Dunes Village 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?

Typical

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.

Daily/weekly/monthly rentals are expressly allowed with no minimum stay and any manager is permitted, but every guest must be registered through the CU-1 operator, managers must carry $1M/$5M coverage, keys cannot be dispensed from the unit, and the mark owner can regulate advertising; neither the recorded 2023 by-laws amendment nor the 2024 budget changes any of this.

Short-term rentalsAllowed

Minimum stay1 nights

Must use on-site programNo

Owner may rent it personallyYes

Off-site manager allowedYes

Owner-use limitsNone in the Master Deed: no owner-use cap, blackout dates or program-use requirement. Units are restricted to residential use by the owner, immediate family, guests, licensees and invitees, and may be rented on a daily, weekly or monthly basis (Master deed.pdf, Article XIV, pages 15-16). Rules and regulations are not in the set. Neither new document (recorded by-laws amendment, 2024 budget) touches rental rights.

RegistrationBefore occupying a unit or using the parking easement premises, every owner, rental guest and invitee must register name, address, license plate, length of stay and unit with the Association; the owner of Commercial Unit CU-1 is the Association's exclusive designated agent for recording registrations. The requirement also applies to anyone entering to provide cleaning, laundry, repair or trash services. Each owner must disclose the registration and manager-insurance requirements in writing to any rental management company, and the requirements must be stated in that company's guest agreements. Repeated violations can draw fines after notice and cure. The Master Deed adds that the CU-1 owner 'shall in no way be liable or responsible for the failure or refusal of any person to register upon arrival', so the compliance risk sits with the owner (Article XV(C), page 18).

Advertising rulesThe owner of the service marks ('Pan American', 'Pan American Resort', 'Dunes Village', 'Dunes Village Resort' - Pan American Vacations Management, LLC) retains the right to impose reasonable rules on owners' and rental managers' advertising to prevent use of the names and photographic images of the Marks in a way that misleads the public about inventory size or guest services. No 'For Rent'/'For Sale' signs or banners visible from outside the unit. CU-1 holds the exclusive advertising and signage easement over all common elements. Specific advertising rules are not in the set. The Marks are licensed to the Association under a 'nonwarranty license agreement'; unit owners 'shall have the right to use the Marks in the name of the ASSOCIATION', and any other use is at the mark owner's discretion (Master deed.pdf, Article VII, page 12).

Vote to change rental rulesMaster Deed generally: proposed by the CU-1 owner, a majority of the Board, or members holding 25% of undivided interest, then approved by members owning at least 67% of the undivided interest in the common elements. Article XIV (residential use / rental / commercial-activity restrictions) additionally requires the express written consent of ALL commercial unit owners, and the restriction on commercial activities may not be amended without the unanimous vote of all unit owners. Any change to commercial-unit rights requires that commercial owner's written consent. By-Laws: 67% of the total votes of the Association (recorded 2023 amendment, Article VI Section 6 recital); the 2023 by-laws amendment shows the mechanism in practice - board-proposed, special meeting, 83.74% represented (mostly by proxy), 82.18% in favor.

What the documents say (12)

“With the exception of the COMMERCIAL UNITS, each UNIT is hereby restricted to residential use by the OWNER or OWNERS thereof, their immediate families, guests, licensees and invitees; provided, however, an OWNER may rent his or her UNIT so long as he or she does not use the UNIT itself to dispense keys of any nature, including, without limitation, keys to lock boxes, to book rentals, or to otherwise act as the office to rent the UNIT(S) or for providing rental or cleaning services for the UNIT or any other property, which such conduct is expressly prohibited.”Master deed.pdf, Article XIV, page 15

“Provided however, nothing herein shall be construed as limiting the right of any OWNER of any UNIT from renting or leasing his, her, their or its UNIT, subject to all terms and conditions of this Master Deed on a daily, weekly or monthly basis.”Master deed.pdf, Article XIV, page 16

“RESIDENTIAL UNIT OWNERS may rent their UNITS, but are restricted against using any part of the COMMON ELEMENTS to engage in the business of renting.”Master deed.pdf, Article XIV, page 16

“Daily or weekly maid service is permitted by independent contractors acting for one or more UNIT OWNERS, but only the OWNER of UNIT CU-1 shall be entitled to use the on premises storage and service chutes and closets.”Master deed.pdf, Article XIV, page 16

“The foregoing restriction on commercial activities may not be amended without the unanimous vote of all UNIT OWNERS.”Master deed.pdf, Article XIV, page 16

“GRANTOR further discloses that in the case of OWNERS that desire to rent RESIDENTIAL UNITS they own, the owner of the Marks, its successors or assigns, retains rights to impose reasonable rules and regulations concerning the advertisement of UNITS for rent by OWNERS and rental managers to prevent use of the names and photographic images of the Marks in a manner that is misleading to the general public as to the size of inventory of UNITS that is being offered or as to the types of guest services that are available in connection with the rental.”Master deed.pdf, Article VII, page 12

“(1) Prior to occupying any RESIDENTIAL UNIT within the Regime Property, or making use of any part of the Parking and Amenity Easement premises, all OWNERS, rental guests and other invitees shall first register their names, addresses, automobile license plate numbers, if any, length of stay, and RESIDENTIAL UNIT of occupancy with the ASSOCIATION, (hereinafter, the "Registration Requirement").”Master deed.pdf, Article XV(C), page 18

“Each RESIDENTIAL UNIT OWNER shall be required to disclose the requirements of this Section and Section (D) below in writing to any rental management company providing such services to such OWNER, and the existence of such requirements shall be clearly stated in any and all written agreements between such rental management company and rental guests.”Master deed.pdf, Article XV(C), page 18

“The Regime Property is hereby further restricted such that any and all rental management companies providing services to any RESIDENTIAL UNIT OWNERS at Pan American Horizontal Property Regime shall maintain the following amounts of insurance: General liability coverage in an amount of not less than $1,000,000.00 per occurrence with an aggregate of $2,000,000.00 and an umbrella policy of not less than $5,000,000.00 (provided that such coverage is reasonably available at standard rates from a licensed insurer within the State of South Carolina), with the ASSOCIATION named as an additional insured on all such policies.”Master deed.pdf, Article XV(D), page 18

“Further, no OWNER, or his agent, may place any signs or banners upon the COMMON ELEMENTS, or within his UNIT or the LIMITED COMMON ELEMENTS so as to be visible from the exterior of the UNIT, including, without limitation "For Sale", "For Rent" or other advertising signs.”Master deed.pdf, Article XIX, page 21

“(4) Any amendment of ARTICLE XIV of this Master Deed shall require the express written consent of all of the OWNERS of the COMMERCIAL UNITS;”Master deed.pdf, Article XXIX(A)(4), page 36

“No UNIT or any portion thereof may be submitted to any plan or form of interval or fractional ownership, or any form of timesharing or other related ownership scheme where the right to exclusive use rotates among multiple owners, members or partners of a program.”Master deed.pdf, Article XIV, page 16

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 the same pools, decks and spas as everyone else, but check-in is a registration through the on-site commercial operator, the key-card system belongs to CU-1 so owners cannot use a lockbox, and wristband/parking-pass practice is unstated.

Amenities for your guestsSame as program guests

Off limits to your guestsGuest laundry on the 4th floor (part of Commercial Unit CU-1, not a common element), Service/laundry chutes, janitorial and storage closets (limited common elements of CU-1; CU-1 may restrict access to the closets housing the trash chutes but must keep trash disposal available on every floor), Pool Deck Limited Common Element around the CU-2 cabana bar (CU-2 may cordon off pool-deck seating for private events up to 10 times a year, 6 hours each, after posting notice on the property at least 24 hours in advance), Rooftop (exclusive CU-1 communications easement)

Wristbands & parking passesWristbands and parking-pass fees are unstated. All occupants must register, including license plates, with the Association through the CU-1 owner as exclusive registration agent. Parking is a non-exclusive easement for up to 299 spaces in the Dunes Village parking garage across Ocean Boulevard (676 total spaces), first come-first served, and the garage grantor may relocate the parking temporarily or permanently in its sole discretion without owner or board consent.

Check-inRegistration with the Association on arrival is mandatory and is recorded exclusively by the owner of Commercial Unit CU-1 (the on-site commercial operator). Units have centralized electronic entry locks and the card-key system that makes and prints key cards is the property of the CU-1 owner; an owner may not dispense keys (including lockbox keys) from the unit. Whether CU-1 issues keys to off-program guests, and at what cost, is unstated.

TrashTrash chutes are common elements located inside closets that are CU-1 limited common elements; CU-1 may restrict access but must make trash disposal available at convenient times on all floors served. Owners' trash-service vendors must register before entering. Trash removal is an Association expense ($34,000 in both the 2024 and 2026 budgets).

ElevatorsElevators and stairs are common elements maintained by the Association (reserve schedule lists 4 passenger and 1 service elevator; 2024 budget: elevator contract $46,000 plus $12,000 unscheduled repairs). Elevator modernization at roughly $400,000 per elevator was discussed at the 2024 annual meeting. No vendor or service-elevator rule stated.

Housekeeping & linenOwners may use independent contractors for daily or weekly maid service, but only CU-1 may use the on-premises storage, service chutes and closets, so linens and supplies must be carried through the building. Any rental management company must post a placard in the unit identifying whom to contact for maintenance, cleanliness and linen issues.

What the documents say (9)

“(A) An OWNER shall be deemed to have delegated to any guest, renter, invitee and licensee of the OWNER'S UNIT the right of enjoyment of the COMMON ELEMENTS for the period of time of such occupation, rental, invitation or license.”Master deed.pdf, Article VII(A), page 11

“The OWNER of COMMERCIAL UNIT CU-1 shall be the exclusive designated agent of the ASSOCIATION for the sole and limited purpose of recording the necessary information under the Registration Requirement from each OWNER, rental guest and/or invitee upon the Regime Property and/or Parking and Amenity Easement premises.”Master deed.pdf, Article XV(C), page 18

“Additionally, the centralized electronic card key system for making and printing key cards is, and shall remain, the property of the OWNER of COMMERCIAL UNIT CU-1, its successors, lessees, licensees or assigns.”Master deed.pdf, Article VIII, page 13

“The OWNER of COMMERCIAL UNIT CU-1 may restrict access to such areas or closets enclosing such trash chutes, however, in the event of such restricted access, the OWNER of COMMERCIAL UNIT CU-1 shall continue to make trash disposal available to the UNIT OWNERS, and their guests, at convenient times and on all floors of the Buildings served by such trash chutes.”Master deed.pdf, Article IV, page 6

“Pursuant to the Amenity Restrictions all of the pool decks, swimming pools, spas, ground level common area restrooms and other pool and ground level pool and sun deck amenities of the Regime will be subject to rights of use and enjoyment by the owners and guests actually in residence at certain adjacent residential and accommodation properties in exchange for the payment of a portion of the annual costs of insurance, maintenance, and repair thereof.”Master deed.pdf, Article VI(D), page 9

“No such exclusive event shall continue for more than six (6) consecutive hours and no more than ten (10) such events may take place in any one calendar year.”Master deed.pdf, Article VI(F), page 10

“Pursuant to the terms and conditions of said instrument, the owners, guests and invitees actually in residence at the adjacent Pan American Horizontal Property Regime are entitled to the non-exclusive use and enjoyment of up to two hundred ninety-nine (299) parking spaces out of the total six hundred seventy-six (676) parking spaces currently located upon the Parking Garage Premises on a first come-first serve basis with the OWNERS in consideration for the payment to the ASSOCIATION of a prorata portion of the costs of maintenance, repair and replacement of such facilities.”Master Deed 1.pdf (Dunes Village HPR), Article VI(A), page 12

“Pursuant to the Parking and Amenity Easement, certain parking for the Regime may be relocated, either temporarily or permanently, to another location, the relocation to be in the sole and absolute discretion of the grantor under the Parking and Amenity Easement.”Master deed.pdf, Article VI(A), page 7

“Additionally, any and all rental management companies providing services to RESIDENTIAL UNIT OWNERS shall prominently display a placard or other similar materials within each RESIDENTIAL UNIT on their rental program, identifying the name, address, phone number and other contact information for such rental management company and specifically whom to contact for issues regarding the maintenance or cleanliness of the UNIT and/or linen service.”Master deed.pdf, Article XV(D), pages 18-19

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.

Registration of every guest and vendor, written disclosures to any manager, key handoff away from the unit and in-unit lock, HVAC and appliance upkeep sit on the owner, though there is no response-time rule, no trash hauling, no stated service-elevator restriction and fines are negligible in practice (none even budgeted in 2024).

Local contactNot required of a self-managing owner by the Master Deed; only rental management companies must post an in-unit placard with contact information. Rules and regulations that might add a local-contact rule are not in the set.

Locks & keysEntry doors have centralized electronic locks; the card-key system belongs to the CU-1 owner. Door locks on the exterior entry doors are the owner's maintenance responsibility. The owner may not use the unit to dispense keys of any kind, including lockbox keys, so key handoff must happen away from the unit (practically, through the CU-1 desk or off-site). The Association keeps accessible keys to all common elements and has an immediate emergency right of entry.

FinesNo fine schedule in the set. The Board may fine the owner for conscious or repeated registration violations after written notice and a reasonable chance to cure; owners are liable for damage caused by their guests or lessees beyond Association insurance proceeds, including any resulting insurance-rate increase; unauthorized alterations must be removed within 3 days or the Association removes them and charges the owner; $25 late fee plus judgment-rate interest after 20 days, acceleration and lien foreclosure; the Association recovers attorney's fees if successful in enforcement. In practice fines are negligible: 'Fines, late fees & other revenues' were $4,300 in 2024 and $5,691 in 2023, and the 32000 Fines/Late Fees line shows $300 for Jan-Aug 2025 (2025 Annual Meeting.pdf, Packet IV statement of revenues; Packet III P&L); the 2024 budget budgets no fine revenue at all (its only income lines are assessments, interest and commercial utilities). The Association may also suspend an owner's voting rights and right to use any common element while any assessment on the unit is unpaid (Master deed.pdf, Article VII(C), pages 10-11). The same-form Dunes Village by-laws (not Pan American's, which are absent) let the Board impose 'reasonable fines' that become a lien, after written notice with at least 10 days to request a hearing; a fine for an occupant's violation is assessed first against the occupant and then the owner if unpaid, and the Board may never block access to the unit (Master Deed 2.pdf, Exhibit E, Article III Section 23).

Contractors & vendorsEvery cleaning, laundry, repair or trash vendor must register with the Association before entering. Rental management companies must carry $1M/$2M general liability and a $5M umbrella naming the Association as additional insured and furnish proof before starting. Only CU-1 may use service chutes, closets and storage. Monthly pest-control spraying inside units by the Association's contractor (2024 budget: $35,000 interior pest control), and Association access for common-element work on reasonable notice.

AlsoBalcony occupancy limited to 5 persons (8 on 7th-floor terraces); uniform window-treatment backing and uniform patio furniture required; nothing stored on balconies; no antennas, satellite dishes, clotheslines, shutters or exterior changes; household pets only and not on common elements except hallways; owner must keep the unit from any condition that increases the Regime's insurance rate; all disputes go through mandatory negotiation, mediation and binding arbitration with jury trial waived. Owner maintenance scope: the owner maintains and replaces the HVAC including the condenser and its piping and wiring, appliances, window and door glass, exterior door locks, interior doors, finishes and carpeting; the Association maintains the entry door, sliding glass door and their frames, balcony floors and railings; where a covered loss hits owner-maintained items, the owner pays whatever falls within the Association's deductible or coverage limits (Master deed.pdf, Article IV pages 3-4 and Article XXI pages 22-23) - relevant with a $25,000 water-damage deductible on the master policy.

What the documents say (8)

“The Registration Requirement set forth above shall also expressly apply to any and all persons entering the Regime Property for purposes of providing services to the RESIDENTIAL UNIT OWNERS, including, without limitation, cleaning, laundry, repair and trash services.”Master deed.pdf, Article XV(C), page 18

“Conscious and/or repeated violations of the terms of this Section may, in the discretion of the ASSOCIATION'S Board of Directors, result in the imposition of monetary fines to the OWNER of the offending RESIDENTIAL UNIT after written notice and a reasonable opportunity to cure the violation is provided to such OWNER.”Master deed.pdf, Article XV(C), page 18

“To facilitate entry in the event of any such emergency, the UNITS are equipped with centralized, electronic locks on the entry doors.”Master deed.pdf, Article XVII, page 20

“(B) The OWNER or OWNERS of each UNIT shall be liable for the expense of any maintenance, repair or replacement rendered necessary by his or their act, neglect or carelessness, or by that of any member of his or their 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 the ASSOCIATION.”Master deed.pdf, Article XXX(B), page 38

“In that regard, ASSOCIATION, or its designated contractor may perform monthly service for pest control which may include spraying within each UNIT and each OWNER of a UNIT is hereby so notified.”Master deed.pdf, Article XVIII, page 20

“(i) Except for the seventh (7th) floor terraces, no more than five (5) persons shall be permitted to congregate upon the surface areas of the balconies, terraces or porches at any one time (the seventh floor (7th) terraces shall be limited to no more than eight (8) persons);”Master deed.pdf, Article XV(A), page 17

“Further, a late fee of $25.00 shall be assessed for each installment not paid within twenty (20) days after the due date thereof.”Master deed.pdf, Article XXVII(G), page 33

“Any improvements or alterations made to a UNIT or COMMON ELEMENT by a UNIT OWNER (other than as provided herein) without authorization in accordance with the foregoing must be removed within three days after notice from the ASSOCIATION or the ASSOCIATION may remove the unauthorized improvement or alteration and assess the violating OWNER for any charges necessary for the removal and repair.”Master deed.pdf, Article XIX, page 21

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.

Dues cover nearly every utility plus a master HO-6, budgeted insurance has fallen 23% from $956,000 (30% of the 2024 budget) to $733,000 for 2026 with a low 0.75% storm deductible, and no special assessment appears in the 2024, 2025 or 2026 budgets, but reserves were funded at only 3.4% in 2024, two-thirds of the 2026 'reserve contribution' is excess CAPX-loan proceeds ($550,010 of $829,744, leaving owner-funded reserves at about 7.6% of budget), $497,252 a year of loan repayment now sits inside dues, the Association ran a $142,906 audited operating deficit in 2024 against a budget balanced to zero and a $618,057 loss through August 2025, assessment rates rose about 8% for 2024 (audit rate range) and budgeted assessment revenue +10.0% for 2025 and +6.0% for 2026 ($3,138,269 -> $3,452,096 -> $3,659,222), and the ~$864,000 reserve is a board estimate roughly half of a replacement list that 2025 roof and painting spending already exceeded.

2026 budget$3,677,797

Dues change+6.0% on the year

Reserves8% of budget

Reserve balance$864,372

Reserve studyNone in the set

Special assessmentsNone in the documents

Insurance2026 budget: Insurance Expense $600,000 plus Master HO6 Expense $133,000 = $733,000, against $700,000 + $140,000 = $840,000 in the 2025 budget (a 12.7% budgeted decrease; 2024 audited actual $676,201 + $128,263). Three-year budget trend from the 2024 budget now on disk: 2024 budgeted '83300 - Insurance Expense 802,000.00' plus '83310 - Master HO6 Expense 154,000.00' = $956,000, 30.1% of that year's $3,172,169 income (the 2024 budget also carried '89705 - Insurance Claims-Other 17,000.00'); so the budgeted insurance load fell from $956,000 (2024) to $840,000 (2025) to $733,000 (2026), -23% over two years, while dues rose. Pct of budget is against the $3.68M owner-funded budget (2026 income excluding $2,666,759 of CAPX-loan draws); against the $6.34M gross total it is 11.6%. The broker reported premiums fell about 3% at the 2024 meeting with deductibles lowered for fire and water damage. The $271,700 named-storm deductible is 0.75% of the $36,035,000 insured value (a studio's 0.00249 share is about $677). Coverage is placed through a captive and, per the audit, an affiliate of the developer provided insurance services (~$637,000 in 2024). Program also includes $50M umbrella, $2M/$1M general liability with $50,000 self-insured retention, $1M D&O, $100M terrorism, $1M pollution/mold ($3M aggregate shared by all captive members). Master HO-6 (Lloyd's): a single combined improvements-and-betterments limit with contents included of $14,000 (1BR) / $20,000 (2BR) / $26,500 (3BR), loss of use $15,000/$20,000/$25,000 and $500,000 personal liability; the tier for the 80 studios and 7 four-bedroom units is unstated; the owner bears per-unit deductibles of $5,000 wind/hail, $5,000 flood, $5,000 earthquake and $2,500 all other perils; coverage follows the unit on sale. The Board may levy a separate insurance assessment at its sole discretion. The property-policy row in the summary shows an expired 2024-2025 term, so the current property renewal should be requested.

Wind deductible$271,700 Named Storm on $36,035,000 total insured value; $25,000 all other perils; $25,000 water damage; $50,000 earthquake; $10,000 equipment breakdown (Grand Strand Resort Insurance Company property program). Master HO-6: $5,000 wind/hail, $5,000 flood, $5,000 earthquake, $2,500 all other perils per unit.

FloodNFIP RCBAP through Homesite Insurance Company: $35,035,000 building limit, $25,000 deductible, zone AE, first-floor height 15 ft, 0 prior NFIP claims; total annual premium $24,135 for 05/31/2026-05/31/2027. Building coverage equals the stated replacement cost value of $35,035,000 (insured to value); the premium includes a $6,060 Community Rating System reduction; the declarations warn that 'coverage limitations and a coinsurance penalty may apply'.

Passes through to a master association3% of the budget

DelinquencyAudit: all receivables fully collectible at 12/31/2024, bad-debt expense $109 (2024) and $146 (2023); policy is to retain counsel and lien at 90 days delinquent. Collections weakened in 2025: the interim 8/31/2025 balance sheet shows $28,479 assessments receivable against a $72,660 allowance for doubtful accounts, and Jan-Aug 2025 bad-debt expense was $15,289. Both the 2024 budget ('59850 - Bad Debt Expense 20,000.00') and the 2026 budget carry $20,000 of bad-debt expense. Master Deed: $25 late fee and judgment-rate interest after 20 days, acceleration, lien foreclosure with receiver and rental proceeds, attorney's fees; voting and common-element use rights may be suspended while any assessment is unpaid (Article VII(C)); on any voluntary conveyance the grantee is jointly and severally liable with the grantor for assessments unpaid at closing, and the Association must furnish a payment-status statement that purchasers may rely on (Article XXVII(L), pages 34-35).

What the documents say (31)

“PAN AMERICAN 2026 ASSESSMENT RATES - 6% Increase”2026 AssessmentInformation.pdf, Page 1, second table heading

“PAN AMERICAN 2025 ASSESSMENT RATES - 10% Increase”2026 AssessmentInformation.pdf, Page 1, first table heading

“39700 Draws on CAPX Loan”2026 Pan American Budget.pdf, Page 1, Income; budgeted amount shown as 2,666,759.00 of 6,344,556.08 total income (Regular Assessment Revenue 3,659,222.04 vs 3,452,095.90 in the 2025 budget, +6.0%)

“89910 Repayment of CAPX Loan”2026 Pan American Budget.pdf, Page 1, Expense; budgeted amount shown as 497,252.25

“99910 General Reserve Contribution”2026 Pan American Budget.pdf, Page 2, Other Expense; amount shown as 829,743.71, which equals Net Ordinary Income after $2,666,759 of 'Draws on CAPX Loan' are booked as income; income excluding loan draws is $3,677,797 and operating expenses $3,398,063, so the owner-funded portion is about $279,734 and the other ~$550,010 is loan draws in excess of the $2,116,749 capital-projects line. The 2025 budget's contribution was $310,791.15 (8.9% of $3,492,996)

“30100 - Regular Assessment Revenue 3,138,269.18”Budget 2024 (MLS 2521009), Page 1, Income; Total Income 3,172,169.18 (plus 31000 Interest Income-Operating 30,000.00 and 31600 Commercial Utilities Revenue 3,900.00). Trend: assessment revenue 3,138,269.18 (2024) -> 3,452,095.90 (2025 budget, +10.0%) -> 3,659,222.04 (2026 budget, +6.0%); owner-funded total budget 3,172,169 -> 3,492,996 (+10.1%) -> 3,677,797 (+5.3%)

“99910 - General Reserve Contribution 107,328.38”Budget 2024 (MLS 2521009), Page 2, Other Expense; equals the whole Net Ordinary Income, 3.4% of 2024 budgeted income, with Net Income 0.00. Compare $310,791 (8.9%) in the 2025 budget and ~$279,734 owner-funded (7.6%) in 2026. The 2024 budget has no capital-projects, reserve-expense or loan-draw lines at all

“83300 - Insurance Expense 802,000.00”Budget 2024 (MLS 2521009), Page 1, Expense; with 83310 - Master HO6 Expense 154,000.00 the budgeted insurance load was $956,000, 30.1% of 2024 income (actual per audit $676,201 + $128,263); 2025 budget $840,000; 2026 budget $733,000

“89900 - Repay Loan to DV 100,000.00”Budget 2024 (MLS 2521009), Page 1, Expense; the $100,000 loan from Dunes Village POA (Feb 2022) that the audit says was repaid Feb 2024 - repaid out of 2024 operating dues

“59850 - Bad Debt Expense 20,000.00”Budget 2024 (MLS 2521009), Page 1, Expense; same $20,000 budgeted in 2026; actual 2024 bad debt was $109 per the audit

“90913 RE-Roofing”2025 Annual Meeting.pdf, Packet III, Profit & Loss Budget vs. Actual Jan-Aug 2025, page 1; actual 549,255.00 against 0.00 budget; Total 90000 Reserve Expenses 988,268.05 vs 190,000.00 budget; Net Income (618,057.43)

“Pan American POA ended September with approximately $537,000 in cash, a $66,000 operating deficit, and capital projects under budget.”2025 Annual Meeting.pdf, Packet II, draft minutes of Oct 18, 2024 annual meeting, page 1 (Review of the September 30, 2024 Financial Statements)

“Major repairs include roof replacement (~$700,000), elevator modernization (~$400,000 per elevator for 11 units), garage repairs (~$262,000 remaining), and exterior painting (~$1.1 million).”2025 Annual Meeting.pdf, Packet II, draft minutes of Oct 18, 2024 annual meeting, page 2

“Accumulated net funds, which aggregate $994,271 and $805,643 at December 31, 2024 and 2023, respectively, are presented on the accompanying balance sheets as a contract liability (assessments received in advance - reserve fund) and are held in separate accounts and are generally not available for operating purposes.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 11 Major Repairs and Replacements, page 11

“The Association's Board of Directors estimates the remaining useful lives and replacement costs of the common property components.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 11, page 11

“Therefore, amounts designated for future repairs and replacements may not be adequate to meet future needs.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 11, page 11

“The following is based on estimates conducted by the Board of Directors and presents significant information about the components of common property.”2025 Annual Meeting.pdf, Packet IV, Supplementary Information on Future Major Repairs and Replacements (Un-audited), page 12; estimated current replacement costs total $2,004,625 against $994,271 funded

“The Association is responsible for approximately forty-four percent (44%) of the costs associated with the parking garage, which is a facility shared by an adjacent property.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 6 Commitments & Contingencies, page 9

“The Association also shares forty-seven percent (47%) of the trash collection expenses and the costs associated with the tennis and basketball court amenities.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 6, page 9

“For the years ended December 31, 2024 and 2023, the Association contracted with an entity related to the developer to provide various maintenance and other bulk services to the Association.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 9 Related Party Transactions, page 10; totals $659,311 (2024) and $605,011 (2023)

“During the years ended December 31, 2024 and 2023, an affiliate of the developer provided insurance services for the Association's insurance program.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 10 Captive Insurance, page 10

“Regular monthly assessments to residential unit owners ranged from $665 to $2,840 in 2024 and from $616 to $2,630 in 2023.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 8, page 10

“Deductibles: $25,000 All Perils except: $271,700 Named Storm $50,000 Earthquake $25,000 Water Damage $10,000 Equipment Breakdown”Insurance Summary 2025-2026.pdf, Page 1, Property row

“Coverage follows the unit. Should the unit be sold, coverage remains in place for the new unit-owner.”Insurance Summary 2025-2026.pdf, Page 2, HO-6 row

“0 CLAIM(S)”Flood Renewal.pdf, Page 1, Rating Information, PRIOR NFIP CLAIMS; TOTAL ANNUAL PREMIUM $24,135.00

“2. Expenses declared common expenses by provisions of this Master Deed, including electricity charges for lighting, heating and air conditioning all units;”Master deed.pdf, Article XXXVI(I)(2), page 42

“The Board of Directors of the ASSOCIATION, may in its sole and absolute discretion, elect to issue an insurance-related assessment to the OWNERS that is separate and apart from other general Regime assessments on either a quarterly, semi-annual or annual basis, as the Board of Directors may determine.”Master deed.pdf, Article XXIV, page 26

“No plans to raise loss assessments at this time.”2025 Annual Meeting.pdf, Packet II, draft minutes of Oct 18, 2024 annual meeting, page 1 (Insurance Report)

“At December 31, 2024 and 2023, there were uninsured balances of $1,241,277 and $1,185,385, respectively.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 5 Concentrations of Credit Risk

“In any voluntary conveyance of a UNIT, the grantee shall be jointly and severally liable with the grantor for all unpaid assessments against grantor made prior to the time of such voluntary conveyance, without prejudice to the rights of the grantee to recover from the grantor the amounts paid by the grantee therefor.”Master deed.pdf, Article XXVII(L), page 35

“(C) The right of the ASSOCIATION to suspend an OWNER'S voting rights and the right to use any of the COMMON ELEMENTS for any period during which any assessment against the OWNER'S UNIT remains unpaid;”Master deed.pdf, Article VII(C), pages 10-11

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.

The board is owner-elected and developer control has ended, but the Master Deed gives the CU-1 commercial owner a perpetual monopoly on rental-office, front-desk, key-card, advertising and communications functions, veto power over pool-deck changes and rules affecting it, developer-related firms still hold the major service and insurance contracts, and the recorded 2023 amendment - proposed by the board and carried almost entirely by proxy - gives directors five-year terms with no limit on consecutive terms.

StructureOne association

Commercial unitYes, with its own deed rights

On-site operatorNot named in the set. The Master Deed reserves on-site rental management, front desk, key pick-up/drop-off, concierge and guest services to the owner of Commercial Unit CU-1, and the 'Pan American' / 'Dunes Village' service marks belong to Pan American Vacations Management, LLC. The association manager is Resort Association Management, Inc. (also the contact on the recorded 2023 by-laws amendment cover sheet).

BoardFive directors elected by the members since the end of developer (Class II) control; the Oct 2023 by-laws amendment (recorded copy now on disk, Deed Book 4735 Page 1736) set staggered initial terms (two 3-year, two 2-year, one 1-year), made every director elected thereafter serve a FIVE-year term, and states that directors 'may be elected to serve any number of consecutive terms'. The amendment was proposed by a majority vote of the directors and adopted at a special meeting on or about Oct 18, 2023 with 2 members present in person (4.38% of the vote) and 202 by proxy (79.36%). The same individuals sit as 'dual Board Members' of both the Pan American and Dunes Village associations and the two associations hold their annual meetings jointly. Under the same-form Dunes Village by-laws, directors need not be owners, the commercial unit owners may seat a non-voting ex officio director, and management contracts are capped at two years; the Pan American by-laws themselves are not in the set to confirm.

Developer rightsDeveloper Pan American Properties, LLC (a Virginia LLC) held Class II control to appoint the board for up to 10 years from the Sept 2006 filing; the 2023 amendment confirms Class II control has terminated. Surviving developer rights: written consent required to amend any grantor right or Article XXXII; unilateral scrivener/lender corrections; sales-office and signage use while it owns a unit; structural alterations need grantor consent while it owns a unit; rules affecting the grantor need its consent; grantor representatives need not recuse on contracts with the developer. Audit: the developer and related parties owned 6 units at 12/31/2024, a developer-related entity held $659,311 of 2024 service contracts (maintenance, janitorial, internet, security, pool attendant, unit telephone), a developer affiliate provided insurance services (~$637,000), and the developer paid $263,639 of Association invoices in 2024.

Commercial-unit rightsDeed-level and perpetual. CU-1: exclusive right to run rental management, front desk, key pick-up, concierge and guest services; exclusive advertising and signage easement over all common elements; exclusive rooftop/cell-tower easement; exclusive easement to provide telephone, cable, pay-per-view and internet to the Regime; owns the phone switchboard, PA system and card-key system; exclusive registration agent; live and recorded music on pool decks 9:00 a.m. to midnight; controls marquee signage; sales/concierge desk in lobbies; may propose Master Deed amendments; written consent required for any pool-deck change. CU-1/CU-2/CU-3: exclusive food, beverage and retail easement over pool and sun decks; CU-2 pool-deck seating and up to 10 private events a year. Commercial units may be altered or reconfigured without board consent and used for any lawful purpose. No rule binds a commercial unit without its written consent; Article XIV cannot change without all commercial owners; commercial owners may specifically enforce these rights with attorney's fees; the Board plus a majority of commercial owners may sign amenity-sharing deals with hotels and other regimes without residential owner consent. CU-1 may delegate or transfer its lobby sales/concierge-desk right to a third-party lessee or licensee (Article IV(J), page 5), and is expressly not liable for anyone's failure to register (Article XV(C), page 18). The 2024 budget shows the commercial units reimbursing only $3,900 of utilities ('31600 - Commercial Utilities Revenue').

VotesOne vote per unit weighted by percentage interest in the common elements; co-owners designate one voting member; proxies allowed. Quorum is 51% of the total vote (the 2023 special meeting had 83.74% represented - 4.38% in person and 79.36% by proxy - and the 2024 annual meeting 79.81%). Assessments are allocated by Exhibit C percentage interest (studios 0.00249 to 4-bedrooms 0.011026; CU-1 0.028).

Changing the deedMaster Deed: proposed by the CU-1 owner, a Board majority or 25% of undivided interest; adopted by members holding at least 67% of undivided interest at a special meeting; percentage-interest or assessment-basis changes need all owners and first mortgagees; grantor and commercial-unit rights need their written consent; termination needs unanimous owners and lienholders. By-Laws: 67% of the total votes of the Association (Article VI Section 6 of the by-laws, as recited in the recorded 2023 amendment); the 2023 amendment was carried by 200 votes representing 82.18% with 4 members (1.56%) against, and the recorded instrument provides that its terms control over the by-laws in any conflict.

Disputes or lawsuitsMaster Deed Articles XXXVIII-XXXIX impose a jury-trial waiver and mandatory notice, negotiation, mediation and final binding arbitration for all claims except assessment collection and injunctive relief, with loser-pays attorney's fees. The 2024 audit reports only routine collection and covenant-compliance actions. 2025 interim statements show two open insurance claims (a sprinkler water loss in May 2025 and a fire loss in June 2025) with roughly $211,000 of related liabilities. A $100,000 loan from Dunes Village POA (Feb 2022) was repaid Feb 2024; the 2024 budget carries that repayment as '89900 - Repay Loan to DV 100,000.00'. The 2024 budget also set aside $17,000 for 'Insurance Claims-Other' and only $4,000 for legal/professional fees.

What the documents say (20)

“Section 6. Election and Term of Office. Notwithstanding any other provision contained herein, at the first annual meeting after the termination of Class II control, five (5) Directors shall be elected.”Amendment to By-Laws.pdf, Amendment to Article III Section 6, Deed Book 4735 Page 1736 (page 3 of 6); confirmed verbatim in the recorded copy on disk (By-Laws - RECORDED Amendment, MLS 2507241, page 3)

“Two of the Directors, elected pursuant to this Section, shall be elected to serve for a term of three (3) years. Two (2) of the remaining Directors shall be elected to serve for a term of two (2) years, with the final Director elected to serve for a one(1) year term. Members of the Board of Directors may be elected to serve any number of consecutive terms. Each member elected thereafter shall be elected for a five (5) year term.”By-Laws - RECORDED Amendment (MLS 2507241), AMENDMENT, Article III Section 6, Deed Book 4735 Page 1736 (page 3 of 6)

“Each member elected thereafter shall be elected for a five (5) year term.”Amendment to By-Laws.pdf, Amendment to Article III Section 6, Deed Book 4735 Page 1736 (page 3 of 6); confirmed verbatim in the recorded copy on disk

“WHEREAS, upon a majority vote of the Directors of the Association, an amendment to the By-Laws was proposed and was submitted to the membership for consideration at a Special Meeting on or about October 18, 2023;”By-Laws - RECORDED Amendment (MLS 2507241), Recitals, Deed Book 4735 Page 1735 (page 2 of 6)

“WHEREAS, Article VI, Section 6, of the By-Laws specifically provides that the By-Laws shall be amended only by the affirmative vote, in person or by proxy, of sixty-seven percent (67%) of the total votes of the Association;”Amendment to By-Laws.pdf, Recitals, Deed Book 4735 Page 1735 (page 2 of 6); confirmed verbatim in the recorded copy on disk

“WHEREAS, the By-Laws, in Article II, Section 12, Quorum, require the presence in person or by proxy of the Voting Members representing a simple majority (fifty-one percent (51%)) of the total vote of the Association to constitute a quorum;”Amendment to By-Laws.pdf, Recitals, Deed Book 4735 Page 1735 (page 2 of 6); confirmed verbatim in the recorded copy on disk

“WHEREAS, two (2) members were present in person, representing 4.38% of the total vote of the Association, and two hundred two (202) members were present by proxy, representing 79.36% of the total vote of the Association, for a total representation of 83.74% of total vote of the membership, and a quorum was met;”By-Laws - RECORDED Amendment (MLS 2507241), Recitals, Deed Book 4735 Page 1735 (page 2 of 6)

“WHEREAS, the Association received ballots in excess of the majority of the total quorum votes, with the result of the vote being two hundred (200) votes representing 82.18% in favor of, and four (4) of the members representing 1.56% voting against, the proposed amendment, for a total affirmative vote of 82.18%;”By-Laws - RECORDED Amendment (MLS 2507241), Recitals, Deed Book 4735 Page 1735 (page 2 of 6)

“in the event of any conflict between the terms and provisions of this Amendment and the terms and provisions of the By-Laws, as heretofore amended, the terms and provisions of this Amendment shall control.”By-Laws - RECORDED Amendment (MLS 2507241), Deed Book 4735 Page 1736 (page 3 of 6)

“Provided, however, any such rules or regulations that purport to diminish, abrogate or in any way affect the COMMERCIAL UNITS, including the LIMITED COMMON ELEMENTS appurtenant thereto or other easements or rights grants herein in favor of such COMMERCIAL UNITS or the OWNERS thereof shall not be binding upon such OWNER(S) of such COMMERCIAL UNITS, their successors and assigns, unless and until such affected OWNER consents in writing to the same.”Master deed.pdf, Article XV, page 17

“(E) Advertising Easement. As an appurtenance to COMMERCIAL UNIT CU-1, the OWNER of COMMERCIAL UNIT CU-1, its successors and assigns, is hereby granted a perpetual, exclusive and commercially useable easement for advertising and the placement of signage over the corridors, passageways, elevators, exteriors of the Buildings and other COMMON ELEMENTS of the Regime.”Master deed.pdf, Article VI(E), page 9

“Notwithstanding anything herein to the contrary, no removal, alteration or improvement of pool deck or pool amenities shall take place unless the OWNER of COMMERCIAL UNIT CU-1 has first consented in writing to the same.”Master deed.pdf, Article XX, page 22

“Furthermore, the Board of Directors of the ASSOCIATION, with the consent of a majority of the OWNERS of the COMMERCIAL UNITS, shall have the power and authority from time to time, without the need for consent from RESIDENTIAL UNIT OWNERS, to enter into written and/or recorded agreements with other horizontal property regime associations, hotel owners/operators and other third parties for the sharing and/or reciprocal use of Regime Amenities upon such terms as the Board of Directors may determine appropriate.”Master deed.pdf, Article XIII, page 15

“(F) Any OWNER of a COMMERCIAL UNIT shall have the right to specifically enforce the easements, rights and benefits granted to such OWNER(S) and/or the COMMERCIAL UNIT(S) under this Master Deed, including, without limitation, the provisions of Article XIV restricting the right and authority of the ASSOCIATION and the OWNERS of RESIDENTIAL UNITS to conduct commercial activities upon the Regime.”Master deed.pdf, Article XXX(F), page 39

“At such meeting, the amendment or amendments proposed must be approved by an affirmative vote of MEMBERS owning at least sixty-seven (67%) percent of the undivided interest in the COMMON ELEMENTS of the Condominium in order for such amendment or amendments to become effective.”Master deed.pdf, Article XXIX(B), page 37

“Additionally, provided that the GRANTOR has not earlier terminated "Class II" membership in the ASSOCIATION in accordance with the Articles of Incorporation and/or By-Laws of the ASSOCIATION, then the GRANTOR, its successors and assigns, shall have the right, for a period of ten (10) years from the filing of this Master Deed (the "Control Period") in the Horry County Register of Deeds Office, to designate and select the persons who shall serve as members of the Board of Directors of the ASSOCIATION in accordance with Article II, Section 2 and Article III, Section 2 of the By-Laws.”Master deed.pdf, Article XXXII, pages 39-40

“As of December 31, 2024 and 2023, the developer and parties related to the developer owned six (6) of the Association's residential and commercial units.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 9 Related Party Transactions, page 10

“The regularly scheduled Annual Meeting(s) of the Dunes Village Property Owners' Association, Inc.'s and the Pan American Property Owners' Association, Inc's, was held at 1:00 p.m. on October 18, 2025 in the Admiral Ballroom of the Dunes Village Building and via Zoom teleconferencing.”2025 Annual Meeting.pdf, Packet II, draft minutes headed October 18, 2024, page 1 (the year in the sentence is a typo in the document)

“GRANTOR HEREBY DECLARES, ON BEHALF OF ITSELF, THE ASSOCIATION, AND ANY OWNER OF A UNIT, THAT ANY AND ALL RIGHT TO TRIAL BY JURY SHALL BE WAIVED BY GRANTOR, THE ASSOCIATION, AND EACH OWNER OF A UNIT IN ANY DISPUTE, PROCEEDING, CASE OR CONTROVERSY ARISING UNDER OR RELATED TO THE WITHIN MASTER DEED.”Master deed.pdf, Article XXXVIII, pages 46-47

“(b) This Section (B)(4). 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.pdf, Article XXXIX(B)(4), page 49

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 rental is written into the Master Deed: owners may rent on a daily, weekly or monthly basis, so there is no minimum stay, and the deed states no owner-use cap or blackout (Master deed.pdf, Article XIV, pages 15-16)
Owners may rent personally or through any rental manager - there is no obligation to join the on-site program, and daily or weekly maid service by independent contractors is expressly permitted (Master deed.pdf, Article XIV, page 16)
Renters are deemed to hold the owner's full right to enjoy the common elements for the stay, so off-program guests get the same pools, lazy rivers, spas and decks as program guests (Master deed.pdf, Article VII(A), page 11)
Dues are all-inclusive: in-unit electricity and HVAC, water/sewer, gas, cable, internet, unit phone, pest control, trash and a master HO-6 contents policy are common expenses, so a self-managing owner has almost no separate utility bills (Master deed.pdf, Article XXXVI(I); 2026 Pan American Budget.pdf, page 1; 2026 AssessmentInformation.pdf; Budget 2024 (MLS 2521009), page 1, lines 60000-60800 and 45000)
The master HO-6 policy follows the unit on sale and provides a combined improvements-and-contents limit of $14,000 (1BR) / $20,000 (2BR) / $26,500 (3BR) plus loss of use and $500,000 personal liability, billed inside dues at $21.66-$97.86 a month (Insurance Summary 2025-2026.pdf, HO-6 row; 2026 AssessmentInformation.pdf)
Owner-elected five-member board since developer control ended; the recorded 2023 by-laws amendment passed with 200 votes (82.18% of the total vote) against 4 (1.56%), with 83.74% of the vote represented (By-Laws - RECORDED Amendment (MLS 2507241), Recitals, Deed Book 4735 Page 1735; Amendment to By-Laws.pdf)
Audited 2024 financial statements carry an unqualified opinion, replacement-reserve cash was $994,271 at 12/31/2024 and $864,372 at 9/30/2025, and all receivables were judged fully collectible with $109 of bad debt for 2024, although the operating fund ran a $142,906 deficit that year (2025 Annual Meeting.pdf, Packet IV auditor's report and Notes 8 and 11; Packet V balance sheet)
No special assessment has been levied: the 2024, 2025 and 2026 budgets carry no special-assessment income line and the 2024 minutes record no plans for a loss assessment; insurance is budgeted at $733,000 for 2026 against $840,000 for 2025 and $956,000 in the 2024 budget (-23% over two years) after a ~3% premium decrease and lower fire/water deductibles at the 2024 renewal, the $271,700 named-storm deductible is only 0.75% of the $36,035,000 insured value, and the NFIP flood policy is insured to replacement value with zero prior claims at $24,135 a year (Budget 2024 (MLS 2521009), page 1, lines 83300 and 83310; 2025 Annual Meeting.pdf, Packet II minutes page 1 and Packet VI 2025 budget; 2026 Pan American Budget.pdf; Insurance Summary 2025-2026.pdf, Property row; Flood Renewal.pdf)
A rental ban would require amending Article XIV, which takes 67% of the undivided interest plus the written consent of every commercial unit owner, so a residential majority alone cannot ban rentals; only the commercial-activity restriction paragraph itself needs a unanimous owner vote (Master deed.pdf, Article XXIX(A)(4) page 36, Article XXIX(B) page 37 and Article XIV page 16)
Fines are rare in practice: fine and late-fee revenue was $4,300 in 2024 and $300 for Jan-Aug 2025, and the 2024 budget does not even budget a fine-revenue line (2025 Annual Meeting.pdf, Packet IV statement of revenues; Packet III P&L line 32000; Budget 2024 (MLS 2521009), page 1, Income)
The Association's 2024 budget repaid the $100,000 it had borrowed from the sister Dunes Village association in 2022 out of ordinary dues, so no inter-association debt is carried forward (Budget 2024 (MLS 2521009), page 1, line 89900; 2025 Annual Meeting.pdf, Packet IV audit notes)

Watch-outs

You cannot hand out keys from the unit, including lockbox keys, cannot book rentals from the unit, and cannot use any common element 'to engage in the business of renting'; the card-key system that prints keys belongs to the CU-1 commercial owner, so key logistics for a self-managed stay run through the on-site operator or off-property (Master deed.pdf, Article XIV page 15 and Article VIII page 13)
Every guest, and every cleaner, laundry, repair or trash vendor, must register name, address, license plate, length of stay and unit with the Association before occupying or parking, and the CU-1 owner is the exclusive agent for that registration; you must disclose this in writing to any manager and in guest contracts, and repeated violations are fineable (Master deed.pdf, Article XV(C), page 18)
Any off-site rental manager must carry $1M/$2M general liability plus a $5M umbrella naming the Association, furnish proof before starting, and post a placard in the unit - a real screen on which small managers can work here (Master deed.pdf, Article XV(D), pages 18-19)
The holder of the 'Pan American' and 'Dunes Village' service marks (Pan American Vacations Management, LLC) may regulate how owners and managers use the resort names and photos in listings; the actual advertising rules are not in the set (Master deed.pdf, Article VII, page 12)
The 2026 budget is funded in part by $2,666,759 of capital-loan draws with $497,252 a year of loan repayment inside the dues (13.5% of owner-funded income) after 2025 reserve spending ran about $800,000 over budget and produced a $618,057 year-to-date loss; by percentage interest the repayment alone is about $1,238/yr (~$103/mo) for a studio, ~$2,934/yr for an angle 2-bedroom and ~$5,483/yr for a 4-bedroom, and about two-thirds of the $829,744 '2026 reserve contribution' is simply loan draws in excess of the capital-projects line (2026 Pan American Budget.pdf, pages 1-2; 2025 Annual Meeting.pdf, Packet III P&L Jan-Aug 2025; Master deed.pdf Exhibit C)
The loan followed years of thin reserve funding: the 2024 budget put only $107,328 (3.4% of a $3.17M budget) into reserves and had no capital-project line at all, while budgeting $956,000 (30%) for insurance and $100,000 to repay the sister association - a reserve build of that size could never have paid for the ~$700,000 roof, ~$1.1M painting and ~$400,000-per-elevator work the board discussed in 2024 (Budget 2024 (MLS 2521009), pages 1-2, lines 99910, 83300, 83310 and 89900; 2025 Annual Meeting.pdf, Packet II minutes page 2)
The Association has run operating deficits two years running: $142,906 audited for 2024 (fund balance down from $1,064,085 to $921,179) against a 2024 budget that was balanced to exactly $0.00 net income, and $618,057 through August 2025, while bad-debt expense jumped from $109 to $15,289 and a $72,660 allowance for doubtful accounts appeared against $28,479 receivable; $1,241,277 of bank balances were above FDIC limits at 12/31/2024 (2025 Annual Meeting.pdf, Packet IV Statement of Revenues and Expenses and Notes 5 and 8; Packet III P&L and balance sheet; Budget 2024 (MLS 2521009), page 2, Net Income)
Dues have risen more than 5% three years running: about 8% from 2023 to 2024 ($616-$2,630 to $665-$2,840 a month), 10% for 2025 and 6% for 2026; budgeted assessment revenue went from $3,138,269 (2024) to $3,452,096 (2025, +10.0%) to $3,659,222 (2026, +6.0%) (2025 Annual Meeting.pdf, Packet IV Note 8; 2026 AssessmentInformation.pdf, table headings; Budget 2024 (MLS 2521009), page 1, line 30100; 2026 Pan American Budget.pdf, page 1)
Reserve funding is based on the Board's own estimates, not a professional reserve study; the Board's $2.0M replacement schedule was about 50% funded and carried the roof at $380,000 (20-year life) and all five elevators at $500,000 with only waterproofing and door/fascia painting lines, while 2025 actuals already show $549,255 of re-roofing and $252,575 of painting spent plus $118,520 accrued, and the 2024 meeting discussed a ~$700,000 roof, ~$1.1M painting and ~$400,000 per elevator (2025 Annual Meeting.pdf, Packet IV supplementary schedule page 12, Packet III P&L and balance sheet, Packet II minutes page 2)
The Pan American Tower is a 1972 building; the $2,116,749 of 2026 capital projects appears to correspond to the 'PALMETTO' column of the 7/21/25 Dunes Village Resort CAPX plan (total $2,102,774): painting/waterproofing $1,135,500, Otis elevator upgrade $500,000, PROCON garage $131,500, hall carpet $89,555, hall lighting $81,206, pool loungers $35,000, resort sign $33,500, room signage $22,713, spa resurface $22,000 and fire-standpipe work ~$21,800, with roofing ($399,000) only in the PALMS column - the column attribution is an inference from the tower name and the matching total, and OCR interleaving makes single-value rows uncertain (Master deed.pdf, Article XXXVII(A), page 44; 2025 Annual Meeting.pdf, Packet V CAPX sheet and Packet II minutes page 2)
Insurance is about $733,000 (19.9%) of the owner-funded 2026 budget - down from a budgeted $956,000 (30%) in 2024 - and is placed through a captive by a developer affiliate, the current property renewal is not in the set, and the Board can levy a separate insurance assessment at its sole discretion; the owner also carries $5,000 wind/hail, $5,000 flood and $2,500 all-other-perils deductibles per unit under the master HO-6 (Insurance Summary 2025-2026.pdf, Property and HO-6 rows; 2025 Annual Meeting.pdf, Packet IV Note 10; Master deed.pdf, Article XXIV page 26; Budget 2024 (MLS 2521009), page 1, lines 83300-83310)
CU-1 holds perpetual exclusive easements over advertising/signage, rooftop cell towers, telephone/cable/internet service, the PA system, registration, pool-deck music until midnight and marquee control, no rule binds a commercial unit without its written consent, and no pool-deck change can happen without CU-1's written consent (Master deed.pdf, Articles VI, VIII, XV page 17 and XX page 22)
Developer-related entities received $659,311 of 2024 service contracts and placed the insurance program, and the developer still owned six units at year-end 2024 (2025 Annual Meeting.pdf, Packet IV Notes 9 and 10, page 10)
Pool decks, pools and spas are shared with guests of adjacent Dunes Village properties under recorded amenity easements that neither owners nor the Board can refuse, and CU-2 may cordon off pool-deck seating for private events up to 10 times a year (Master deed.pdf, Article VI(C)-(D) pages 8-9 and Article VI(F) page 10)
Parking is an easement for 299 spaces in the Dunes Village garage across Ocean Boulevard that the garage grantor may relocate at its sole discretion, and Pan American pays 44.23% of garage costs (Master deed.pdf, Article VI(A) page 7; Master Deed 1.pdf (Dunes Village HPR), Article VI(A) page 12)
Board terms were lengthened to five years with no limit on consecutive terms by the board-proposed 2023 amendment, which passed on a vote that was almost entirely by proxy (79.36% by proxy, 4.38% in person), and the same people sit on both the Pan American and Dunes Village boards (By-Laws - RECORDED Amendment (MLS 2507241), Recitals and Amendment, Deed Book 4735 Pages 1735-1736; Amendment to By-Laws.pdf; 2025 Annual Meeting.pdf, Packet II minutes page 1)
All disputes with the Association or commercial owners go to mandatory mediation and binding arbitration with jury trial waived and loser-pays fees (Master deed.pdf, Articles XXXVIII-XXXIX, pages 46-52)
The Pan American by-laws, rules and regulations, rental/registration procedures and parking-pass policy are not in this set - the recorded 2023 instrument confirms the by-laws are appended to the Master Deed as an exhibit but amends only one section of them; the Dunes Village by-laws in Set B are a different association's document (Master deed.pdf, Article XIII, pages 14-15, references Exhibits D and E, which are absent; By-Laws - RECORDED Amendment (MLS 2507241), Recitals, page 2 of 6)
A buyer inherits the seller's unpaid dues: on any voluntary conveyance the grantee is jointly and severally liable for assessments unpaid at closing, so an estoppel/payment-status letter from the Association is a closing must (Master deed.pdf, Article XXVII(L), pages 34-35)
A delinquent owner's guests can lose amenity access mid-stay: the Association may suspend voting rights and the right to use any common element while any assessment on the unit is unpaid (Master deed.pdf, Article VII(C), pages 10-11)
The owner maintains the in-unit HVAC including the condenser, appliances, glass, exterior door locks and finishes, and pays the part of any insured loss to those items that falls within the Association's $25,000 water-damage deductible (Master deed.pdf, Article IV pages 3-4 and Article XXI pages 22-23; Insurance Summary 2025-2026.pdf, Property row)
The $2.67M CAPX loan may have needed an owner vote: the same-drafter Dunes Village by-laws require prior majority Voting Member approval for borrowing above 10% of budgeted gross expenses, and the loan is roughly 76% of the 2025 budget, but no loan documents or vote are in the set (Master Deed 2.pdf, Exhibit E, Article III Section 21; Master deed.pdf, Article VII(E) page 11)

04 The money

What you pay, and where it goes.

An HOA fee is a share of a budget. The budget tells you whether the fee is buying upkeep or catching up on it.

Regular assessments, 2026

Unit type	Per month	Per year
Oceanfront Deluxe King Studio (0.002490 interest, 80 units) - total incl. internet $34.93 and HO6 $21.66	$775	$9,302
Angle Oceanfront King Suite / Angle Oceanfront Queen Suite (0.003406, 13 units)	$1,047	$12,566
Oceanfront Deluxe 2 Q Suite / Oceanfront 2 Q Suite (0.003752, 75 units)	$1,150	$13,800
Angle Oceanfront 2 Bedroom Condo (0.005901, 27 units)	$1,789	$21,467
Oceanfront 2 Bedroom Condo / Angle Oceanfront 3 Bedroom Condo (0.006849, 29 units)	$2,070	$24,845
Oceanfront Deluxe 4 Bedroom Condo (0.011026, 7 units)	$3,312	$39,743
Commercial Unit CU-1 (0.028)	$8,074	$96,887
Commercial Unit CU-2 (0.006)	$1,730	$20,762
Commercial Units CU-3, CU-4, CU-5 (0.002 each)	$577	$6,921

What the dues cover

In-unit electricity, heating and air conditioning (declared a Common Expense; $350,000 in the 2024 budget, $360,000 in 2026)Water/sewer ($200,000 in 2024, $210,000 in 2026)Natural gas/fuel ($130,000 in 2024, $104,000 in 2026)Cable television ($53,000 in the 2024 budget)Internet access (billed as a $34.93/month line in dues; $70,400 expense in the 2024 budget)Unit telephone ($91,476 in 2024, $105,655 in 2026)Interior pest control (monthly; $35,000 in the 2024 budget)Trash removal ($34,000 in both the 2024 and 2026 budgets)Master HO-6 contents/improvements policy ($21.66-$97.86/month line in dues; $154,000 budgeted 2024, $133,000 in 2026)Contract security patrol ($129,800 plus $8,000 additional security in 2024; $149,919 in 2026)Pool attendants / seasonal pool labor and pool maintenance ($94,435 labor + $121,000 supplies/repairs in the 2024 budget; $109,072 + $132,000 in 2026)Elevator contract ($46,000 plus $12,000 unscheduled repairs in 2024), fire system maintenance ($20,000) and janitorial supplies ($21,000) (Budget 2024 (MLS 2521009), page 1)Property, flood, liability, umbrella, D&O, terrorism and pollution insuranceShare of Dunes Village parking garage (44.23% of garage costs; 42500 line $97,066 in both 2024 and 2026 plus about half of garage capital work), tennis/lake amenity (47%; 42800 line $6,000 in both years) and 50% of the Highway 17 monument-sign costs under a signage easement the grantor may cancel unilaterally at any time - about 2.8% of owner-funded income for the recurring linesRent under the stand-by electric generator lease with the state utility (Master deed.pdf, Article VI(I)(2), pages 10-11)

Where the budget goes

4274 Capital Projects (reserve expenses; funded by $2,666,759 of CAPX-loan draws, not dues) - all pct values are against the $3,677,797 owner-funded budget (income excluding loan draws)$2,116,749 · 58%

99910 General Reserve Contribution (Net Ordinary Income after booking loan draws as income; ~$550,010 is excess loan proceeds, owner-funded portion ~$279,734)$829,744 · 23%

83300 Insurance Expense$600,000 · 16%

89910 Repayment of CAPX Loan$497,252 · 14%

60000 Electricity$360,000 · 10%

41300 Maintenance Contract (2024 budget: $252,200; +15.5%)$291,291 · 8%

60100 Water/Sewer$210,000 · 6%

71000 Contract Security Patrol$149,919 · 4%

The figures, in the documents' words (31)

“PAN AMERICAN 2026 ASSESSMENT RATES - 6% Increase”2026 AssessmentInformation.pdf, Page 1, second table heading

“PAN AMERICAN 2025 ASSESSMENT RATES - 10% Increase”2026 AssessmentInformation.pdf, Page 1, first table heading

“39700 Draws on CAPX Loan”2026 Pan American Budget.pdf, Page 1, Income; budgeted amount shown as 2,666,759.00 of 6,344,556.08 total income (Regular Assessment Revenue 3,659,222.04 vs 3,452,095.90 in the 2025 budget, +6.0%)

“89910 Repayment of CAPX Loan”2026 Pan American Budget.pdf, Page 1, Expense; budgeted amount shown as 497,252.25

“99910 General Reserve Contribution”2026 Pan American Budget.pdf, Page 2, Other Expense; amount shown as 829,743.71, which equals Net Ordinary Income after $2,666,759 of 'Draws on CAPX Loan' are booked as income; income excluding loan draws is $3,677,797 and operating expenses $3,398,063, so the owner-funded portion is about $279,734 and the other ~$550,010 is loan draws in excess of the $2,116,749 capital-projects line. The 2025 budget's contribution was $310,791.15 (8.9% of $3,492,996)

“30100 - Regular Assessment Revenue 3,138,269.18”Budget 2024 (MLS 2521009), Page 1, Income; Total Income 3,172,169.18 (plus 31000 Interest Income-Operating 30,000.00 and 31600 Commercial Utilities Revenue 3,900.00). Trend: assessment revenue 3,138,269.18 (2024) -> 3,452,095.90 (2025 budget, +10.0%) -> 3,659,222.04 (2026 budget, +6.0%); owner-funded total budget 3,172,169 -> 3,492,996 (+10.1%) -> 3,677,797 (+5.3%)

“99910 - General Reserve Contribution 107,328.38”Budget 2024 (MLS 2521009), Page 2, Other Expense; equals the whole Net Ordinary Income, 3.4% of 2024 budgeted income, with Net Income 0.00. Compare $310,791 (8.9%) in the 2025 budget and ~$279,734 owner-funded (7.6%) in 2026. The 2024 budget has no capital-projects, reserve-expense or loan-draw lines at all

“83300 - Insurance Expense 802,000.00”Budget 2024 (MLS 2521009), Page 1, Expense; with 83310 - Master HO6 Expense 154,000.00 the budgeted insurance load was $956,000, 30.1% of 2024 income (actual per audit $676,201 + $128,263); 2025 budget $840,000; 2026 budget $733,000

“89900 - Repay Loan to DV 100,000.00”Budget 2024 (MLS 2521009), Page 1, Expense; the $100,000 loan from Dunes Village POA (Feb 2022) that the audit says was repaid Feb 2024 - repaid out of 2024 operating dues

“59850 - Bad Debt Expense 20,000.00”Budget 2024 (MLS 2521009), Page 1, Expense; same $20,000 budgeted in 2026; actual 2024 bad debt was $109 per the audit

“90913 RE-Roofing”2025 Annual Meeting.pdf, Packet III, Profit & Loss Budget vs. Actual Jan-Aug 2025, page 1; actual 549,255.00 against 0.00 budget; Total 90000 Reserve Expenses 988,268.05 vs 190,000.00 budget; Net Income (618,057.43)

“Pan American POA ended September with approximately $537,000 in cash, a $66,000 operating deficit, and capital projects under budget.”2025 Annual Meeting.pdf, Packet II, draft minutes of Oct 18, 2024 annual meeting, page 1 (Review of the September 30, 2024 Financial Statements)

“Major repairs include roof replacement (~$700,000), elevator modernization (~$400,000 per elevator for 11 units), garage repairs (~$262,000 remaining), and exterior painting (~$1.1 million).”2025 Annual Meeting.pdf, Packet II, draft minutes of Oct 18, 2024 annual meeting, page 2

“Accumulated net funds, which aggregate $994,271 and $805,643 at December 31, 2024 and 2023, respectively, are presented on the accompanying balance sheets as a contract liability (assessments received in advance - reserve fund) and are held in separate accounts and are generally not available for operating purposes.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 11 Major Repairs and Replacements, page 11

“The Association's Board of Directors estimates the remaining useful lives and replacement costs of the common property components.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 11, page 11

“Therefore, amounts designated for future repairs and replacements may not be adequate to meet future needs.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 11, page 11

“The following is based on estimates conducted by the Board of Directors and presents significant information about the components of common property.”2025 Annual Meeting.pdf, Packet IV, Supplementary Information on Future Major Repairs and Replacements (Un-audited), page 12; estimated current replacement costs total $2,004,625 against $994,271 funded

“The Association is responsible for approximately forty-four percent (44%) of the costs associated with the parking garage, which is a facility shared by an adjacent property.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 6 Commitments & Contingencies, page 9

“The Association also shares forty-seven percent (47%) of the trash collection expenses and the costs associated with the tennis and basketball court amenities.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 6, page 9

“For the years ended December 31, 2024 and 2023, the Association contracted with an entity related to the developer to provide various maintenance and other bulk services to the Association.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 9 Related Party Transactions, page 10; totals $659,311 (2024) and $605,011 (2023)

“During the years ended December 31, 2024 and 2023, an affiliate of the developer provided insurance services for the Association's insurance program.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 10 Captive Insurance, page 10

“Regular monthly assessments to residential unit owners ranged from $665 to $2,840 in 2024 and from $616 to $2,630 in 2023.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 8, page 10

“Deductibles: $25,000 All Perils except: $271,700 Named Storm $50,000 Earthquake $25,000 Water Damage $10,000 Equipment Breakdown”Insurance Summary 2025-2026.pdf, Page 1, Property row

“Coverage follows the unit. Should the unit be sold, coverage remains in place for the new unit-owner.”Insurance Summary 2025-2026.pdf, Page 2, HO-6 row

“0 CLAIM(S)”Flood Renewal.pdf, Page 1, Rating Information, PRIOR NFIP CLAIMS; TOTAL ANNUAL PREMIUM $24,135.00

“2. Expenses declared common expenses by provisions of this Master Deed, including electricity charges for lighting, heating and air conditioning all units;”Master deed.pdf, Article XXXVI(I)(2), page 42

“The Board of Directors of the ASSOCIATION, may in its sole and absolute discretion, elect to issue an insurance-related assessment to the OWNERS that is separate and apart from other general Regime assessments on either a quarterly, semi-annual or annual basis, as the Board of Directors may determine.”Master deed.pdf, Article XXIV, page 26

“No plans to raise loss assessments at this time.”2025 Annual Meeting.pdf, Packet II, draft minutes of Oct 18, 2024 annual meeting, page 1 (Insurance Report)

“At December 31, 2024 and 2023, there were uninsured balances of $1,241,277 and $1,185,385, respectively.”2025 Annual Meeting.pdf, Packet IV, audited financial statements, Note 5 Concentrations of Credit Risk

“In any voluntary conveyance of a UNIT, the grantee shall be jointly and severally liable with the grantor for all unpaid assessments against grantor made prior to the time of such voluntary conveyance, without prejudice to the rights of the grantee to recover from the grantor the amounts paid by the grantee therefor.”Master deed.pdf, Article XXVII(L), page 35

“(C) The right of the ASSOCIATION to suspend an OWNER'S voting rights and the right to use any of the COMMON ELEMENTS for any period during which any assessment against the OWNER'S UNIT remains unpaid;”Master deed.pdf, Article VII(C), pages 10-11

Dunes Village Resort.

The documents behind this page.

More than one association at this resort.

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.

Dunes Village Resort.

The documents behind this page.

More than one association at this resort.

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.