Caravelle Resort HOA Risk Assessment: Program-leaning

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.

STR allowed 'on any basis' with no minimum stay, no registration and no off-site advertising rule, self-management and any manager permitted; but on-site signage/advertising, front-desk, key hand-off and rental-management services on the common elements are deed-reserved to the commercial unit, the garbled §4.5 proviso appears to bar running a rental office from inside the unit, and each booking needs an HOA-issued parking pass.

Short-term rentalsAllowed

Must use on-site programNo

Owner may rent it personallyYes

Off-site manager allowedYes

Owner-use limitsNone stated; residential units must be used for residential purposes only, time-share ownership is prohibited, and the Master Deed proviso permits an owner to rent 'on any basis so long as' a condition that is garbled in the OCR; the legible fragments refer to keys/tenants and an 'office for renting' the Unit and end 'This conduct is expressly prohibited', so the proviso appears to bar running a rental office or key hand-off from inside the Unit (reading uncertain, MD §4.5, file p.19).

RegistrationNo rental registration with the association is stated. Owner must give the Association a copy of the unit key or door code ($100 fine if not), provide proof of HO-6 insurance every year, obtain HOA/management-company parking passes for each rental (completed with unit number, reservation number or coded unit number and a departure date; one pass and one space per rental) and supply 'The Caravelle Resort' pool wristbands issued by the Association or the hotel. Guests need the fitness-center door code from the owner or rental agency. The Rules only encourage (do not require) owners to post the Rules in the unit and 'to attach a copy to any rental or lease agreement' (Rules 2025, file p.2).

Advertising rulesNo 'For Sale' or 'For Rent' signs, advertising or displays anywhere on the Regime Property except as the Board allows; Commercial Unit C-1 holds a perpetual exclusive easement for all signage, advertising racks, information centers and 'For Rent' signs on unoccupied units in lobbies, hallways, pool decks and parking areas. No rule in these documents restricts use of the resort name or photos in off-site listings, but the Master Deed bars anyone except the Commercial Unit owners from running rental management services, key pick-up/drop-off, a front desk or concierge on the common elements, and in-unit 'Unit rental management calls' are carved out of the permitted home-business activities.

Vote to change rental rulesMaster Deed and By-Laws: affirmative vote of owners holding two-thirds (2/3) of the Percentage Interest (MD §14.2); Article IV use restrictions (including §4.5 rentals) cannot be amended without the Grantor's consent (MD §4.9) and §4.5 not without the consent of all Commercial Unit owners; the §5.4 ban on commercial activity by anyone other than the Commercial Unit owners cannot be amended without the consent of all Commercial Unit owners and the Grantor; rules affecting the Commercial Unit are not binding on it without its written consent (By-Laws §7.2).

What the documents say (17)

“The Residential Units shall be used for residential purposes only; provided, however, an Owner may rent his or her Unit on any basis so long as [remainder of proviso illegible in OCR]”Master Deed, Article IV §4.5, file p.19

“The restrictions contained in this Section 4.5 may not be amended without the consent of all of the Owners of the Commercial Units.”Master Deed, Article IV §4.5, file p.19

“No Owners shall engage in or permit time share ownership of a Residential Unit.”Master Deed, Article IV §4.6, file p.19

“Any Property Owner may delegate his or her right of enjoyment to the members of his or her family, business, and social invitees and an Owner shall be deemed to have made such a delegation to guests occupying his or her Unit for rent.”Master Deed, Article V §5.3.a, file p.21

“Except as otherwise permitted by easements reserved or granted within or prior to this Master Deed, there shall be no commercial activities in or on the General Common Elements or the Limited Common Elements of any Residential Unit, including, but not limited to, operation of rental management services, key pick up and drop off, front desk, concierge, the furnishing of cable, movie, internet, wireless broadband, and telephone services to Residential Units, shops, stores, sales, vending, gaming machines if permitted by law, cell towers, guest laundries, restaurant, lounge, ice cream shop, pool/snack bar, game room, real estate sales, accommodations, health spa, night clubs or any combination of such uses.”Master Deed, Article V §5.4, file p.21

“Only the Owners of the Commercial Units shall be entitled to conduct commercial activities on the Regime Property which shall be generally limited to those areas of the Commercial Units or Limited Common Elements for the Commercial Units except as otherwise permitted by specific easement granted within or prior to this Master Deed.”Master Deed, Article V §5.4, file p.21

“The Owner of Commercial Unit C-1 shall be entitled to use and exclusively delegate the use of all Limited Common Elements appurtenant to Commercial Unit C-1 to its employees, agents, contractors, and assigns for any commercial purposes of such Owner, including, without limitation, purposes of operating a property management business within the Building and for vending.”Master Deed, Article V §5.5.b, file p.22

“No "For Sale" or "For Rent" signs, advertising, or other displays shall be maintained or permitted on any part of the Regime Property except at such location and in such form as shall be determined by the Board or as otherwise permitted by easements reserved or granted within this Master Deed.”Master Deed, Article IX §9.1.b, file p.33

“This Article shall not be construed to prevent or prohibit a Property Owner from maintaining his personal professional library, keeping his personal business or professional records or accounts, handling his personal business or professional telephone calls (other than Unit rental management calls), or conferring from time to time with business or professional associates, clients, or customers in his Unit.”Master Deed, Article IX §9.1.l, file p.35

“The Regime Property shall be subject to a non-exclusive licensable easement reserved in favor of Grantor and granted in favor of the Owner of Commercial Unit C-1, and their employees, agents, lessees, independent contractors, and invitees for ingress, egress, construction, and occupation of the Regime Property for purposes of exhibiting, renting, and selling the Units and other real estate in the vicinity of the Regime Property as well as to perform ancillary commercial services for the benefit of Owners and the occupants of the Units.”Master Deed, Article IX §9.7, file p.38

“The Owner of Commercial Unit C-1 shall have the exclusive right to control any moveable type located upon any signage within the Regime.”Master Deed, Article IX §9.8, file p.39

“It is the responsibility of each Owner to ensure that family members, guests, tenants, and Rental Agents are made aware of and comply with all Rules of the Association.”Rules and Regulations recorded April 10, 2025, file p.2

“Each unit rental is limited to one (1) parking space per unit and the issuing of one (1) parking pass only. Generic parking passes issued by 3rd parties (ie: AirBnb, Rental Management, etc.) are not valid/acceptable.”Rules and Regulations recorded April 10, 2025, PARKING, file p.4

“Caravelle Rental Program versus the Off Rental as it relates to many matters; Parking, amenities, fees etc.”Annual Meeting Transcript February 24, 2023, file p.2

“That fee is being charged by Caravelle Properties to guests whom book through the hotel rental program. The Association cannot tell Caravelle Properties how to operate their business. Owners and other owner management companies are free to decide whether to charge their guests, or not as well.”Annual Meeting Transcript February 24, 2023, Parking, file p.3

“Furthermore, Rules and Regulations shall not discriminate against persons who are delegates pursuant to Section 5.3.a of the Master Deed.”By-Laws (Master Deed Exhibit E), Article VII §7.2, file p.94

“Each unit owner is encouraged to post a copy of the Rules and Regulations in their unit(s) as a courtesy for their occupants and guests, and to attach a copy to any rental or lease agreement.”Rules and Regulations recorded April 10, 2025, file p.2

Will your guests be treated like guests?

Typical

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.

Off-program guests get every pool, hot tub, sun deck and the fitness center on equal terms, but the owner must source resort wristbands (Association or hotel) and an HOA parking pass per booking (one space per rental), hand out the fitness-center code, and there is no front desk for them.

Amenities for your guestsSame as program guests

Wristbands & parking passesPool wristbands printed 'The Caravelle Resort' are required year-round and are provided by either the Association or the hotel; persons without one are removed. Parking: one hung Caravelle-logo pass per rental obtained from the HOA/management company, completed with unit number, reservation number and departure date; one space per rental; generic Airbnb/rental-management passes are invalid; motorcycles only in the overflow garage across the street; neighboring properties' owners/guests may not park. No pass or wristband cost is stated. Owner passes must also show the unit number and an expiration date and be renewed each year (Minutes 2023, p.3). The hotel program charges its own guests a parking fee; owners and other managers are free to charge or not (Minutes 2023, p.3). Off-site 'Adjacent Unit' guests admitted under the C-1 pool easement may not use the pools and decks between 9:30 p.m. and 8:30 a.m. (MD §9.13, file p.41).

Check-inowner handles (no front-desk service for off-program guests; the Master Deed reserves front desk, key pick-up/drop-off and concierge to the Commercial Unit owners; one lockbox is permitted below the door handle and the fitness-center door code is 'provided by the rental agency or the unit owner')

TrashTrash chutes are general common elements inside rooms the Commercial Unit C-1 owner may lock, but it must keep trash disposal available to all owners and guests at convenient times on every floor; the dumpster area is accessible to all owners for household trash; bulk items (furniture, mattresses) must be removed from the property by the owner at the owner's expense or a fine is levied; nothing may be left in hallways or stairwells.

ElevatorsFour main elevators plus a service elevator are Association common elements (MD §3.6, §7.5); no vendor-elevator or move-in restriction is stated; luggage carts must be returned to the ground floor and may not be kept in units or used by unit cleaning crews.

Housekeeping & linenOwner-arranged. Soiled towels/linens, beach chairs, wagons etc. may not be left outside unit doors or in common areas; cleaning crews may not use the luggage carts; towels may be draped on balcony furniture or a small freestanding rack but never on railings; the Commercial Unit C-1 owner's janitorial and maid carts are expressly allowed on common elements.

What the documents say (13)

“Wrist bands provided by either the Association or the hotel are required and enforced year round and must have "The Caravelle Resort" printed on the band. Each person must wear a pool wrist band at All Times when in the pool areas. Person(s) without a wrist band is not permitted and will be removed from the pool areas.”Rules and Regulations recorded April 10, 2025, POOL FACILITIES, file pp.2-3

“Pool Hours: Indoor (7 Floor) and Outdoor Pools are open daily from 8:30 AM to 9:30 PM. When pools are closed, NO access and/or use of the pools is permitted.”Rules and Regulations recorded April 10, 2025, POOL FACILITIES, file p.2

“Caravelle Resort Hotel Fitness Center is an exclusive amenity to the Unit Owners and all Guests with Accommodations in this Building. Owners and guests of surrounding properties are not permitted.”Rules and Regulations recorded April 10, 2025, FITNESS CENTER, file p.3

“A door code is required to gain entry. This code is provided by the rental agency or the unit owner.”Rules and Regulations recorded April 10, 2025, FITNESS CENTER, file p.3

“Oceanside garage and overflow Garage across the street is exclusive to Owners and Guests of the main building, The Caravelle Resort, only.”Rules and Regulations recorded April 10, 2025, PARKING, file p.4

“A valid hung parking tag (Caravelle Logo Parking Pass) obtained from the HOA/Management Company (properly completed with unit number, reservation number or coded unit number and a set departure/ expiration date) must be visibly displayed at all times with ALL information clearly visible through the front windshield of the vehicle (hung on rear view mirror or on the dashboard).”Rules and Regulations recorded April 10, 2025, PARKING, file p.4

“The Owner of Commercial Unit C-1 may restrict access to such rooms served by such trash chutes, however, in the event of such restricted access, the Owner of Commercial Unit C-1 must continue to make trash disposal available to all Unit Owners, and their guests, at convenient times and on all floors of the Building served by such trash chutes.”Master Deed, Article V §5.5.b, file pp.22-23

“Owners were informed that the dumpster area is accessible to all owners for trash disposal and were provided guidance on gaining access. The dumpster is designated strictly for household trash. Owners are responsible for removing bulk items, such as furniture and mattresses, either personally or via their vendors.”Annual Meeting Transcript February 28, 2025, Dumpster Area Access & Usage, file p.3

“Use of luggage carts by Unit Cleaning Crews is strictly prohibited.”Rules and Regulations recorded April 10, 2025, LUGGAGE CARTS, file p.5

“At no time may the number of Permitted Units exceed one hundred fifty (150) without the prior written consent of the Board of Directors of the Association.”Master Deed, Article IX §9.13 Pool and Deck Amenities Easement, file p.41

“Pool wristbands are required year-round. Nobody should be using the pools and amenities at any time during the year, unless they are a guest or owner of Caravelle Resort, or are permitted access to the pools from a neighboring property through the onsite rental, of which our Association receives monetary compensation from Caravelle Properties.”Annual Meeting Transcript February 24, 2023, Pool Wristbands, file pp.3-4

“Use of the Regime Pool and Deck Amenities by the occupants and guests of Permitted Units pursuant to this grant between the hours of 9:30 p.m. and 8:30 a.m. is expressly prohibited.”Master Deed, Article IX §9.13, file p.41

“Because units are sold all the time, no owner should have an unspecified end date. As such, owners will need to have a new pass each year - this is consistent with other properties in the area as well.”Annual Meeting Transcript February 24, 2023, Parking, file p.3

How much work lands on you?

Typical

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.

Normal hosting plus a key/door-code deposit, per-booking HOA parking passes, annual HO-6 proof, mandatory monthly pest entry, bulk-trash hauling, door painting and $100/$250 fines (guest smoking = eviction and owner fine, violations can escalate to self-help or a judicial-sale action), but no local-contact or response-time rule and ordinary trash chutes/dumpster access.

Locks & keysOwner must provide the Association a copy of the unit key or door code ($100 fine for failure; the Master Deed also lets the Association charge the cost of making a key if none is deposited). Exactly one lockbox is allowed, placed directly below the main door handle; no other signs, stickers or decorations on the exterior door; owner may add a kick plate and must keep the door clean and painted the specified color.

FinesRules: 1st offense warning with time to correct, 2nd offense $100, each additional offense $250, repeatable until corrected, collected like regime fees; 30-day written appeal to the Board. Guest or tenant smoking/vaping in any common area, balcony or garage means immediate eviction without refund and a fine to the owner. Unpaid fines after 45 days allow power disconnection to the unit with a $250 disconnect/reconnect fee. Master Deed: delinquent assessments bear 18% interest plus a $50 late fee after 30 days, electricity may be cut off 20 days after a missed assessment, and the owner is liable for damage caused by tenants and guests. By-Laws allow per-day fines, suspension of voting and amenity rights, and self-help enforcement with attorney's fees charged to the owner. Master Deed §9.4 goes further: after notice, a hearing and failure to correct, the Board may give a 10-day notice terminating the owner's right to occupy the unit and sue for a decree ordering the unit sold at judicial sale, with all costs and attorney's fees taxed to the owner and self-help abatement at the owner's expense (file pp.37-38).

Contractors & vendorsUnit cleaning crews may not use the luggage carts. Any structural, plumbing or electrical modification needs Board approval; dishwashers, washer/dryers, ice makers/water lines and garbage disposals are prohibited. Monthly pest-control entry is mandatory and refusing entry is fineable. Discarded furniture and bulk items must be hauled off-site by the owner or the owner's vendor. Window treatments must show a uniform white backing from outside (MD §9.1.n).

AlsoAnnual proof of HO-6 insurance to the Association. Owner responsible for painting/maintaining the unit entry door (Sherwin Williams KEM4000 in Orange) or the Association does it at the owner's cost plus an admin fee. Dues cover electricity, water/sewer, cable/internet, pest control and the master policy, so no in-unit utility set-up. Parking passes and pool wristbands must be sourced from the HOA/hotel for every guest. The Rules say no lifeguard is on duty, the fitness center (6 AM-10 PM) code must not be shared, and the 2025 meeting discussed posting a 'missed unit list' on the HOA website after each monthly pest service (Rules 2025, pp.2-3; Minutes 2025, p.3).

What the documents say (16)

“LOCKS — All owners must provide a copy of a key or door code to their unit to the Association. Failure to do so may result in $100 fine.”Rules and Regulations recorded April 10, 2025, LOCKS, file p.6

“To maintain uniformity, no signs, stickers, lockboxes, decorations, etc., may be attached to any exterior unit door/facing with the exception of one (1) lockbox that must be placed directly below the main handle on the door.”Rules and Regulations recorded April 10, 2025, EXTERIOR ENTRY FACING/ DOORS, file p.6

“Violation of this policy by guests or tenants at the property will result in IMMEDIATE EVICTION from the facility without refund for their accommodations and the unit owner will incur a fine. Violations of this policy by any owner will also result in a fine.”Rules and Regulations recorded April 10, 2025, non-smoking policy, file p.2

“1st Offense — Violation/warning notice issued (including timeframe to correct) No fine is assessed. 2nd Offense/Violation - $100.00 fine. Additional Offense/Violation - $250.00 per occurrence.”Rules and Regulations recorded April 10, 2025, FINE STRUCTURE, file p.6

“The HOA reserves the right to disconnect power to an individual unit if fines are not paid within 45 calendar days of the initial billing. A disconnect/reconnect fee of $250.00 will be charged to the owner if power has been disconnected.”Rules and Regulations recorded April 10, 2025, FINE APPEAL PROCESS, file p.6

“Owners and Guests are prohibited from denying entry to their Unit to perform treatment services. Fines may be assessed if service is denied.”Rules and Regulations recorded April 10, 2025, PEST CONTROL, file p.2

“ALL OWNERS are required to remove all discarded furniture/bulk items from the property at their own expense. Non-compliance with this policy will result in a fine to the unit owner.”Rules and Regulations recorded April 10, 2025, REFUSE, file p.4

“Owners are prohibited from adding appliances (ie: dishwashers, washer/dryers, ice makers/water lines, etc.) to the interior of Unit. Owners are prohibited from adding garbage disposals in the Units.”Rules and Regulations recorded April 10, 2025, UNIT MODIFICATIONS, file p.4

“HOA INSURANCE ~ All owners must obtain HO6 Coverage for their units and provide proof of coverage to the Association each year.”Rules and Regulations recorded April 10, 2025, file p.6

“When in default, the delinquent assessment or delinquent installment thereof due to the Association shall bear interest at the rate of eighteen (18%) percent per annum until such delinquent assessment or installment thereof, and all interest due thereon, have been paid to the Association. Further, a late fee of $50.00 shall be assessed for each installment not paid within thirty (30) days after the due date thereof.”Master Deed, Article VI §6.2.f, file p.27

“THE ASSOCIATION IS HEREBY GRANTED THE RIGHT, AT ANY TIME ANY ASSESSMENT, INSTALLMENT OR ACCELERATED INSTALLMENT IS NOT PAID WITHIN TWENTY (20) DAYS AFTER ITS DUE DATE, TO TERMINATE ELECTRICAL UTILITY SERVICE TO THE DELINQUENT OWNER'S UNIT.”Master Deed, Article VI §6.4, file p.28

“Each Property Owner shall be responsible for the conduct of his or her tenants, guests, agents, and members of his or her household.”Master Deed, Article IX §9.1, file p.33

“To facilitate entry in the event of any such emergency, the Owner of each Residential Unit, if required by the Board, shall deposit, under the control of the Board or its designee, a key to such Unit.”Master Deed, Article IX §9.6, file p.38

“It was clarified that owners are responsible for painting and maintaining their doors and frames.”Annual Meeting Transcript February 28, 2025, Door Painting Responsibilities & Color Details, file p.3

“the Board shall have the power to issue to the defaulting Property Owner a ten (10) day notice in writing to terminate the rights of the said defaulting Property Owner to continue as a Property Owner and to continue to occupy, use, or control his Unit and thereupon an action in equity may be filed by the Board against the defaulting Property Owner for a decree declaring the termination of the defaulting Property Owner's right to occupy, use, or control the Unit”Master Deed, Article IX §9.4, file p.37

“Each day during which a violation occurs or continues may be deemed a separate offense.”By-Laws (Master Deed Exhibit E), Article VII §7.3, file p.94

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.

No special assessment yet, 2026 insurance fell 45%, dues rose only ~3% and inclusions are strong, but the 1950s-90s building has no reserve study, the budgeted reserve transfer was $0 actual in 2022, 2023 and Q1 2025, the replacement fund fell to $669K against a $3.35M budget, 2024 closed with a $60K operating loss, $400K garage and repaint exposure is flagged, and the 2025-26 wind deductible of 3%/$100K minimum passes to owners.

2026 budget$3,350,805

Dues change+3.0% on the year

Reserves4% of budget

Reserve balance$669,359

Reserve studyNone in the set

Special assessments2023 none levied; warned Board told the 2023 annual meeting that repainting the building 'could result in a special assessment to the owners' (Minutes 2023, file p.3).; 2024 none levied; exposure ~$400,000 Garage structural repairs were expected to exceed the $214,000 capital budget and 'potentially reaching around $400,000' (Minutes 2024, file p.3).; 2022 none levied; reserve line unfunded The 2022 P&L shows 'RE - Reserve Funding' budgeted at $385,439 but $0 actual, and 2023 budgeted $31,990 with $0 actual, while capital projects ran $252,159 (2022) and $272,403 (2023); Q1 2025 actual reserve funding was also $0 against a $7,305 budget (Packet 2023, p.13; Packet 2024, p.16; Balance Sheet 3/31/2025, p.3).

InsuranceInsurance expense trend: 2022 actual $804,433 (budget $790,000); 2023 budget $963,000, actual $1,018,271; 2024 budget $1,339,200 (+39%); 2025 budget $1,339,200 (41% of the $3.28M budget), Q1 2025 actual $277,085 vs $334,800 budget; 2026 budget $740,250 (-44.7%, 22% of budget) alongside a carrier change from Lexington to Tokio Marine Specialty with a higher $53.3M limit. The association finances premiums (Premium Insurance Financing liability $124,628 at 12/31/2022, $98,320 at 12/31/2023, $0 at 3/31/2025; interest budget $18,000/yr). Other 2025-26 coverage: general liability $2,000,000 aggregate, $5,000,000 umbrella, $1,000,000 D&O, crime $1,000,000, boiler & machinery $48,777,064 ($5,000 deductible), ordinance & law A included with B/C combined $250,000, no inflation guard, 100% replacement cost, no coinsurance. Unit owners must carry their own HO-6; betterments and improvements are not covered by the master policy. Hurricane Ian claim (2022) ~$99,000 with a $25,000 deductible expensed; ~$25,905 still receivable at 3/31/2025. Master Deed §11.2 requires each owner's HO-6 (contents, improvements and liability) and a current copy to be filed with the Association; §11.5 sets liability minimums of $1,000,000 per person and $3,000,000 per occurrence.

Wind deductible2022 certificate (Lexington Insurance Company): building deductible $25,000, wind $25,000, AOW $25,000, earthquake $25,000. 2025-26 certificate (Lexington): building/basic deductible $10,000, wind 3% with $100,000 minimum, a second wind-related line whose label is illegible in the OCR also reads 3% with $100,000 minimum, AOW $100,000, earthquake $25,000. 2026-27 certificate dated 3/20/2026 lists only a Tokio Marine Specialty Insurance Company property policy (10/26/2025-10/26/2026, a $53,342,000 limit printed beside it) and the two NFIP policies, and prints no wind deductible, so the current wind deductible is unstated; the building limit was $41,045,674 in 2022 and 2025-26. Under MD §11.7 and §12.1.c a loss within the deductible is paid by the party who would be liable without insurance and any shortfall is a Common Expense, so a storm deductible is passed to owners.

FloodNFIP policies with American Bankers Insurance Company of Florida, flood zone VE/AE. Residential condo building (RCBAP): $32,500,000 building / $0 contents, $1,250 deductible, 3/18/2026-3/18/2027, total paid $56,951 after a $144,883 annual-increase-cap discount and $63,682 CRS discount against a $191,240 full-risk premium (replacement cost $34,870,000). Commercial out-building: $500,000 building, $2,000 deductible, 7/23/2025-7/23/2026, $14,743 (full-risk $14,121 plus fees; $1,879 cap discount). Master Deed §11.1 requires flood coverage 'if reasonably available'. The residential declarations are rated for 130 units (the regime has 349) and carry the standard 'Coinsurance penalty may apply' warning; $32,500,000 of building coverage is about 93% of the $34,870,000 replacement cost shown.

DelinquencyRegular assessments receivable $104,881.61 at 3/31/2025 (up from $83,439.34 at 12/31/2024) against an $87,893.69 allowance for doubtful accounts; $29,306 receivable / $38,827 allowance at 12/31/2023; bad debt expense $24,171 in 2023, budgeted $15,000/yr. Policy: legal counsel retained and liens placed on units over 90 days delinquent; 18% interest, $50 late fee, electricity cut-off and lien foreclosure available. Fines/late-fee income budgeted $2,600-$3,500/yr. On a sale the Association must furnish a statement of assessment status to the purchaser, but a buyer in a voluntary conveyance is jointly and severally liable with the seller for unpaid assessments (MD §6.8, file pp.29-30); in a lien foreclosure the Association may collect fair rental value from the delinquent owner and have a receiver appointed (MD §6.5, file p.28); a monthly installment is delinquent on the 15th (By-Laws §5.9.f, file p.92).

What the documents say (25)

“an overall increase of 13.3% was unanimously approved for the homeowner monthly dues beginning, January 2024. It is important to note that there is no modification in the regular assessments however, the insurance assessments did increase and are subject to change based on the finalization of our insurance costs for 2024.”HOA letter dated November 29, 2023, 8d9069ad file p.2

“The primary driver behind this adjustment is the anticipated rise in insurance costs, to fund current year and future years' expected operating cost increases and necessary capital expenditures.”HOA letter dated November 29, 2023, 8d9069ad file p.2

“As a result of that meeting, the Board approved a decrease of 10% in the homeowner monthly dues for 2022.”HOA letter (2022 dues), e6fbb993 file p.1

“As a result of that meeting, the Board approved not to increase the homeowner monthly dues for 2025.”HOA letter (2025 dues), 39c5d88a file p.1

“The cost of insurance for 2025 will continue to be included in your homeowners' monthly dues.”HOA letter (2025 dues), 39c5d88a file p.1

“an overall increase of 6.6% was unanimously approved for the homeowner monthly assessments. The increase was necessary to address the increase in the projected cost the Association's insurance program.”Annual Meeting Transcript February 24, 2023, 2023 Approved Operating Budget, file p.2

“[The management company's president] highlighted the association was operating in an excess of $166,000 and the insurance program budgeted for 2023 was set at $963,000, which is projected to increase to $1,339,200 in 2024.”Annual Meeting Transcript February 23, 2024, file p.1

“Though the preliminary budget of $214,000 is in place, it is anticipated that the garage repairs could exceed initial estimates, potentially reaching around $400,000.”Annual Meeting Transcript February 23, 2024, file p.3

“Painting the building is expensive and unfortunately not in the budget at this time and is in the planning stage for a future Capital Expense. This expense could result in a special assessment to the owners.”Annual Meeting Transcript February 24, 2023, Building Paint Color, file p.3

“Accumulated funds, which aggregate approximately $669,359 at December 31, 2023, are held in separate accounts and are generally not available for operating purposes. At December 31, 2023, the Association had not completed a study to estimate the remaining useful lives and the current replacement cost of the common property components.”Annual Meeting Packet February 23, 2024 (audited 2023 financial statements, Note D), packet p.42

“Therefore, amounts designated for future repairs and replacements may not be adequate to meet future needs.”Annual Meeting Packet February 23, 2024 (audited 2023 financial statements, Note D), packet p.42

“The Board of Directors has omitted supplementary information on future major repairs and replacements that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements.”Annual Meeting Packet February 23, 2024 (Independent Auditor's Report), packet p.34

“During the year ended December 31, 2022, the Association settled a lawsuit with some of the outside vendors in regards to repairs made from Hurricane Matthew. The amount received in the settlement was approximately $457,600.”Annual Meeting Packet February 24, 2023 (audited 2022 financial statements, Note H), packet p.36

“It was noted that the settlement funds are inadequate for replacing PTAC units. Owners inquired about the allocation of the $1 million collected from the lawsuit and emphasized the importance of regular PTAC inspections to prevent issues like cross-unit drainage.”Annual Meeting Transcript February 28, 2025, PTAC Settlement & HVAC Maintenance, file p.3

“At December 31, 2023, an income tax liability from prior years is reported on the Balance Sheet in the approximate amount of $42,000. The income tax liability dates from the years 2011, 2013, 2014, and 2015. The income tax liability is disputed by the Association and not reflected in the Association's income tax returns filed during that time period.”Annual Meeting Packet February 23, 2024 (audited 2023 financial statements, Note C), packet p.41

“In the case of each Unit, each Property Owner of a Unit, by acceptance of the deed to the unit, agrees, in accordance with S.C. Code Ann. §27-31-190, to pay for electricity, cable, water, and sewer used by the entire Regime as a Common Expense.”Master Deed, Article VI §6.1.h, file p.25

“Grantor has made an initial contribution in the amount of $1,500,000.00 to the Association as reserves for replacements and repairs of components of the Building to help insure that adequate reserves for such repairs and replacements are available”Master Deed, Article XIX, file p.59

“83300 - Insurance Expense 740,250.00”Profit & Loss Budget Overview 2026, file p.2

“90949 - RE - Reserve Funding 123,046.20 / 90953 - Capital Projects 675,000.00 / Total 90000 - Reserve Expenditures 798,046.20”Profit & Loss Budget Overview 2026, file p.2

“30100 - Regular Assessment Revenue 3,298,804.69”Profit & Loss Budget Overview 2026, file p.1

“10002 - Pinnacle Money Market 841,470.04 / 29100 - Contract Liabilities 669,358.77 / 27000 - Income Taxes Payable 59,824.00”Balance Sheet as of March 31, 2025, file p.1

“90949 - RE - Reserve Funding 0.00 31,989.81 (31,989.81) / 90953 - Capital Projects 272,403.03, 200,000.00 72,403.03.”Annual Meeting Packet February 23, 2024 (Profit & Loss Budget vs. Actual, January-December 2023), packet p.16

“90949 - RE - Reserve Funding 0.00 385,439.00 (385,439.00) / 90953 - Capital Projects 252,158.70 0.00 252,158.70”Annual Meeting Packet February 24, 2023 (Profit & Loss Budget vs. Actual, January-December 2022), packet p.13

“32001 - Retained Earnings (60,174.66) 0.00 (60,174.66) / Net Income 28,957.63 (60,174.66) 89,132.29”Balance Sheet as of March 31, 2025, file p.1 (Dec 31, 2024 column shows the 2024 net loss)

“The deductible shall be paid by the party who would be liable for the loss or repair in the absence of insurance and in the event of multiple parties shall be allocated in relation to the amount each party's loss bears to the total.”Master Deed, Article XI §11.7, file p.45

Who's really in charge?

Caution

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.

Owner-elected board and expired developer control, but the commercial unit holds an unamendable deed-level monopoly on rental services, signage and pool access for outsiders, also controls the relocatable overflow-parking easement, cannot be bound by rules without its consent, and the 51% quorum has failed three years running so directors are serving past the terms they were elected to in 2022.

StructureOne association

Commercial unitYes, with its own deed rights

On-site operatorCaravelle Properties (owner of the six Commercial Units; hotel rental program run by Vacation Myrtle Beach per the 2024 minutes); association managed by Resort Association Management, Inc. (RAM)

BoardThree directors initially; the Board sets its own size at 3, 5 or 7 (By-Laws §2.1). Developer (Grantor) appointed the board until the later of owning no units or December 31, 2016; thereafter directors are owner-elected to three-year terms (By-Laws §2.3), removable with or without cause by owners holding 2/3 of the Percentage Interest (§2.4). The Commercial Unit owners jointly appoint an additional non-voting ex officio director with notice, attendance and inspection rights. The current three directors were elected for three-year terms at the February 25, 2022 annual meeting (the last meeting with a quorum, 52%); those terms ran to February 2025, but no election was possible at the 2023, 2024 or 2025 annual meetings because the stated 51% quorum was not reached (36.8%, 47.6%, 44.34%), so the board is serving past its elected term. By-Laws §1.8 lets owners holding 10% of the Percentage Interest require a special meeting; §4.2 caps any management contract at three years, terminable by either party on 90 days' notice without fee.

Developer rightsGrantor (Beachfront Conversions, LLC, successors and assigns): Phase II expansion right through December 31, 2016 (expired); board appointment through the Developer Control Term (expired); perpetual consent rights over amendments to Article IV use restrictions (§4.9), §5.3 common-element use, §5.4 commercial restriction, §5.6 maintenance, and all rights reserved to Grantor (§14.1(ii), §14.2); unilateral scrivener's-error amendments (§14.3); utility/cable easement grants without owner consent (§9.3); the Parking Easement may be relocated within a quarter mile in the sole discretion of 'the Grantor under the Parking Easement' (§9.10), which Exhibit A-2 identifies as Caravelle Properties, the commercial-unit owner, not the Master Deed Grantor; Grantor representatives need not recuse on contracts with the Association (§15.2). Grantor rights are assignable to lenders or subsequent developers.

Commercial-unit rightsCommercial Units C-1 to C-6 (owned by Caravelle Properties): exclusive right to conduct all commercial activity on the Regime Property including rental management, front desk, key pick-up/drop-off, concierge, cable/internet/phone/movie service, laundry, food and beverage, retail and room service on pool decks and hallways (§5.4, §5.5.d); C-1 may run a property management business from its limited common elements (§5.5.b); exclusive perpetual signage/advertising easement incl. 'For Rent' signs on unoccupied units (§9.8); construction/sales/rental easement (§9.7); rooftop communications-tower easement with the right to lease tower sites (§3.6.b, §5.5.a, §9.9); control of trash-chute rooms (§5.5.b); C-6 pool kiosk and patio commercial use; exclusive easement to admit guests of up to 150 off-site 'Adjacent Units' to the pools for an annual fee (§9.13); unilateral non-structural and engineer-certified structural alterations without Board consent (§4.4); may lease portions of commercial units (§4.7); gas separately metered for C-6 but all other C-6 utilities are a common expense (§6.1.h); attorney's fees if it successfully enforces the commercial restrictions (Art. XVI(c)); rules affecting it are not binding without its written consent (By-Laws §7.2); amendments to its rights require its consent (§14.1(iii)); non-voting ex officio board seat (By-Laws §2.3).; as grantor of the Parking Easement (Exhibit A-2) it also holds the unilateral right to relocate the overflow parking within a quarter mile while the Association pays all easement costs (§9.10, §6.1.j).

VotesOne vote per unit weighted by Percentage Interest (Exhibit C: residential units 0.218%-0.408% each; commercial units 2.99% combined). Decisions by majority of Percentage Interest represented at a meeting with quorum unless a higher vote is required. By-Laws §1.3 sets quorum at one-third of the Percentage Interest, but every annual meeting transcript states that 51% is required and declares no quorum. Budget is deemed approved unless 2/3 of Percentage Interest amend it (By-Laws §5.3); special assessments need approval of a majority of owners (By-Laws §5.5); the Board may borrow and pledge assessments and reserves without an owner vote except amenity borrowing over 5% of budget, which needs >50% (By-Laws §2.2.o); acquisition of added common elements needs >50% (MD §5.8); reconstruction plan changes need 75% (MD §12.1).

Changing the deedMaster Deed and By-Laws: proposed by a Board majority or owners holding >50% of Percentage Interest, adopted by owners holding two-thirds (2/3) of the Percentage Interest at a special meeting, recorded within 30 days (MD §14.2; By-Laws §10.1). Unanimous consent of owners and mortgagees to change Percentage Interests or assessment apportionment; Grantor consent for Grantor rights; Commercial Unit owner consent for Commercial Unit rights (MD §14.1). Rules and Regulations are adopted by the Board alone and bind owners once delivered (By-Laws §7.2).

Disputes or lawsuitsMandatory negotiation-mediation-binding arbitration for all claims among owners, the Association, Grantor and contractors, with a jury-trial waiver and prevailing-party attorney's fees (MD Art. XVIII, file pp.53-59); assessment collection and emergency injunctions are exempt. History: BB&T 'Uninsured Loss Loan' of $195,447 at 12/31/2021 repaid in 2022; Hurricane Matthew vendor lawsuit settled in 2022 for about $457,600; Hurricane Ian insurance claim (~$99,000, 2022) partly outstanding; a PTAC (through-wall HVAC) lawsuit yielding about $1 million in settlement funds described as inadequate to replace the units (2025 minutes); a disputed prior-year (2011-2015) income tax liability of roughly $42,000-$59,824 still carried at 3/31/2025; owners at the 2025 meeting questioned proxy procedures and the president's attendance. Routine collection and covenant actions described by the auditor as immaterial.

What the documents say (20)

“Initially, the number of directors on the Board shall be three (3); in subsequent years, the number of directors shall be set by the Board at three (3), five (5), or seven (7), members, as the Board deems appropriate.”By-Laws (Master Deed Exhibit E), Article II §2.1, file p.84

“After the expiration of the Developer Control Period, Directors shall serve three-year terms.”By-Laws (Master Deed Exhibit E), Article II §2.3, file p.87

“In addition to the Directors appointed by the Grantor and/or elected by the members under the preceding paragraphs, the Owners of the Commercial Units shall by collective vote and agreement designate and appoint a representative to serve as an additional ex officio Director.”By-Laws (Master Deed Exhibit E), Article II §2.3, file p.87

“The presence in person or by proxy of Property Owners owning one-third of the Percentage Interest in the Common Elements shall constitute a quorum for the transaction of business at meetings of the Association.”By-Laws (Master Deed Exhibit E), Article I §1.3, file p.81

“In order to establish quorum, 51% of the total votes of the association must participate in person or by proxy. [The management company's president] stated that only approximately 44.34% of the total votes were present in person and by proxy, therefore a quorum was not established. As such, no votes could be taken by the membership relating to any matters”Annual Meeting Transcript February 28, 2025, file p.1

“At such meeting, the amendment or amendments proposed must be approved by the affirmative vote of the Property Owners holding two-thirds (2/3rds) of the Percentage Interest in the Common Elements as set forth in EXHIBIT C in order for such amendment or amendments to become effective.”Master Deed, Article XIV §14.2, file p.48

“The provisions of this Article IV may not be amended without the consent of the Grantor.”Master Deed, Article IV §4.9, file p.20

“The foregoing restriction on commercial activities in this Section 5.4 may not be amended without the consent of all the Owners of the Commercial Units and the Grantor, their successors and assigns.”Master Deed, Article V §5.4, file p.22

“any such Rules or Regulations which purport to diminish, abrogate or in any way affect the Commercial Unit, including the Limited Common Elements appurtenant thereto or other rights reserved or granted herein in favor of the Grantor or the Owner of the Commercial Unit, its successors and assigns, relative to the Units, Commercial Unit, Common Elements, or any other portion of the Regime Property, shall not be binding upon the Grantor and/or the Commercial Unit Owner, whichever the case may be, its successors and assigns, unless and until the affected Grantor and/or Commercial Unit Owner consents in writing to the same.”By-Laws (Master Deed Exhibit E), Article VII §7.2, file p.94

“The Association may borrow money for the purpose of repair or restoration of the Common Elements, or for the purpose of funding budgetary shortfalls, without the approval of the Property Owners, and in connection with such borrowing the Association shall have the power to pledge assessments and reserve accounts to secure such borrowing”By-Laws (Master Deed Exhibit E), Article II §2.2.o, file p.86

“The Budget, as adopted by the Board, shall be deemed approved by the Property Owners at the annual meeting unless amended upon the motion and an affirmative vote of Property Owners holding two-thirds (2/3rds) of the Percentage Interest in the Common Elements.”By-Laws (Master Deed Exhibit E), Article V §5.3, file p.90

“The funds required from time to time to pay any Common Expenses which are not covered by the Budget but which are approved by a majority of the Property Owners shall be collected from the Property Owners by the Board of Directors in such installments as the Property Owners shall determine ("Special Assessments")”By-Laws (Master Deed Exhibit E), Article V §5.5, file p.91

“These units are privately owned by Caravelle Properties and ran by Vacation Myrtle Beach, not the HOA and have the autonomy to manage their units as they see fit, aligning with any legal and regulatory requirements.”Annual Meeting Transcript February 23, 2024, Commercial Units, file p.4

“The Tiki Bar & Restaurant are not owned by the Association. They are privately owned Commercial Units by Caravelle Properties, and they have the right to decide who their customers are, much like any other owner in the building has a right to decide who their guests are in their units.”Annual Meeting Transcript February 24, 2023, file p.3

“As an appurtenance to Commercial Unit C-1, Grantor hereby grants to the Owner of Commercial Unit C-1, a perpetual, commercially useable, exclusive easement to permit the owners, occupants and guests staying at certain off-site overnight accommodations (the "Adjacent Units") to make use of certain pool and sundeck amenities located within the Regime upon the terms and conditions contained herein.”Master Deed, Article IX §9.13, file p.40

“This Section 18.2d. is an agreement of the Bound Parties to arbitrate all Claims except Exempt Claims and is specifically enforceable under the applicable arbitration law of the State of South Carolina.”Master Deed, Article XVIII §18.2.d, file p.55

“Grantor hereby discloses, and by acceptance of a deed conveying a Unit, each Owner of a Unit hereby acknowledges, that the Building comprising the Regime Property was constructed in phases between approximately 1952 to 1996 by persons other than Grantor.”Master Deed, Article XIX, file p.59

“As outlined by the Master Deed, the terms of three Board Members had been completed, as such an election of the Board was held.”Annual Meeting Packet February 24, 2023 (February 25, 2022 annual meeting minutes), packet p.7

“No management contract may have a term in excess of three (3) years and each contract must permit termination by either party without cause and without termination fee on ninety (90) days or less written notice.”By-Laws (Master Deed Exhibit E), Article IV §4.2, file p.90

“Pursuant to the Parking Easement, certain parking for the Regime may be relocated to another location within one quarter of a mile from the Regime, the relocation to be in the sole and absolute discretion of the Grantor under the Parking Easement, subject to the terms, conditions, and limitations set forth in the Parking Easement.”Master Deed, Article IX §9.10, file pp.39-40

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

Short-term rentals are expressly allowed: units are residential-only but an owner 'may rent his or her Unit on any basis', with no minimum stay, no owner-use cap and no rental registration or approval by the association (Master Deed §4.5, file p.19).
You may self-manage or use any off-site manager: the Board told owners that 'Owners and other owner management companies are free to decide' how to handle their guests, and the rules address Airbnb and 'Rental Agents' directly (Annual Meeting Transcript Feb 24, 2023, p.3; Rules 2025, pp.2, 4).
Off-program guests get every amenity: the pools, lazy river, hot tubs and sun deck are open to anyone wearing a resort wristband, which the Rules say may come from 'either the Association or the hotel', and the fitness center is 'an exclusive amenity to the Unit Owners and all Guests with Accommodations in this Building' (Rules 2025, pp.2-3).
By-Laws forbid rules that discriminate against renters: 'Rules and Regulations shall not discriminate against persons who are delegates', i.e. an owner's rental guests (By-Laws §7.2, Master Deed file p.94).
Dues bundle in-unit electricity, water/sewer, building fuel, internet (and cable/streaming), monthly pest control and the master insurance, so a self-managing owner carries almost no separate utility set-up (Master Deed §6.1.h, file p.25; Budget 2026, p.1).
Developer control is over: Grantor board appointment ended no later than December 31, 2016 and directors are now owner-elected to three-year terms (By-Laws §2.3, Master Deed file pp.86-87).
Insurance cost fell sharply for 2026, from $1,339,200 to $740,250, under a new carrier with a higher $53.3M limit, and dues rose only about 3% (Budget 2026, p.2; COI 2026-27, p.1).
No special assessment appears in any 2022-2026 budget, dues letter or meeting record; dues were cut 10% for 2022, held flat for 2025 and all capital work was paid from annual assessments (HOA letters e6fbb993 p.1 and 39c5d88a p.1; Budgets 2024-2026).
Annual CPA audits with clean opinions and a separately held replacement fund ($669,359 at 12/31/2023; $841,470 money-market balance at 3/31/2025) (Annual Meeting Packet 2024, pp.32-35; Balance Sheet 3/31/2025, p.1).
A lockbox below the door handle is expressly permitted and guests get the fitness-center code from the owner, so self check-in works without the front desk (Rules 2025, pp.3, 6).
The Association, not the owner, maintains balcony floors, balcony-facing walls and railings (Master Deed §4.3, file p.18).
Management contracts are capped at three years and must be terminable by either party on 90 days' notice without a fee, and owners holding 10% of the percentage interest can force a special meeting (By-Laws §4.2 and §1.8, Master Deed file pp.90, 82).
Before you buy, the Association must furnish a statement of the seller's assessment status on request, and a buyer at foreclosure takes free of prior delinquencies (Master Deed §6.8 and §6.7, file pp.29-30).
Off-site guests admitted under the commercial unit's pool easement are barred from the pools and decks between 9:30 p.m. and 8:30 a.m. and are capped at 150 units without Board consent (Master Deed §9.13, file p.41).

Watch-outs

Deed-level monopoly on rental services: nobody but the Commercial Unit owners (Caravelle Properties) may run 'rental management services, key pick up and drop off, front desk, concierge' or sell cable/internet on the common elements, and this cannot be amended without their consent and the Grantor's (Master Deed §5.4, file pp.21-22).
No 'For Rent' signs or advertising anywhere on the property, and Commercial Unit C-1 holds a perpetual exclusive easement over all signage, advertising racks and information centers in lobbies, hallways, pool decks and parking areas (Master Deed §9.1.b, file p.33; §9.8, file p.39).
Even in-unit rental management is squeezed: the home-business carve-out excludes 'Unit rental management calls' (Master Deed §9.1.l, file p.35).
Each rental gets one parking space and one HOA-issued pass carrying the unit number, reservation number and departure date; passes from Airbnb or a rental manager are invalid, so every booking needs a pass run through the HOA/management company (Rules 2025, PARKING, p.4).
Year-round pool wristbands printed 'The Caravelle Resort' must come from the Association or the hotel; guests without one are removed (Rules 2025, pp.2-3).
Pools can be crowded by outsiders: Commercial Unit C-1 may admit guests of up to 150 off-site units to the pools and sun decks under a perpetual easement (Master Deed §9.13, file pp.40-41).
Guest smoking or vaping anywhere outside the unit, including the balcony or garage, means immediate eviction without refund plus a fine to the owner (Rules 2025, p.2).
Fines escalate to $250 per occurrence, unpaid fines can get the unit's power cut with a $250 reconnect fee, and delinquent dues carry 18% interest, a $50 late fee and electricity termination after 20 days (Rules 2025, p.6; Master Deed §6.2.f and §6.4, file pp.27-28).
Owner must lodge a key or door code with the Association ($100 fine), allow mandatory monthly pest treatments, file HO-6 proof every year and paint the entry door the specified color (Rules 2025, pp.2, 6; Minutes Feb 28, 2025, p.3).
No in-unit washer/dryer, dishwasher, ice maker or garbage disposal may be added, and cleaning crews may not use the luggage carts; bulk furniture must be hauled off-site at the owner's expense (Rules 2025, pp.4-5).
Aging structure with no reserve study: the building dates from 1952-1996, the auditor says the Association 'had not completed a study to estimate the remaining useful lives and the current replacement cost of the common property components' and reserves 'may not be adequate', and the Board omitted the required future-repairs disclosure (Master Deed Art. XIX, file p.59; Annual Meeting Packet 2024, pp.34, 42).
Reserves are thin relative to a $3.35M budget: the replacement fund was $669,359 at 12/31/2023 (down from $933,132 a year earlier) and only $123,046 (3.7%) of the 2026 budget is true reserve funding; most capital work is pay-as-you-go (Packet 2024, p.35; Budget 2026, p.2).
Big-ticket exposure already flagged: garage structural repairs 'potentially reaching around $400,000', an exterior repaint that 'could result in a special assessment', elevator repairs, Legionella testing and a 7th-floor pool deck rebuild (Minutes Feb 23, 2024, pp.2-3; Minutes Feb 24, 2023, p.3; Budget 2026, p.1).
Volatile dues: -10% (2022), +6.6% (2023), +13.3% (2024), 0% (2025), +3% (2026), with insurance driving the swings and consuming 41% of the budget in 2024-25 (HOA letters; Minutes 2023 p.2; Budgets 2024-2025).
Wind deductible of 3% of values with a $100,000 minimum on the 2025-26 master policy (roughly $1.2M+ on a $41M building) falls on owners after a storm, because the deed makes any loss within the deductible a Common Expense or the liable owner's cost; the 2026-27 certificate does not state the new carrier's wind deductible (COI 2025-26, p.1; COI 2026-27, p.1; Master Deed §11.7 and §12.1.c, file pp.45-46).
Flood: the building sits in zone VE/AE and the NFIP premium is being held at $56,951 by a $144,883 annual-increase-cap discount against a $191,240 full-risk premium, so flood cost will climb every year (COI 2026-27, p.2).
The 51% quorum was missed three years running (36.8%, 47.6%, 44.34%), so owners have not voted on anything since 2022 and the three-person board is effectively self-perpetuating; the By-Laws actually set quorum at one-third, a discrepancy worth asking about (Minutes 2023 p.1, 2024 p.1, 2025 p.1; By-Laws §1.3, file p.81).
The Board may borrow and pledge reserves without an owner vote, and the budget is deemed approved unless 2/3 of all percentage interest overturn it (By-Laws §2.2.o and §5.3, Master Deed file pp.86, 90).
Rules that touch the Commercial Unit do not bind it without its written consent, and it has a permanent non-voting seat at every board meeting (By-Laws §7.2 and §2.3, file pp.94, 87).
Mandatory binding arbitration with a jury waiver and prevailing-party fees for most disputes with the Association or the developer (Master Deed Art. XVIII, file pp.53-59).
Unresolved liabilities: a disputed 2011-2015 income-tax bill of about $42,000-$59,824 still on the balance sheet, a Hurricane Ian claim partly uncollected, and a ~$1M PTAC lawsuit settlement owners say is inadequate to replace the units (Packet 2024, p.41; Balance Sheet 3/31/2025, p.1; Minutes Feb 28, 2025, p.3).
Water/sewer ran $97,499 over budget in 2023 after a backflow leak, and utilities (electricity, water, gas) are an 18% budget line paid on a common meter regardless of how much your guests use (Packet 2024, p.15; Budget 2026, p.1).
Parking across the street is on an easement whose grantor, Caravelle Properties (the same entity that owns the commercial units), can relocate it anywhere within a quarter mile at its sole discretion, with the Association paying its upkeep, utilities, security, insurance and taxes (Master Deed §9.10 and §6.1.j, file pp.25-26, 39-40; Exhibit A-2, file p.64).
No pets, no grills, 10 p.m. quiet hours, pools close at 9:30 p.m. and no cooler over 15x15 inches: strict house rules you must police with guests (Rules 2025, pp.2-5).
The budgeted reserve transfer has not actually been made: 'RE - Reserve Funding' showed $385,439 budget / $0 actual in 2022, $31,990 / $0 in 2023 and $7,305 / $0 in Q1 2025, with capital projects paid as they come; the replacement fund fell from $987,899 to $669,359 during 2023 (Packet 2023, p.13; Packet 2024, pp.16, 35; Balance Sheet 3/31/2025, p.3).
2024 closed with a $60,175 operating loss (the Dec 31, 2024 column of the March 2025 balance sheet), after a $166,336 surplus in 2023 (Balance Sheet 3/31/2025, p.1; Packet 2024, p.16).
Persistent rule violations can cost you the unit: after notice and hearing the Board may serve a 10-day notice terminating your right to occupy and sue for a decree ordering the unit sold at judicial sale, with costs and attorney's fees charged to you (Master Deed §9.4, file pp.37-38).
The three directors were elected in February 2022 for three-year terms, and with no quorum since then no election has been held, so the board has been serving past its elected term since February 2025 (Packet 2023, p.7-8; Minutes 2025, p.1; By-Laws §2.3, file p.87).
A buyer in a voluntary sale is jointly and severally liable with the seller for any unpaid assessments, so get the §6.8 assessment-status statement before closing (Master Deed §6.8, file pp.29-30).
NFIP building coverage of $32.5M is rated on 130 units (the regime has 349) against a $34.87M replacement cost and the declarations warn a coinsurance penalty may apply; the commercial out-building is insured for only $500,000 against a $1,675,000 replacement cost (COI 2026-27, pp.2-3).

Unit type	Per month	Per year
Oceanview Suite (type A, approx. 519 sf, 80 units) - 2024/2025 monthly incl. $303.69 insurance assessment	$726	$8,718
Oceanfront Suite (types D-1/D-2, approx. 600-625 sf, 94 units) - 2024/2025 incl. $364.43 insurance	$872	$10,461
Oceanfront Deluxe Suite (types B-1 to B-4, approx. 627-744 sf, 14 units) - 2024/2025 incl. $379.62 insurance	$908	$10,897
Oceanfront Jacuzzi Suite (type G, approx. 978 sf, 12 units) - 2024/2025 incl. $455.54 insurance	$1,090	$13,077
Oceanfront Two Bedroom Suite (type E, approx. 1,200 sf, 1 unit) - 2024/2025 incl. $440.55 insurance	$1,054	$12,643
Oceanfront Efficiency 455 sf (types C-6-A/B, 32 units) - 2024/2025 incl. $280.92 insurance	$672	$8,064
Oceanfront Efficiency (types C-1-A to C-1-H, approx. 350-398 sf, 52 units) - 2024/2025 incl. $273.33 insurance	$654	$7,846
Oceanview Efficiency and 505-529 sf Oceanfront Efficiency (types C-2-A to C-2-D, 50 units) - 2024/2025 incl. $265.73 insurance	$636	$7,628
Oceanfront Studio (type F, approx. 444 sf, 8 units; labelled 'Oceanfront Efficiency 978 sf' in the rate table) - 2024/2025 incl. $242.90 insurance	$581	$6,974

Caravelle 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, 2026

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.

Caravelle 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, 2026

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.