Monterey Bay Suites 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, no disclaimer and freedom to self-manage or use any rental company (confirmed by the owner letter), but the deed bars owners from dispensing keys or booking from the unit or common elements, on-property rental signage is Board-controlled, and the on-site operator holds an unamendable deed-level monopoly on front-desk and key services.

Short-term rentalsAllowed

Must use on-site programNo

Owner may rent it personallyYes

Off-site manager allowedYes

Owner-use limitsNone stated. Time-share ownership is prohibited (Master Deed 4.6). Owner may not use the unit itself as a rental office (dispense keys, book rentals) per Master Deed 4.5.

Registrationunstated. No rental registration requirement appears in the deed, bylaws or rules. Bylaws 11.1-11.2 require new owners to inform the Board of identity and proposed transfers. Master Deed 11.2 requires a copy of the owner's HO-6 policy to be filed with the Association or its manager.

Advertising rulesNo 'For Sale' or 'For Rent' signs, advertising or displays on any part of the Regime Property except as the Board determines (Master Deed 9.1.b); Rules prohibit signs displayed to the public on units or Association property without prior Board approval. The Commercial Unit owner holds an exclusive sign easement over lobby, hallways, pool decks and parking areas (Master Deed 9.8). No restriction on off-property/online advertising or use of the resort name is stated.

Vote to change rental rulesGeneral Master Deed/Bylaws amendments: two-thirds (2/3) of the Percentage Interest at a special meeting (Master Deed 14.2). However, Section 4.5 (use/rental restrictions) 'may not be amended without the consent of the Owner of the Commercial Unit', all of Article IV requires Grantor consent (4.8), and the Section 5.4 commercial-activity monopoly may not be amended without consent of both the Commercial Unit owner and the Grantor.

What the documents say (10)

“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 he or she does not use the Unit itself for the business of renting, including, without limitation, to dispense keys, to book rentals, or to otherwise act as the office for renting the Unit itself or for renting any other property, which conduct is expressly prohibited.”Master Deed, Article IV, Section 4.5, page 16

“The restrictions contained in this Section 4.5 may not be amended without the consent of the Owner of the Commercial Unit.”Master Deed, Article IV, Section 4.5, page 16

“No Owners shall engage in or permit time share ownership of a Residential Unit.”Master Deed, Article IV, Section 4.6, page 16

“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, game room, real estate sales, accommodations, health spa, night clubs or any combination of such uses.”Master Deed, Article V, Section 5.4, page 18

“Only the Owner of the Commercial Unit shall be entitled to conduct commercial activities on the Regime Property which shall be generally limited to those areas of the Commercial Unit or Limited Common Elements for the Commercial Unit except as otherwise permitted by specific easement granted within or prior to this Master Deed.”Master Deed, Article V, Section 5.4, page 18

“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, Section 9.1.b, page 29

“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, Section 9.1.l, page 30

“It is also each owner's responsibility to ensure that his/her rental agents and guests understand and observe all rules and regulations.”Rules and Regulations (clean copy), GENERAL, page 1

“Owners utilizing the on-site rental management company will have towels provided for their renters and guests upon check-in. Owners using a third-party rental company are kindly requested to update their check-in information to reflect that pool towels are not provided at the property.”Owner letter (Ally Management), Pool Towels, page 2

“BUSINESS ACTIVITY: No trade or business activity may be conducted on Association property or in and around a specific unit, unless prior Board approval is obtained.”Rules and Regulations (clean copy), BUSINESS ACTIVITY, page 1

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 renters are deed-protected delegates with the same access to pools, lazy river, spas, garage and roof garden and rules may not discriminate against them, but there is no front-desk check-in for them, the HOA defunded pool towels so only on-site program guests receive them, the Coffee Lounge is prioritized to the Commercial Unit and its customers, and the parking-pass and pool-band process for self-managed guests is unstated.

Amenities for your guestsMost, not all

Off limits to your guestsPool towels are no longer provided on pool decks; only guests of the on-site rental management company receive towels at check-in (owner letter). The HOA budget line 41600 Pool Towel Laundering went from $18,000 (2024, actual $24,824 through September vs $13,500 budgeted) to $0 in the 2025 and 2026 budgets, Coffee Lounge is a Limited Common Element of the Commercial Unit; residential owners have non-exclusive use subject to availability, advance-reservation rules set by the Commercial Unit owner, and Commercial Unit priority in conflicts (Master Deed 5.5.a)

Wristbands & parking passesParking passes are 'provided by the Association and/or on-site' (Rules, PARKING); no cost or per-unit limit stated. Board approved purchase of pool bands at nine cents per band in June 2023; who issues them to off-program guests is unstated. Only one parking space per vehicle; oversized vehicles restricted; towing enforced.

Check-inunstated for off-program guests. The front desk and guest services desk are part of the Commercial Unit, and Master Deed 4.5/5.4 bar owners from dispensing keys from the unit or from common elements, so a self-managing owner must handle keys/access another way. Owner letter shows third-party-rental owners maintain their own check-in information.

TrashTrash to be disposed of in designated locations (trash chute, receptacle or off-site dumpsters); never left in hallways or common areas. Trash chutes are General Common Elements. Board funded $9,000 for seasonal common-area garbage removal (Memorial Day to Labor Day) in 2023.

ElevatorsThree main passenger elevators plus a service elevator are Common Elements maintained by the Association. Oct 2024 minutes document water-damaged, 23-year-old elevators with obsolete parts and modernization proposals of $451,107 (one car) to $1,314,433 (three cars); an elevator consultant was retained at $8,500/yr. No vendor-elevator-only rule stated.

Housekeeping & linenunstated. Housekeeping carts and personal items may not be stored in hallways or stairwells; luggage carts are for owners, guests and tenants and must be returned immediately and not kept overnight in a unit. Guest laundry and commercial laundry are part of the Commercial Unit.

What the documents say (9)

“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. Persons using the Common Elements by delegation shall be subject to the same Rules and Regulations as may from time to time be imposed upon Owners pursuant to Section 7.2 of the Association's Bylaws.”Master Deed, Article V, Section 5.3.a, page 17

“Furthermore, Rules and Regulations shall not discriminate against persons who are delegates pursuant to Section 5.3.a of the Master Deed.”Bylaws, Article VII, Section 7.2, page 13

“Notwithstanding the above, the Owners of the Residential Units shall have the non-exclusive common right to use the Coffee Lounge area with the Owner of the Commercial Unit subject to availability and certain rules and booking procedures which may be implemented by the Owner of the Commercial Unit including, but not limited to, an advance reservation requirement. In the event of a conflict, the use of the Coffee Lounge by the Owner of the Commercial Unit shall have priority.”Master Deed, Article V, Section 5.5.a, page 18

“PARKING: Vehicles should be parked only in marked designated spaces using parking passes provided by the Association and/or on-site. Only vehicles fitting within one parking space may be parked on the premises.”Rules and Regulations (clean copy), PARKING, page 1

“MOVED; to accept the proposal to purchase pool bands at nine cents per band.”Board Minutes June 13, 2023, Item 3, Pool Bands, page 3

“Please be advised that pool towels will no longer be available on the pool decks starting this week.”Owner letter (Ally Management), Pool Towels, page 2

“LUGGAGE CARTS: Luggage carts are to be used only by owners, guests, and tenants for their use in the transport of personal effects and returned to entrance storage areas immediately after use and shall not be stored overnight in an owner's unit.”Rules and Regulations (clean copy), LUGGAGE CARTS, page 1

“As an appurtenance to the Commercial Unit, there is also granted to the Owner of the Commercial Unit the perpetual, exclusive right of access over and across all pool decks, sun decks and pool areas, now existing or hereinafter construction, for the purpose of conducting the sale of food, beverage, and resort retail items such as suntan lotions, swim apparel, and the like.”Master Deed, Article III, Section 3.6.b, page 14

“41600 - Pool Towel Laundering 18,000 - (18,000)”2025 Approved Operating Budget, Repairs & Maintenance, page 1

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.

No local-contact, response-time, trash-hauling or service-elevator rules, but the owner must arrange keys, parking passes and towels for every guest, is liable for guests' and rental agents' conduct under an unpublished per-day fine schedule backed by abatement and judicial-sale remedies, bears within-deductible in-unit losses, must file an HO-6, deposit a key with the Board if asked, and must use licensed, insured contractors within Mon-Sat 8-6 hours.

Locks & keysOwner may not dispense keys from the unit (Master Deed 4.5) and key pick-up/drop-off on common elements is a prohibited commercial activity (5.4). If required by the Board, each residential owner must deposit a key to the unit under Board control for emergency access (9.6); if an owner fails to deposit a key the Association may charge the expense of making one (4.3). No lock-type rule stated.

FinesRules state violations 'may subject the owner to fines as shown in Exhibit A' (schedule not in set) and that balcony-rule violations may fine 'the unit owners and/or guests'. Bylaws 7.3: Board may impose fines 'not to exceed an amount per day to be determined annually by the Board', each day a separate offense, collected as Individual Assessments; 7.5: fines are a lien on the unit and the Board may suspend voting and common-element use (but not ingress/egress). Owner is responsible for conduct of family, guests, tenants, rental agents and contractors and for damage they cause (Rules GENERAL; Bylaws 7.4; Master Deed 9.1). 2024 YTD fines/late fee income was $14,958.89 against $0 budget. Master Deed 9.4: after notice, a hearing and continued violation the Board may enter the unit and abate the condition at the owner's expense (a lien), and may give 10 days' notice and sue for a decree terminating the owner's right to occupy and ordering a judicial sale of the unit, with the owner barred from re-buying.

Contractors & vendorsContractors must be licensed in Horry County and the City of Myrtle Beach, insured for liability and workers' comp, with a certificate of insurance naming the Association as additional insured filed with the Association; hours 8am-6pm Monday-Saturday, no work Sundays; owner liable for contractor damage to common elements. No structural or exterior alteration without prior written Board approval; units not designed for washers/dryers cannot add them.

AlsoOwner maintains everything inside the unit including HVAC, water heater, appliances, window glass and sliding doors (Master Deed 3.5.c, 4.3). Owner must carry an HO-6 or Association-approved policy and file a copy with the Association (11.2) - the Association also bills a group HO6 line ($55.84/mo in 2026). Window treatments must have a uniform white backing; no clotheslines, antennas or satellite dishes on balconies; balconies only for normal patio furniture. Electric service may be terminated when assessments are 20 days delinquent (6.4). All disputes with the Association other than assessment collection go to mandatory negotiation/mediation/binding arbitration (Article XVIII). Master Deed 11.7/4.3: master-policy deductibles are paid by the party who would be liable for the loss, and an owner pays the part of any in-unit repair that falls within the deductible. Master Deed 17.1: renters and occupants are bound by the Master Deed and Rules by the mere act of occupancy.

What the documents say (11)

“Violation of the rules and regulations may subject the owner to fines as shown in Exhibit A.”Rules and Regulations (clean copy), GENERAL, page 1

“In addition to any other remedy to which the Association or any Property Owner may be entitled, the Board of Directors may impose against a Property Owner reasonable fines not to exceed an amount per day to be determined annually by the Board of Directors and consistently applied for any violation of the terms of the Act, the Master Deed, these Bylaws, or of the Regulations promulgated pursuant hereto. Such fines shall be collected as Individual Assessments. Each day during which a violation occurs or continues may be deemed a separate offense.”Bylaws, Article VII, Section 7.3, pages 13-14

“The Board shall have the power to impose reasonable fines, which shall constitute a lien upon the property of the violating Property Owner, and to suspend a Property Owner's right to vote or to use the common elements for violation of any duty imposed under the Act, the Nonprofit Act, the Master Deed, these Bylaws, or any Rules and Regulations duly adopted under the Bylaws; provided, however, nothing herein shall authorize the Association or the Board to limit ingress and egress to or from a Unit.”Bylaws, Article VII, Section 7.5, page 14

“To facilitate entry in the vent 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, Section 9.6, page 33

“Contractors used must be licensed in Horry County as well as the City of Myrtle Beach. All contractors must be insured for liability and workman's comp issues and a certificate of insurance filed with the Association indicating the Association as an additional insured. Contractor hours should be 8am-6pm, Mondays-Saturdays. No work is allowed on Sundays.”Rules and Regulations (clean copy), UNIT MAINTENANCE/CONTRACTOR WORK, page 1

“Each Property Owner shall be responsible for obtaining, and shall obtain an HO-6 policy or other suitable policy approved by the Association, at his or her sole expense, insurance covering the personal property, fixtures, decorations, and furnishings within his or her own Unit, and the additions and improvements made by him or her to the Unit.”Master Deed, Article XI, Section 11.2, page 37

“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, Section 6.4, page 24

“Units that were not originally designed for washers and dryers cannot add washers or dryers.”Rules and Regulations (clean copy), ALTERATIONS & ADDITIONS, page 1

“Furthermore, if the Property Owner refuses to come to the hearing or if, after hearing and finding as aforesaid and failure of the Property Owner to desist from such violation or to take such corrective action as may be required, 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 owned by him on account of the violation of a rule or breach of covenant or provision as aforesaid and ordering that all right, title, and interest of the Property Owner in the Property shall be sold at a judicial sale upon such notice and terms as the court shall establish”Master Deed, Article IX, Section 9.4, page 33

“Violations of these rules may subject the unit owners and/or guests to fines.”Rules and Regulations (clean copy), PORCHES & BALCONIES, page 1

“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, Section 11.7, page 38

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 climbed about 26% over three years to $993/month on a roughly 477 sq ft unit, insurance and HO6 are a quarter of the budget after a 36% jump in 2024, 2024 operations ran $54k over budget, reserves lost $581k through 9/2024 with a $1.3M elevator modernization unresolved and garage/curtain-wall work under way, and a 2023 special assessment occurred; the 16.7% reserve contribution, falling insurance lines and strong inclusions are the offsets.

2026 budget$2,398,598

Dues change+5.9% on the year

Reserves17% of budget

Reserve balance$950,609

Reserve studyOn file

Special assessments2023 unstated (2024 budget shows a '2023 Special Assessment Savings' credit of $66,506 and the 9/30/2024 balance sheet carries $18,206.43 Special Assessments Receivable) unstated; 2024 budget applied the savings against special projects (10th floor pool deck expansion $126,000, pool furniture, LED signage, ADA pool lift, dune crossover, ice machines); 2025 pending/undecided - elevator modernization proposals of $99,361 per car (door package) up to $1,314,433 for three passenger traction elevators; funding source not decided in minutes Elevator modernization after water damage from two hurricanes and a water main break; parts obsolete at 23 years; 2025 up to $86,000 approved from operating/reserve funds (not a special assessment); garage conduit/pipe hanger ($32,473) and outdoor pool bridge removal ($23,500) deferred for more quotes 2025 capital projects: hallway cameras, 9th floor ceiling, 10th floor planters, indoor pool resurfacing, mobile restroom/HVAC fencing, plexiglass pool enclosure; 2024 unstated - garage concrete remediation and lobby curtain wall replacement (contractor selected; outdoor pool closed during construction) funding source not stated in the minutes; the 2024 reserve ledger shows $36,664 of concrete repairs through September Garage concrete remediation and curtain wall system to underside of 4th floor; 2023 reserve-funded projects (not a special assessment): roof replacement completed and paid in full; fire sprinkler system engineering under way with a 50% contractor deposit paid; garage concrete repairs ongoing; photoluminescent stairwell striping completed; 10th-floor pool landscaping quoted 2023 capital projects reported in the June 13, 2023 facility report; the 2024 reserve ledger then shows $253,722 fire system and $204,162 pool decking spending through September 2024

InsuranceInsurance is billed as a separate monthly line. Monthly Insurance Assessment revenue (acct 30300): 2024 $524,192; 2025 $501,630 (-$22,562); 2026 $485,000 (-$16,630). Per residential unit per month: 2024 $216.16, 2025 $206.86, 2026 $200.00. Separate Master/Group HO6 pass-through (acct 32600/83310): 2023 $170,887; 2024 $173,929; 2025 $163,998; 2026 $130,000 (per unit $74.71 -> $70.45 -> $55.84). Insurance expense jumped from $384,427 in 2023 to $524,192 in 2024 (+36%) before easing. Combined 2026 insurance + HO6 = $615,000 = 25.6% of budget. 9/30/2024 balance sheet: Insurance Escrow $121,892.04, Prepaid Insurance $389,175.81, Insurance Claim Expense Receivable $5,176.46; 2024 YTD Insurance Claims expense $7,369.20. 2014 HO6 group policy (Lloyds of London): $25,000 blanket contents/improvements/loss of rents per 1-bedroom unit, $1,000 deductible, $5,000 flood/EQ/wind deductible, $1,000,000 personal liability. Hurricane Ian claim under review in June 2023. Master Deed 11.7: the Board sets deductibles; a deductible is paid by the party liable for the loss (an owner bears the within-deductible part of in-unit repairs, 4.3). 11.5: liability policy minimums $1,000,000 per person, $3,000,000 per occurrence, $500,000 property damage. 12.1: mandatory reconstruction after casualty applied only through December 31, 2020; thereafter, if two-thirds or more of the property is destroyed, proceeds are distributed and there is no rebuild unless owners unanimously agree. 2024 YTD actuals ran under budget on both insurance lines (master $363,058 vs $393,144; HO6 $77,990 vs $130,447) while total operating expenses ran $53,882 over budget (repairs and maintenance $113,483 over), leaving a $44,675 YTD operating loss.

Wind deductible2014 certificate: Named Storm $28,000; All Other Wind/Hail $10,000; Earthquake $80,000 (Building $24,706,784 replacement cost, 195 units). Current deductibles unstated.

Flood2014 certificate: flood coverage $24,706,784 with $25,000 deductible; Flood Zone VE; Biggert-Waters compliant. Current flood coverage unstated.

DelinquencyAssessment delinquent on the 15th of the month (Bylaws 5.9.f); default interest 18% per annum, $50 late fee after 30 days, Board may accelerate the annual assessment, foreclose the lien, and terminate electric service after 20 days (Master Deed 6.2.f, 6.4, 6.5). Buyer in a voluntary sale is jointly liable for seller's unpaid assessments (6.8). At 9/30/2024: Regular Assessments Receivable $124,942.85, Allowance for Doubtful Accounts $19,259.57, Bad Debt expense YTD $10,614.89 vs $1,500 budget; budget carries a $25,000 'Operating Loss Recovery' line in 2025 and 2026. In a lien foreclosure the Association is entitled to rental from the owner from the delinquency date (at Grand Strand comparable rates) and to a receiver for the unit (Master Deed 6.5).

What the documents say (22)

“30300 - Monthly Insurance Assessments 501,630 485,000 (16,630)”2026 Approved Operating Budget, REVENUES, page 1

“30300 - Monthly Insurance Assessments 524,192 501,630 (22,562)”2025 Approved Operating Budget, REVENUES, page 1

“51-83300-00 Insurance Expense $384,427.00 $524,192.00”2023 vs 2024 Budget, page 1

“114 A Unit (Oceanfront) 0.0049485 49.51$ 687.97$ 200.00$ 55.84$ 993.33$ 55.39$”2026 Approved Operating Budget, 2026 Monthly Dues table, page 1

“1 Commercial Unit 0.0400008 5,561.23 1,616.70 - 7,177.93$ 524.33”2026 Approved Operating Budget, 2026 Monthly Dues table, page 1

“TOTAL OPERATING EXPENSES 2,263,359 2,398,598 135,239 5.98% 6%”2026 Approved Operating Budget, page 1

“TOTAL OPERATING EXPENSES 2,057,277 2,263,359 206,083 10.02% 10%”2025 Approved Operating Budget, page 1

“39500 - YTD General Reserve Funding 300,000 400,000 100,000”2026 Approved Operating Budget, Other Expenses, page 1

“2023 Special Asssessment Savings -$66,506.00”2023 vs 2024 Budget, Reserve Special Projects, page 1

“[The association manager and staff accountant] presented the proposed 2025 operating budget with a 14.83% increase. which resulted in a $125 monthly increase in dues. Board members did not approve the proposed budget and agreed to meet again to discuss and approve a revised budget.”Board Minutes October 23, 2024, Item 6.E, page 4

“With regard to the balance sheet, [the staff accountant] reported that there is a net YTD operating net loss of $42,009 and a net loss for reserves of $578,859 as of 9/30/2024.”Board Minutes October 23, 2024, Item 4.A, page 1

“Elevator modernization for three (3) passenger traction elevators - $1,314,433”Board Minutes October 23, 2024, Item 4, page 2

“[The association manager] reported that the prepared reserve study was received, and it required a good deal of corrections with regard to the components the HOA was responsible for maintaining.”Board Minutes October 23, 2024, Item 6.A Reserve Study, page 2

“Total Reserve Expenditures $35,338.56 $0.00 ($35,338.56) $738,591.34 $0.00 ($738,591.34) $0.00”Board Minutes October 23, 2024 (Budget Comparison Report 9/30/2024), page 11

“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, Section 6.2.f, page 23

“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, Section 6.1.h, page 21

“Grantor has made an initial contribution in the amount of $900,000.00 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 and that the Building and improvements, on the date submitted to this Master Deed, are in good condition, taking into consideration the reserves for repairs and the fact that each of the Common Elements have a remaining useful life on such date.”Master Deed, Article XIX, page 52

“Named Storm $28,000 Earthquake $80,000 Flood $25,000 All Other Perils & All Other Wind/Hail $10,000”Evidence of Property Insurance (2014), DEDUCTIBLES, page 1

“The Association may borrow money for the purpose or 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”Bylaws, Article II, Section 2.2.o, page 6

“in any suit for the foreclosure of said lien, the Association shall be entitled to rental from the Owner of any Unit from the date on which the payment of any assessment or installment thereof became delinquent and shall be entitled to the appointment of a receiver for said Unit.”Master Deed, Article VI, Section 6.5, page 24

“Total Expense $145,382.65 $157,231.91 $11,849.26 $1,468,969.41 $1,415,087.19 ($53,882.22) $1,886,783.00”Board Minutes October 23, 2024 (Budget Comparison Report 9/30/2024), page 11

“45-39500-00 General Reserve Funding $223,335.00 $170,494.00”2023 vs 2024 Budget, page 1

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.

Board is owner-elected with ordinary 2/3 amendment rules and good owner-access rights, but the Commercial Unit owner holds a perpetual deed-level monopoly on rental-management, front-desk, key, communications and signage services plus a property-wide renting/sales easement that cannot be amended without its and the Grantor's consent, Grantor rights remain assignable and the Grantor may be hired as manager, and all disputes are forced into binding arbitration.

StructureOne association

Commercial unitYes, with its own deed rights

On-site operatorBrittain Resorts & Hotels (its executives attend Board meetings and present the facility report); on-site rental management company referenced in owner letter. Association management: Empress Management, LLC (at least Dec 2018-Jun 2023); Ally Management, Inc. (named as additional interest on the 2014 insurance certificate and managing again by Oct 2024).

BoardBoard of 3, 5 or 7 directors as the Board sets (5 directors in 2023-2024 minutes); three-year terms after the Developer Control Term; directors removable with or without cause by 2/3 of Percentage Interest; vacancies filled by remaining directors; directors serve without compensation (Board approved up to $1,000/yr travel reimbursement per director in Oct 2024). Developer Control Term ran until the later of Grantor owning fewer than 3 units or December 31, 2010; the set does not document when it ended, but the 2023 and 2024 minutes show a five-member board electing its own officers.

Developer rightsGrantor (Myrtle Beach Oceanfront Development Company, LLC) consent is still required to amend Article IV (unit use/rental), Section 5.3 (common element use), Section 5.4 (commercial monopoly), Section 5.6 (operation/maintenance) and any Grantor right (14.1.ii); Grantor may unilaterally amend to correct scrivener errors or satisfy a lender (14.3); Grantor reserved perpetual, assignable utility/communications easements over the Common Elements and a construction/sales/use easement; Grantor rights are assignable to its lender or a subsequent developer and that assignability cannot be amended without recorded consent (15.2); a Grantor representative on the Board need not recuse on management contracts with Grantor. Grantor's independent right to approve unit alterations lapsed December 31, 2010. Bylaws 4.1: the Grantor or an affiliate of the Grantor may be employed as the Association's managing agent.

Commercial-unit rightsThe Commercial Unit owner has the exclusive right to conduct commercial activity on the Regime Property, including rental management services, front desk, concierge, key pick-up/drop-off, guest laundry, furnishing cable/internet/telephone/movie service, food and beverage and retail sales on all pool decks, cell/communications towers on the rooftop (with right to lease to third parties), an exclusive perpetual sign easement over lobby, hallways, pool decks and parking areas including control of moveable type on resort signage, priority use of the Coffee Lounge, the right to alter non-structural parts of the Commercial Unit without Board consent, and the right to lease parts of the Commercial Unit to third parties. Rules and Regulations that affect the Commercial Unit do not bind its owner without written consent (Bylaws 7.2). The Commercial Unit owner recovers attorney fees when enforcing the commercial-activity restrictions and may seek a TRO outside arbitration. None of these rights can be amended without the Commercial Unit owner's written consent (14.1.iii). Master Deed 9.7 also grants the Commercial Unit owner (and reserves to the Grantor) a non-exclusive easement over the whole Regime Property for 'exhibiting, renting, and selling the Units' and for 'ancillary commercial services' to owners and occupants.

VotesOne vote per unit weighted by Percentage Interest (every residential unit identical at 0.00494845; Commercial Unit 0.0400008). Quorum one-third of Percentage Interest. Ordinary decisions pass by 51% of Percentage Interest represented at a meeting with quorum. Budget adopted by Board is deemed approved unless 2/3 of Percentage Interest vote to amend it. Special assessments require approval of a majority of Property Owners (Bylaws 5.5). Borrowing for amenity improvements over 5% of budgeted gross expenses needs 51% owner approval; other borrowing needs no owner vote. Acquisition of added common elements needs more than 50%. Proxies valid only for the next meeting. Special meetings must be called on the written request of owners holding 10% of the Percentage Interest (Bylaws 1.8). Owners may inspect the books on 14 days' written notice (Master Deed 6.10) and the Board must furnish current governing documents and financial statements to any prospective purchaser (Bylaws 2.2.m).

Changing the deedMaster Deed and Bylaws: proposed by majority of the Board or owners holding more than 50% of Percentage Interest, then approved by two-thirds (2/3) of Percentage Interest at a special meeting called 20-60 days after proposal; effective on recording. Unanimous consent of all owners and mortgagees to change Percentage Interests or the assessment basis. Grantor and Commercial Unit owner consents required for their reserved rights as described above. Bylaws amendments also require 2/3 and must be recorded as a Master Deed amendment.

Disputes or lawsuitsMaster Deed Article XVIII imposes mandatory notice, negotiation, mediation and final binding arbitration (Uniform Arbitration Act) on all claims among owners, the Association, Grantor and contractors, except assessment collection suits, TROs by the Association or Commercial Unit owner, and owner-vs-owner suits independent of the deed; a claimant who misses the 30-day mediation or 15-day arbitration windows forfeits the claim; loser-pays shifting of post-mediation costs against settlement offers. Article XIX discloses the building was constructed in 1994 and that the prior owner was in a construction-defect lawsuit (Patricia Grand, LP v. Dargan Construction Company, Inc. et al., Horry County Case No. 2002-CP-26-643) alleging moisture intrusion and exterior wall damage; units accepted 'AS IS' with Grantor disclaiming mold/mildew/moisture claims. 2023 minutes: Hurricane Ian insurance claim pending; one director formally dissented that the adopted Board Code of Ethics contained language 'against the Master Deed'. 2024 minutes: a resident's repeated violations of the rules and Master Deed referred to the Association attorney; Corporate Transparency Act filing discussed.

What the documents say (19)

“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.”Bylaws, Article II, Section 2.1, page 4

“Grantor, its successors and assigns, shall have the right to designate and select the persons who shall serve as members of each Board of Directors of the Association until the later of the following two events (i) the Grantor, its successors or assigns, no longer owns at least three (3) or more Units or (ii) December 31, 2010 (the "Developer Control Term").”Bylaws, Article II, Section 2.3, page 6

“After the expiration of the Developer Control Period, Directors shall serve three-year terms.”Bylaws, Article II, Section 2.3, page 6

“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, Section 14.2, page 42

“iii) any alteration to the rights or privileges granted or reserved hereunder in favor of the Commercial Unit and the Owner thereof which are granted thereto, reserved herein, exclusively for the benefit of the Commercial Unit and the Owner thereof, which said rights and privileges granted and reserved exclusively unto the said Commercial Unit and the Owner thereof shall only be altered, amended, modified or further granted only with the express written consent of the Owner of the Commercial Unit.”Master Deed, Article XIV, Section 14.1, page 42

“The foregoing restriction on commercial activities in this Section 5.4 may not be amended without the consent of the Owner of the Commercial Unit and the Grantor, their successors and assigns.”Master Deed, Article V, Section 5.4, page 18

“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.”Bylaws, Article VII, Section 7.2, page 13

“Telephone, internet access, wireless broadband access, televisions, cable access, and in room movie service may be provided to the Regime by the Owner of the Commercial Unit, its successors and assigns.”Master Deed, Article IX, Section 9.3, page 31

“The Owner of the Commercial Unit shall have the exclusive right to control any moveable type located upon any signage within the Regime.”Master Deed, Article IX, Section 9.8, page 34

“Any representative of Grantor serving on the Board of Directors of the Association shall not be required to disqualify himself upon any vote from any management contract or other matter between Grantor and the Association where the Grantor may have a pecuniary or other interest.”Master Deed, Article XV, Section 15.2, page 44

“At any meeting at which a quorum is present, the affirmative vote of the Property Owners owning fifty-one percent (51%) or more of the amount of Percentage Interest in the Common Elements which is represented at the meeting by Owner presence or by proxy shall be required to adopt decisions submitted to the Property Owners for a vote pursuant to this Master Deed or pursuant to the Bylaws”Master Deed, Article VII, Section 7.2, page 27

“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")”Bylaws, Article V, Section 5.5, page 10

“This Section 18.3d. 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. The arbitration award ("Award") shall be final and binding, and judgment may be entered upon it in any court of competent jurisdiction to the fullest extent permitted under the laws of the State of South Carolina.”Master Deed, Article XVIII, Section 18.2.d, page 49

“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 1994 and that the prior owner of the Building as "Plaintiff", is engaged in a pending lawsuit with, among other defendants, the general contractor and subcontractors responsible for the Building's construction, alleging, among other things, that the defective workmanship and materials of the defendants led to moisture intrusion and damage to the infrastructure and exterior walls of the Building.”Master Deed, Article XIX, page 52

“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.”Bylaws, Article IV, Section 4.2, page 9

“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 the Commercial Unit, 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, Section 9.7, page 34

“Grantor, or an affiliate of Grantor, may be employed as managing agent or manager.”Bylaws, Article IV, Section 4.1, page 9

“Make available to any prospective purchaser of a Residential Unit, any Property Owner of a Residential Unit, any first mortgagee, and the holders, insurers, and guarantors of a first mortgage on any Residential Unit current copies of the Master Deed, the Articles of Incorporation, the Bylaws, Rules and Regulations governing the Residential Unit, and all other books, records, and financial statements of the Association that the Board deems appropriate”Bylaws, Article II, Section 2.2.m, page 5

“Special meetings of the Association may be called at any time by the President of the Board or by a majority of the Board and shall be called upon the written request of Property Owners owning ten percent (10%) of the Percentage Interest in the Common Elements.”Bylaws, Article I, Section 1.8, page 2

03 Pros and cons

For the owner who runs it themselves.

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

Working for you

Owners may rent 'on any basis' - short-term, personally or through any rental company - with no minimum stay and no requirement to join the on-site program; the owner letter confirms owners use third-party rental companies (Master Deed Art. IV Sec. 4.5, p.16; Owner letter p.2)
Renters are expressly treated as the owner's delegates with the same right to use all General Common Elements (pools, lazy river, spas, roof garden, garage) and the Bylaws forbid rules that discriminate against delegates (Master Deed Sec. 5.3.a, p.17; Bylaws Sec. 7.2, p.13)
No rental registration, rental-agent approval, advertising disclaimer, local-contact or response-time requirement appears anywhere in the deed, bylaws or rules (Master Deed Art. IV & IX; Rules and Regulations p.1)
Dues include in-unit electricity, water/sewer, cable TV, in-unit phone, WiFi, interior pest control, trash, security and a group HO6 policy, so a self-managing owner has few separate utility bills (Master Deed Sec. 6.1.h, p.21; 2026 Budget p.1)
Board is owner-elected to three-year terms, the Developer Control Term ran until at least Dec 31, 2010 (later if the Grantor still held three or more units), and management contracts are capped at three years with 90-day no-fee termination (Bylaws Sec. 2.3 p.6, Sec. 4.2 p.9)
Reserve funding, cut from $223,335 (2023) to $170,494 (2024), has since been raised sharply to $300,000 (2025) and $400,000 (2026), now 16.7% of budget, and a reserve study has been received in draft (2023 vs 2024 Budget p.1; 2026 Budget p.1; Board Minutes Oct 23, 2024 p.2)
Insurance assessment per unit has fallen two years running ($216.16 -> $206.86 -> $200.00/mo) and the group HO6 charge fell from $74.71 to $55.84/mo (2024, 2025 and 2026 Budgets, dues tables p.1)
Every residential unit carries the identical percentage interest and identical dues, so there is no penalty for unit type or floor (Master Deed Exhibit C p.59; 2026 Budget p.1)
Owners may obtain a status-of-assessments statement before closing and foreclosure buyers are not liable for prior delinquencies (Master Deed Sec. 6.7-6.8, p.25)
The Board must give any prospective purchaser current copies of the Master Deed, Articles, Bylaws, Rules and financial statements, owners may inspect the books on 14 days' notice, and quarterly financials with a delinquency report are required (Bylaws Sec. 2.2.m p.5, Sec. 5.9.f pp.11-12; Master Deed Sec. 6.10 p.26)
Owners holding 10% of the Percentage Interest can force a special meeting and two-thirds can remove a director with or without cause (Bylaws Sec. 1.8 p.2, Sec. 2.4 p.6)
Both insurance lines ran under budget through September 2024 (master $363,058 vs $393,144; group HO6 $77,990 vs $130,447) before the 2025 and 2026 budgets were cut (Board Minutes Oct 23, 2024, Budget Comparison p.11)

Watch-outs

The Commercial Unit owner holds a deed-level, perpetual monopoly on front desk, concierge, key pick-up/drop-off, rental management services, guest laundry, pool-deck food/retail and resort signage; owners may not dispense keys or book rentals from the unit or common elements, so off-program guests get no front-desk check-in and the owner must solve access another way (Master Deed Sec. 4.5 p.16, Sec. 5.4 p.18, Sec. 9.8 p.34)
These commercial-unit and Grantor rights cannot be amended without the written consent of the Commercial Unit owner and the Grantor (whose rights are assignable to a lender or successor developer), so owners cannot vote them away even with 2/3 support (Master Deed Sec. 14.1 p.42, Sec. 15.2 p.44, Sec. 5.4 p.18)
Dues rose 7.97% (2024), 9.96% (2025) and 5.9% (2026) to $993.33/month for a roughly 477 sq ft one-bedroom; a 14.83% / $125-per-month increase was proposed for 2025 before being pared back (2023-2026 Budgets p.1; Board Minutes Oct 23, 2024 p.4)
Elevator modernization costing $451,107 for one car up to $1,314,433 for all three (door-only packages from $99,361 per car) is unresolved; elevators are 23 years old with obsolete parts and water damage from two hurricanes and a water-main break (Board Minutes Oct 23, 2024 p.2)
Reserves ran a $581,140 net loss through 9/30/2024 after $738,591 of reserve spending (fire system $253,722, pool decking $204,162, concrete $36,664), leaving about $950,609 in reserve cash/CDs against a 1994-vintage oceanfront building; the reserve study received in Oct 2024 'required a good deal of corrections' (Board Minutes Oct 23, 2024 pp.2, 9, 11)
A 2023 special assessment occurred (amount not in the set; $66,506 'savings' credited in 2024 and $18,206 still receivable) and garage concrete remediation plus a lobby curtain-wall replacement are under way, closing the outdoor pool and part of the lobby for weeks (2023 vs 2024 Budget p.1; Board Minutes Oct 23, 2024 p.2; Owner letter p.1)
Insurance plus group HO6 consume $615,000 (25.6%) of the 2026 budget; the master premium jumped 36% in 2024 ($384,427 to $524,192) and the only deductible data is a 2014 certificate (Named Storm $28,000, Flood $25,000, Flood Zone VE) (2023 vs 2024 Budget p.1; 2026 Budget p.1; Evidence of Insurance 2014 p.1)
Pool towels are no longer provided for guests of third-party-rental owners while on-site program guests receive them at check-in; parking passes come from the Association 'and/or on-site' with no stated process for self-managed guests (Owner letter p.2; Rules PARKING p.1)
Fines are 'as shown in Exhibit A' which is not in the document set, fines may be set per day and become a lien, and the Board may suspend common-element use for violations by an owner's guests or rental agents (Rules GENERAL p.1; Bylaws Sec. 7.3 and 7.5 pp.13-14)
Only pets owned by unit owners are allowed, so an owner cannot market the unit as pet-friendly; resort is fully non-smoking including balconies; no grilling anywhere (Rules PETS, SMOKING, GRILLING p.1)
The Association may terminate electric service to a unit 20 days after a missed assessment, charge 18% interest and a $50 late fee, and a buyer is jointly liable for a seller's unpaid assessments (Master Deed Sec. 6.2.f p.23, Sec. 6.4 p.24, Sec. 6.8 p.25)
All owner disputes with the Association, operator or Grantor (other than collections) must go through mandatory negotiation, mediation and binding arbitration with short forfeiture deadlines and loser-pays cost shifting (Master Deed Art. XVIII pp.47-52)
The deed discloses 1994 construction with a prior moisture-intrusion construction-defect lawsuit and units sold 'AS IS' with Grantor disclaiming mold and moisture claims (Master Deed Art. XIX pp.52-53)
The Association may borrow and pledge assessments and reserves for repairs or budget shortfalls without any owner vote (Bylaws Sec. 2.2.o p.6)
After notice and a hearing, the Board may enter a unit to abate a violation at the owner's expense (secured by a lien) and, for a continued violation, may give 10 days' notice and sue for a judicial sale of the unit with the owner barred from re-buying it (Master Deed Sec. 9.4 pp.32-33)
Master-policy deductibles are paid by whichever party is liable for the loss, so an owner bears the within-deductible part of in-unit damage; the only deductible data is the 2014 certificate (Named Storm $28,000, Flood $25,000, other $10,000) (Master Deed Sec. 11.7 p.38, Sec. 4.3 p.15; Evidence of Insurance 2014 p.1)
The HOA cut its pool-towel laundering line from $18,000 (2024) to $0 in the 2025 and 2026 budgets after 2024 towel costs ran $24,824 against $13,500 budgeted through September, so towels are now an on-site program perk only (2025 and 2026 Budgets p.1; Board Minutes Oct 23, 2024 p.10)
Operating expenses ran $53,882 over budget through September 2024 (repairs and maintenance $113,483 over, led by pool supplies, maintenance materials, pest control, elevator and fire-system lines), producing a $44,675 YTD operating loss, and the budget now carries a $25,000 'Operating Loss Recovery' line (Board Minutes Oct 23, 2024 pp.10-11; 2025 and 2026 Budgets p.1)
In a lien foreclosure the Association can claim market rent from the owner from the delinquency date and have a receiver appointed for the unit (Master Deed Sec. 6.5 p.24)
The Commercial Unit owner and the Grantor hold an easement over the whole property for exhibiting, renting and selling units and 'ancillary commercial services', and the Grantor or an affiliate may be hired as the Association's manager (Master Deed Sec. 9.7 p.34; Bylaws Sec. 4.1 p.9)
Mandatory rebuild after a casualty applied only through December 31, 2020; if two-thirds or more of the building is destroyed the proceeds are distributed and no rebuild occurs unless owners agree unanimously (Master Deed Sec. 12.1 p.39)

Unit type	Per month	Per year
Residential unit, any type A/B/C/D/E (0.0049485 share, about 0.49%) - 2026 total: regular $687.97 + insurance $200.00 + group HO6 $55.84 + phone/internet $49.51	$993	$11,920
Residential unit, any type - 2025 total: regular $616.25 + insurance $206.86 + HO6 $70.45 + phone/internet $44.38	$938	$11,255
Residential unit, any type - 2024 total: regular $521.65 + insurance $216.16 + HO6 $74.71 + phone/internet $40.44	$853	$10,236
Residential unit, any type - 2023 total	$790	$9,480
Commercial Unit CU-1 (0.0400008 share, about 4.0%) - 2026	$7,178	$86,135
Commercial Unit CU-1 - 2025	$6,654	$79,843
Commercial Unit CU-1 - 2024	$5,964	$71,569

Monterey Bay Suites.

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.

Monterey Bay Suites.

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.