and further that the appraised value was significantly higher than currently presented.”Minutes, Annual Members' Meeting, March 8, 2025, page 2, Insurance Review

“Therefore, he mentioned that the upcoming renewal would reflect the updated increase amount which would have a direct impact on the premium. It was noted that the Board of Directors anticipated an increase and forecasted the increase in the budget for 2025.”Minutes, Annual Members' Meeting, March 8, 2025, page 2, Insurance Review

“Coverage Afforded is All-In, Association has 231 Total Units.”ACORD Certificate of Property Insurance (5/22/2024), page 1, Location of Premises

“2001 S Ocean Blvd, Myrtle Beach, SC 29577 - Limit $24,207,520 / 179 Residential Condo Units + 1 Commercial Condo Unit”ACORD Certificate of Property Insurance (5/22/2024), page 1, Building Values

“PROPERTY: Special Form; Replacement Cost; Coinsurance Waived; Ordinance or Law A Included; Ordinance or Law B/C Combined $250,000”ACORD Certificate of Property Insurance (5/22/2024), page 2, Additional Remarks

“FLOOD: Refer to Separate Flood Declaration for Coverage Evidence”ACORD Certificate of Property Insurance (5/22/2024), page 2, Additional Remarks

“Should the Board of Directors at any time determine, in the sole discretion of said Board of Directors, that the assessments levied are or may prove to be insufficient to pay the costs of operation and management of the CONDOMINIUM, or in the event of emergencies, said Board of Directors shall have the authority to levy such additional assessment or assessments as it shall deem to be necessary.”Master Deed, Article XXVII.C, page 16

“In the event any assessment, installment, or accelerated assessments are not paid within twenty (20) days after their due date, the ASSOCIATION, through its Board of Directors, may proceed to enforce and collect the said assessments against the UNIT owner owing the same in any manner provided for by the Act, including the right of foreclosures and sale.”Master Deed, Article XXVII.G, pages 17-18

“If the Property is not insured or if the insurance proceeds are insufficient to cover the costs of reconstruction, rebuilding costs shall be paid as provided in The Act by all of the Owners directly affected by the damage and each shall be responsible for a share equal to the total cost times a fraction, the numerator of which is one and the denominator of which is the number of UNITS directly affected.”Master Deed, Article XXIV, page 14

“In all Units which are metered separately the utility services shall be paid directly by the Owner of such Unit. However, where more than one (1) Unit is metered by a single meter, the electrical charge shall be pro-rated based upon usage.”Master Deed (Amendment of June 22, 1984), Paragraph 4 adding Article XXVII.M, page 31

“If a budget is adopted by the Board of Directors Which requires assessment against the Dwelling Owners in any fiscal or calendar year exceeding 115% of such assessments for the preceding year, upon written application of 10% of the Dwelling Owners, a special meeting of the Dwelling Owners shall be held upon no less then ten (10) days written notice to each Dwelling Owner, but within thirty (30) days of the delivery of such application to the Board of Directors or any member thereof, at which special meeting Dwelling Owners may consider and enact a revision of the budget, or recall any and all members of the Board of Directors and elect their successors.”By-Laws, Article VI, Section 4(b), page 9

“40-32600-00 Cell Tower Income 30,644 31,563”2024 Budget (Bluewater Commercial LLC), page 3, Income Accounts

“40-30300-00 Front Desk Resort Income 21,390 20,000”2024 Budget (Bluewater Commercial LLC), page 3, Income Accounts

“The amount collected and allocated to the Reserve Fund for Replacements from time to time shall be maintained in A separate account by ASSOCIATION, although nothing herein contained shall limit ASSOCIATION from applying any monies in such Reserve Fund for Replacements to meet other needs or requirements of ASSOCIATION In operating or managing the Project in the event of emergencies, or in the event that the sums collected from the owners of UNITS are insufficient to meet the then fiscal financial requirements of ASSOCIATION”Master Deed, Article XXVII.D, page 17

“Regular assessments shall be due and payable monthly on the first day of each month. Special assessments, should such be required by the Board of Directors, shall be levied in the same manner as hereinbefore provided for regular assessments, and shall be payable in the manner determined by the Board of Directors.”By-Laws, Article VI, Section 4(a), page 8

Who's really in charge?

Typical

Who holds the power the documents hand out: an owner-elected board, or a developer or commercial-unit owner with deed-level rights over rentals, guest services and the building's name.

An owner-elected board runs the Association and developer rights have lapsed, but a 5.20% Commercial Unit holds hotel, food-and-beverage and parking-deck revenue rights under the deed, its operating LLC keeps the cell-tower, front-desk and restaurant income while the HOA covers its shortfall, and the Board can change the Rules unilaterally on 30 days' notice.

StructureOne association

Commercial unitYes, with its own deed rights

On-site operatorHosteeva (introduced in the 2025 minutes as the 'Preferred Rental Agency' partner of Bluewater Commercial, LLC); Wyndham representatives presented a 'Welcome Desk' item; neither is an owner-mandated program

BoardFive directors, all Association members once developer control ended, elected by plurality at the annual meeting (By-Laws Art. III Sec. 3) for staggered two-year terms (By-Laws Art. IV Sec. 1). The 2024 meeting elected two seats by acclamation; the 2025 meeting had six candidates for three seats with a 'Meet the Candidates' day and ballot inspectors. Directors may be removed by a majority of votes present (Art. IV Sec. 3); a director more than 30 days delinquent automatically resigns (Sec. 5). Officers are elected by the Board. Board meetings are open to owners (Art. IV Sec. 6). The management firm (Empress Management, LLC) is entitled to attend all meetings and may act as treasurer (Art. III Sec. 8; Art. V Sec. 8(f)). The Association attorney told the 2024 meeting that collecting three bids on projects is not a requirement (Minutes Mar. 9, 2024, p. 4).

Developer rightsExpired by their own terms. The Grantor could add Phases II-VI without owner consent only until May 1, 1989 (Master Deed Art. III, XXIX); Grantor control of a Board majority ended 120 days after 75% of units were conveyed or five years after the first conveyance, whichever first (Art. XXXII; By-Laws Art. IV Sec. 11); the sales-office use right ended when all units were conveyed (Art. XV). Grantor-reserved rights still require Grantor consent to amend (Art. XXIX) but no live developer rights are evidenced; the 2024 and 2025 minutes show an owner-run board.

Commercial-unit rightsThe Commercial Unit (5.20% interest; restaurant, lounges, outside bar, kitchen, offices, front desk, laundry, meeting rooms, lobby) 'may be utilized for all purposes that any first-class hotel might be utilized for' including a reservation desk, restaurant, lounge and game rooms (Master Deed amendment June 1984, Phase III/IV descriptions; Exhibit A-2/A-3 narratives). Maids' rooms, storage rooms and laundry rooms on every floor are limited common elements of the Commercial Unit. It holds easements for food and beverage service in the common elements at the pools, oceanfront and deck areas and for vending machines (1984 amendment para. 3). It cannot be split and sold as individual units except by Grantor phase amendment (Art. V). The November 1986 amendment let the commercial unit owner build the parking deck at its own cost with easements over the common elements, and empowered the Board to lease the existing parking deck commercially, even at the cost of a temporary or permanent loss of parking use by owners, lessees and guests, with the revenue paid to the commercial unit owner until the new garage cost is recovered. The Commercial Unit has no rental-program monopoly: owners may rent 'for any period of time' (Art. XV) and the Rules say leasing is not a business. Today the Commercial Unit is operated as Bluewater Commercial, LLC, whose shortfall the HOA budget funds ($60,640 in 2024, $50,555 in 2025) and whose partners, event planners, 'Preferred Rental Agency' (Hosteeva) and 'Welcome Desk' (Wyndham representatives) were presented at the 2025 annual meeting. The 2017 Rules still define 'Commercial Unit' as 'the Twenty-Three (23) rental units within Phase III' plus the restaurant, lounge, offices and reception desk (Rules Art. I Sec. 8), a definition that predates the 1984 split of those units into individually owned condominiums, so the Rules' carve-out that the Commercial Unit 'shall retain all rights as set forth in the MASTER DEED' (Art. II Sec. 1) rests on a stale description. The 2024 Bluewater Commercial LLC budget shows the Commercial Unit's income staying with the LLC: Restaurant/Bar Monthly Assessment Income $42,000, Cell Tower Income $31,563, Front Desk Resort Income $20,000, Storage Lockers Income $16,000, Laundry Income $11,000, 3rd Floor Event Income $24,000, 15th Floor $6,000, Tiki Bar $8,000 (total $151,563) against expenses of $182,203, of which $141,180 is the LLC's own HOA dues on the 5.20% Commercial Unit and $26,973 is taxes and fees, leaving the $30,640 shortfall that the HOA budget funds (2024 Budget, p. 3).

VotesOne vote per unit weighted by percentage interest in the common elements (By-Laws Art. II Sec. 2); the Commercial Unit alone carries 5.20%; the 123 oceanview units carry 0.38% each. Majority of total votes decides unless the documents say otherwise; quorum is a majority (51%) in person or by proxy; written proxies allowed; co-owners and corporate owners must file a voting-member certificate or their vote is not counted. Special meetings on request of 25% of votes. A budget more than 115% of the prior year lets 10% of owners force a special meeting to revise it or recall the Board (By-Laws Art. VI Sec. 4(b)). Turnout: 59% represented in 2024, 61% in 2025 (mostly by proxy). Ownership through an LLC, corporation, partnership or trust is expressly contemplated (Rules Art. I Sec. 11; Master Deed Art. XXXIX.C), but a corporate owner must file a certificate naming its voting member or its vote and quorum presence are not counted (By-Laws Art. II Sec. 5).

Changing the deedMaster Deed: proposed by a Board majority or owners of a majority of units, then approved by co-owners holding 67% of the total interest in the common elements, plus affirmative voters' institutional mortgagees if required by law; unanimous owner and mortgagee consent to change percentage interests or the assessment basis; Grantor/lender consent to change their reserved rights (Art. XXIX). Termination requires unanimous owners and lienholders (Art. XXVIII). By-Laws: 51% of the total votes at a duly called meeting (Art. X). Rules: Board alone, 30 days' written notice (Rules Preamble, Art. XI; By-Laws Art. XVII).

Disputes or lawsuitsNo litigation is disclosed. 2024 minutes (p. 4): the attorney advised the Association to pay for garage repairs after a vehicle strike rather than pursue a judgment; owner complaints to Consumer Affairs cost the Association attorney fees; a local pool-chemical lawsuit involved another hotel, not the Association's contractor. 2024 minutes (p. 4): an owner asked about the number of police visits over six months. 2025 minutes (p. 1): a Myrtle Beach police officer attended because of an unruly owner at the prior meeting, and the Board set a $100 fine for anyone who disrupts a meeting. Legal Services budget rose from $6,500 (2024) to $10,000 (2025). No arbitration, mediation or other mandatory dispute-resolution clause appears in the Master Deed, By-Laws or Rules; remedies are court actions, injunctions, fines, amenity suspension and lien foreclosure (Master Deed Art. XXX; By-Laws Art. VIII; Rules Art. X).

What the documents say (17)

“The affairs of the Association shall be governed by a Board of Directors composed of five (5) persons.”By-Laws, Article IV, Section 1, page 3

“Thereafter, all Directors shall be elected for two (2) year terms.”By-Laws, Article IV, Section 1, page 3

“The Owner(s) of each Condominium Dwelling shall be entitled to a vote equal to the percentage of ownership of common elements and limited common elements as reflected in Exhibit "B" of the Master Deed.”By-Laws, Article II, Section 2(a), page 1

“The Amendment shall be approved by the affirmative vote of the voting members casting not less than fifty-one (51%) percent of the total votes of the members of the Association; and,”By-Laws, Article X(2), page 12

“No member shall continue to serve on the Board should he be more than thirty (30) days delinquent in the payment of any assessment or maintenance fee and said delinquency shall automatically constitute a resignation, effective when such resignation is accepted by the Board of Directors.”By-Laws, Article IV, Section 5, page 4

“Further, until one hundred twenty (120) days after seventy-five (75%) percent of the UNITS in the Horizontal Property Regime (including Phases I through VI) have been conveyed to UNIT purchasers, or five (5) years following the conveyance of the first UNIT whichever occurs first, then GRANTOR shall have the right to designate and select a majority of the persons who shall serve as members of the Board of Directors of the Association.”Master Deed, Article XXXII, pages 22-23

“The Commercial Unit designated on Exhibit "B" as C-1 may not be separated for sale as an individual unit. This Commercial Unit (or later, group of UNITS) shall be in the nature of a hotel with individual units to be rented by the owner of the Commercial Unit.”Master Deed, Article V, page 5

“The Commercial Unit may be utilized for all purposes that any first-class hotel might be utilized for and without limiting the foregoing may be used and operated as a reservation desk, offices, restaurant, lounge, game rooms, and other uses as might be found operating in any similar hotel facility.”Master Deed (Amendment of June 22, 1984), Paragraph 1, Phase III description, page 29

“Perpetual Non-Exclusive Easement in Common Elements, is hereby amended by adding thereto that the Commercial Unit shall have easements appurtenant for food and beverage service in the COMMON ELEMENTS located in, on or adjacent to pools, ocean front or deck areas.”Master Deed (Amendment of June 22, 1984), Paragraph 3 amending Article IX, page 30

“C Commercial Unit to include all $1,100,000 .0520 Commercial Units in Phase III above and a restaurant on the 1st floor, lounge on the,14th floor, meeting rooms and lobby on the 2nd floor.”Master Deed (Amendment of June 22, 1984), Exhibit B, Phase I-IV schedule, page 38 (table row; value and percentage columns print mid-line)

“Any of the aforesaid agreements may result in a temporary or permanent loss of usage of said parking garage or parking deck by the unit owners, their lessees, guests, and invitees, and all others who may have a right of usage of said existing parking garage or parking deck.”Master Deed (Amendment adopted November 8, 1986), page 64

“Any revenue generated by any of the aforesaid commercial uses shall be paid over by the association to the commercial unit owner, or its designee, to defray the cost of designing, engineering, and constructing the new parking garage or parking deck to be constructed by the commercial unit owner on other property comprising part of the common elements of Bluewater Villas Horizontal Property Regime.”Master Deed (Amendment adopted November 8, 1986), page 64

“The Board of Directors, may from time to time adopt or amend previously adopted Rules and Regulations governing and restricting the use and maintenance of the Condominium Dwellings provided, however, that copies of such Rules and Regulations, prior to the time the same become effective, shall be posted in a conspicuous place and/or copies of same shall be furnished to each Dwelling Owner.”By-Laws, Article XVII, Section 2, page 13

“A total of Fifty-Nine percent (59%) of the membership was represented, thus meeting the quorum requirement for a members' meeting of fifty-one percent (51%).”Minutes, Annual Members' Meeting, March 9, 2024, page 1

“An officer from Myrtle Beach Police Department was also in attendance due to the unruliness of a prior owner at the previous meeting.”Minutes, Annual Members' Meeting, March 8, 2025, page 1

“He also noted that it was agreed upon to fine $100 for any owner who interrupts or disrupts the meeting based on the events from the prior Board meeting.”Minutes, Annual Members' Meeting, March 8, 2025, page 1

“"Commercial Unit" shall mean the Twenty-Three (23) rental units within Phase III of Bluewater and includes the restaurant, lounge, offices, reception desk areas, etc. as defined in Article V of the Master Deed.”Rules and Regulations (eff. June 1, 2017), Article I, Section 8, page 2

03 Pros and cons

For the owner who runs it themselves.

The same building reads very differently to an owner on the rental program and an owner on Airbnb. This list is for the second one.

Working for you

The Master Deed expressly lets any owner rent 'for any period of time', so nightly and weekly rentals are a deed-level right, not a Board policy (Master Deed, Art. XV, p. 9).
No on-site rental program is required and the Rules expressly contemplate 'OWNERS, tenants, or rental agents' handling leases, so self-managing on Airbnb/VRBO or using any off-site manager is permitted (Rules, Art. V(b), p. 6).
Leasing a unit is explicitly not a 'business' under the residential-use rule (Rules, Art. II Sec. 1, p. 3).
Tenants have the same amenity rights as owners: the pools and fitness center are 'for the exclusive use and enjoyment for OWNERS and tenants', with no wristband, pass or guest-fee program in any document (Rules, Art. VIII, p. 8).
The Leasing Registration Form is required only for leases longer than 30 days, so short-term guests do not need to be registered individually (Rules, Art. V(b), p. 6).
No advertising restrictions: nothing limits use of the Bluewater name, photos or listing sites, and no rental disclaimer is required; the only sign rule bans exterior 'for rent' signs (Rules, Art. II Sec. 17, p. 4).
Owner-elected five-member board with staggered two-year terms, a contested 2025 election (six candidates for three seats, a 'Meet the Candidates' day and ballot inspectors; the two 2024 seats were filled by acclamation) and 59-61% turnout; developer phase and board-control rights lapsed decades ago (By-Laws Art. IV Sec. 1, p. 3; Minutes Mar. 9, 2024, p. 4; Minutes Mar. 8, 2025, pp. 3-4; Master Deed Art. XXXII, pp. 22-23).
Changing the deed-level rental right needs 67% of all ownership interest plus mortgagee consent where required, which is a high bar (Master Deed, Art. XXIX, p. 20).
A reserve study exists and the General Reserve contribution was raised to follow it: $333,114 (2023), $360,296 (2024), $374,708 (2025), about 13% of the budget; the Association attorney noted that Fannie Mae/Freddie Mac rules now require a reserve study every three years (2024 Budget cover letter, p. 1; 2025 Budget, p. 1; Minutes Mar. 9, 2024, p. 3).
No special assessment appears in any budget or minutes; the 2025 dues increase moderated to 4.87% after 14.99% in 2024 (2025 Budget, p. 1).
Dues bundle water/sewer, cable TV, internet/WiFi, trash, pest control (now serviced monthly) and termite bond, a security contract, elevators, fire alarm and an All-In building policy (2025 Budget, p. 1; Minutes Mar. 9, 2024, p. 2; ACORD COI, p. 1).
Annual CPA audit is required and the Association received clean audit opinions in both 2024 and 2025, with audits posted on the owner website (By-Laws Art. VI Sec. 8, p. 10; Minutes Mar. 9, 2024, p. 2; Minutes Mar. 8, 2025, p. 2).
Owners can file ARC requests and work orders, pay dues and pull documents through the association website, convenient for remote owners (Minutes Mar. 9, 2024, p. 5).
A budget increase above 115% lets 10% of owners force a special meeting to revise the budget or recall the Board (By-Laws, Art. VI Sec. 4(b), p. 9).
No local-contact, response-time, housekeeping or linen requirement is imposed on owners anywhere in the documents (Rules, Art. V and IX, pp. 6 and 9).
Buyers get a binding payoff letter: on request the Association must furnish a statement of the seller's assessment status that the purchaser may rely on, and the By-Laws make the treasurer's status reports reliable by transferees (Master Deed, Art. XXVII.L, p. 19; By-Laws Art. V Sec. 8(d), p. 7).
Holding the unit in an LLC, corporation, partnership or trust is expressly contemplated; the only extra step is filing a voting-member certificate with the Secretary (Rules, Art. I Sec. 11, p. 2; By-Laws Art. II Sec. 5, p. 2).
No arbitration or mandatory mediation clause binds owners, so an owner keeps ordinary court remedies (Master Deed, Art. XXX, pp. 21-22; By-Laws Art. VIII, pp. 10-11).

Watch-outs

Insurance is the dominant cost and still climbing: budgeted $528,414 (2023) to $797,500 (2024, +51%) to $900,000 (2025), now 31.6% of the total budget, and the 2024 cover letter called it 'by far the most impactful line item' (2024 Budget cover letter, p. 1; 2025 Budget, p. 1).
More premium pressure is pending: a 2024 third-party appraisal found the insured value 'significantly higher than currently presented', so the 2025 renewal carries higher values and premium; the broker also noted new coastal carriers cap limits near $5 million each (Minutes Mar. 8, 2025, p. 2; Minutes Mar. 9, 2024, p. 2).
Wind/named-storm deductible is not readable on the OCR'd certificate and flood is on a separate declaration not supplied; owners bear the deductible share for items they maintain and any uninsured rebuilding cost is split equally among directly affected units (ACORD COI, pp. 1-2; Master Deed Art. XXI, p. 11 and Art. XXIV, p. 14).
Dues rose 14.99% in 2024 and 4.87% in 2025; a 2-bedroom oceanfront went from $1,299 to $1,566 a month in two years and an oceanview 1-bedroom from $748 to $902 (2024 Budget, p. 2; 2025 Budget, p. 1).
The HOA budget subsidizes the Commercial Unit's operating entity: 'Bluewater LLC Shortfall Expense Funding' of $60,640 (2024) and $50,555 (2025), about 2% of dues, after the LLC ran a $30,000 year-to-date shortfall in 2023 (2024 Budget cover letter, p. 1; 2025 Budget, p. 1).
Assessments include $120,394 a year of 'Truist Bank Loan Funding', an existing association loan whose purpose, balance and term are not stated in these documents (2024 Budget, p. 2; 2025 Budget, p. 1).
The Commercial Unit holds hotel-style rights, food-and-beverage easements at the pools and oceanfront, and the 1986 amendment lets the Board lease the parking deck commercially with revenue paid to the commercial unit owner even if owners and guests lose parking (Master Deed 1984 amendment, pp. 29-30; 1986 amendment, pp. 63-64).
Only the whole unit may be rented, no exterior 'for rent' signs, and copies of all leases must be deposited with the Association (Rules, Art. V(a) and (d), p. 6; Art. II Sec. 17, p. 4).
Guests and tenants may not bring pets at all, which rules out pet-friendly listings (Rules, Art. II Sec. 16(a), p. 4).
No grilling of any kind on balconies, and smoking (including vaping) only in designated areas or rooms, both common guest-complaint triggers (Rules, Art. II Sec. 21-22, p. 5).
Owners are 'ultimately responsible' for tenant fines: up to $100 per day for general violations, $500 for health and safety, $50 per pet violation, plus suspension of amenities, loss of cable and all enforcement costs including attorneys' fees (Rules, Art. V(c), p. 6; Art. X, p. 9; Exhibit A, p. 11).
The Board can rewrite the Rules, including the leasing article and fine schedule, on 30 days' notice without an owner vote (Rules, Preamble, p. 1; Art. XI Sec. 1, p. 9).
Pest control now treats units monthly, access is required (last year the contractor could get into only about 25% of the Villa units), the Board adopted a policy to fine owners whose units cannot be accessed, and owners using their own exterminator must provide proof (Minutes Mar. 9, 2024, pp. 2-3).
Smart locks or lock changes must preserve Association access, and the Association may require a key on deposit (Rules, Art. II Sec. 20, p. 5; Master Deed, Art. XVIII, p. 10).
Renovation season is restricted: no major construction from Memorial Day to Labor Day, work only 8-6 Monday-Saturday, and contractors need a management permit, license proof and insurance certificates (Rules, Art. IV, pp. 5-6).
Owners maintain windows, sliding doors, HVAC, appliances and the balcony floor, walls and railings at their own cost, and the Association can do the work and lien the unit if they do not (Master Deed, Art. XXI, p. 11; Rules, Art. II Sec. 6, p. 3).
Aging infrastructure: elevator maintenance was raised 'due to the age of the elevators', a fire-code egress taping project was required by end of 2023, and balcony painting is expected in five to six years (2024 Budget cover letter, p. 1; Minutes Mar. 9, 2024, p. 3).
Reserve balances are not in the minutes text (financial exhibits were not included) and the reserve study was not supplied, so reserve adequacy cannot be verified from this set (Minutes Mar. 9, 2024, p. 3; Minutes Mar. 8, 2025, p. 2).
How in-unit electricity is billed is unclear: the HOA budgets $200,000 for electricity, the 1984 amendment allows several units on one meter with pro-rated charges, and the 2025 meeting discussed electricity 'billing adjustments' (Master Deed 1984 amendment para. M, p. 31; Minutes Mar. 8, 2025, p. 2).
Parking tags are issued to owners; the documents do not say how short-term guests get one or how many vehicles a unit may park (Rules, Art. VI Sec. 1, p. 7).
Owner-meeting friction: a police officer attended the 2025 annual meeting because of an unruly owner and a $100 fine for disrupting meetings was set; the attorney also flagged owner complaints to Consumer Affairs as costing the Association legal fees (Minutes Mar. 8, 2025, p. 1; Minutes Mar. 9, 2024, p. 4).
Transfers and resale: a buyer by voluntary conveyance is jointly liable with the seller for unpaid assessments, and delinquencies wiped out by a lender foreclosure are absorbed by all owners as a common expense (Master Deed, Art. XXVII.K-L, p. 19).
Attorney's fees run one way: if the Association sues an owner over a default and wins it recovers its fees, but the deed says 'in no event shall the owner of any UNIT be entitled to such attorney's fees', overriding the By-Laws' prevailing-party clause (Master Deed, Art. XXX.C, p. 22; By-Laws Art. VIII Sec. 3, p. 11 and Art. XVII Sec. 3, p. 13).
The Board may spend replacement-reserve money on emergencies or operating shortfalls, and reserve contributions are excluded from the 115% budget-increase test, so the owner recall safeguard does not cover reserve-driven increases (Master Deed, Art. XXVII.D, p. 17; By-Laws Art. VI Sec. 4(b), p. 9).
The Commercial Unit's revenue (restaurant/bar assessment $42,000, cell tower $31,563, front desk $20,000, storage lockers $16,000, events $24,000, laundry $11,000) stays with Bluewater Commercial, LLC, whose largest expense is its own HOA dues of $141,180; because the HOA then funds the LLC's shortfall, part of the Commercial Unit's dues effectively flows back out of the other owners' assessments, and who owns the LLC is not stated in these documents (2024 Budget, p. 3; 2024 Budget cover letter, p. 1; Minutes Mar. 8, 2025, p. 3).
The 2017 Rules still define the 'Commercial Unit' as 23 rental units plus the restaurant and reception desk, a description that predates the 1984 split of those units into individually owned condos, while reserving to it 'all rights as set forth in the MASTER DEED' (Rules, Art. I Sec. 8, p. 2 and Art. II Sec. 1, p. 3).
A guest's car can be towed without notice if its alarm sounds unattended for more than 15 minutes, and vehicles left in an unassigned space more than 14 days are tagged and towed (Rules, Art. VI Sec. 9-10, pp. 7-8).

Unit type	Per month	Per year
Commercial Unit (5.20% interest, 1 unit)	$12,337	$148,044
3 Bedroom Oceanfront (0.92%, 1 unit)	$2,183	$26,196
2 Bedroom Oceanfront (0.66%, 32 units)	$1,566	$18,792
Villa I 2 Bedroom (0.43%, 8 units)	$1,020	$12,240
1 Bedroom Oceanfront (0.43%, 23 units)	$1,020	$12,240
Oceanview 1 Bedroom (0.38%, 123 units)	$902	$10,824
Villa I 1 Bedroom (0.28%, 20 units)	$664	$7,968
Villa II 1 Bedroom (0.30%, 24 units)	$712	$8,544

Bluewater Resort.

The documents behind this page.

What the documents decide
before your first guest books.

Can you rent it your way?

Will your guests be treated like guests?

How much work lands on you?

Is the money healthy?

Who's really in charge?

For the owner who runs it themselves.

Working for you

Watch-outs

What you pay, and where it goes.

Regular assessments, 2025

What the dues cover

Where the budget goes

What to put in the house manual.

What to ask the association for.

Have the documents read
for the building you are weighing.

Bluewater Resort.

The documents behind this page.

What the documents decidebefore your first guest books.

Can you rent it your way?

Will your guests be treated like guests?

How much work lands on you?

Is the money healthy?

Who's really in charge?

For the owner who runs it themselves.

Working for you

Watch-outs

What you pay, and where it goes.

Regular assessments, 2025

What the dues cover

Where the budget goes

What to put in the house manual.

What to ask the association for.

Have the documents readfor the building you are weighing.

What the documents decide
before your first guest books.

Have the documents read
for the building you are weighing.