Ocean Park HOA Risk Assessment: Workable with rules

02 The five questions

What the documents decide
before your first guest books.

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

Can you rent it your way?

Favorable

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

The Master Deed allows 'resort or residential accommodations' for tenants and guests with no minimum stay, no on-site-program mandate, no registration and no advertising rule (a 5 on the deed alone), but it is silent on who may manage rentals, the board can adopt unit-use rules, and no current Rules or rental policy is in the set.

Short-term rentalsAllowed

Must use on-site programNo

Owner-use limitsunstated. Master Deed Art. XV restricts each condominium unit to 'normal and customary resort or residential accommodations for the owner or owners thereof, their immediate families, tenants, guests and invitees' with no minimum stay, no cap on rental nights and no requirement to use the hotel's rental program. Timesharing is prohibited (Art. VII). The documents are silent on who may manage rentals; no Rules & Regulations or rental policy is in the set.

Registrationunstated. The Master Deed requires only that a purchaser notify the Association in writing of ownership (Art. XXVII) and permits the Association to require a unit key on deposit (Art. XVIII). No guest or rental registration rule appears in the set, but the board may adopt rules governing use of the units (Art. XIV) and no current Rules & Regulations are in the set.

Advertising rulesunstated; none in the Master Deed, By-Laws or meeting packet.

Vote to change rental rulesMaster Deed: affirmative vote of members owning at least 75% of the basic (statutory) value per Exhibit B, proposed by a board majority or owners of a majority of units; changes to percentage interests or the assessment basis need unanimous owner and mortgagee consent; anything touching the Grantor's (Ocean Park, Inc.) or Lender's reserved rights needs their written consent; Art. V (commercial unit/hotel rights) cannot be changed without consent of the Grantor or the then-owner of the Commercial Unit (Art. V, XXX). By-Laws and Articles: two-thirds of total statutory value. The Commercial Unit's 28.89% share alone exceeds the 25% needed to block a Master Deed amendment.

What the documents say (7)

“Each condominium unit is hereby restricted to provide a normal and customary resort or residential accommodations for the owner or owners thereof, their immediate families, tenants, guests and invitees.”Master Deed, Article XV, OCR page 13 (printed p.10)

“Provided, however, that so long as Ocean Park, Inc. shall retain any ownership interest in any Unit, it may utilize any unit which it owns from time to time, for a sales and rental office, model or other usage for the purpose of selling or renting units. Further still, Ocean Park, Inc., its successors or assigns, may assign this commercial usage right to such other persons or entities as it may choose.”Master Deed, Article XV, OCR page 13

“Provided, however, Interval ownership referred to as "timesharing" shall not be permitted.”Master Deed, Article VII, OCR page 10

“The commercial unit may be used in connection with the rental of units, or other uses normally associated with the operation of a resort condominium or hotel.”Master Deed, Article V, OCR page 8

“All present or future owners, tenants, or any other person who might use the facilities of the condominium in any manner, are subject to the provisions of this MASTER DEED and all documents appurtenant hereto and incorporated herewith, and the mere acquisition or rental of any UNIT, or the mere act of occupancy of any UNIT, shall signify that the provisions of this MASTER DEED are accepted and ratified in all respects.”Master Deed, Article XXXII, OCR page 33 (printed p.30)

“At such meeting, the amendment or amendments proposed must be approved by an affirmative vote of members owning at least seventy-five (75%) percent of the basic value of the condominium property as a whole based upon the values set out in Exhibit "B", in order for such amendment or amendments to become effective.”Master Deed, Article XXX, OCR page 31

“In the administration of the operation and management of the condominium, said ASSOCIATION shall have and is hereby granted the authority and power to enforce the provisions of this MASTER DEED, levy and collect assessments in the manner hereinafter provided, and to adopt, promulgate and enforce such rules and regulations governing the use of the UNITS and COMMON ELEMENTS, as the Board of Directors of the ASSOCIATION may deem to be in the best interest of the condominium.”Master Deed, Article XIV, OCR pages 12-13

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.

Guests get the common elements and the hotel's public areas on parity with hotel guests (Art. IV, IX), but the front desk, lobby, linen rooms and trash chutes sit inside the hotel's Commercial Unit, which writes its own public-area rules, so check-in, keys, housekeeping and even chute access for off-program guests are unstated and will fall to the owner.

Amenities for your guestsSame as program guests

Wristbands & parking passesunstated. The Association may adopt rules giving owners exclusive use of parking spaces (Master Deed Art. IX); the Association owns a financed parking facility/garage (balance sheet; pet policy references a pet area on the 1st floor of the parking garage). No wristband, pass, fee or space-per-unit rule appears in the set.

Check-inunstated. The lobby, registration, cashier, manager and office areas are part of the hotel's Commercial Unit (Art. III), and the Commercial Unit owner writes and enforces the rules for those 'public areas' (Art. IV). Nothing in the set says whether the front desk will check in an off-program guest or hand out keys.

Trashunstated for guests. All trash chutes on floors 2-12 are part of the hotel's Commercial Unit (Art. III) and, unlike the lobby, no easement over them is granted to condo owners or their guests (Art. IV); trash removal ($30,000) is paid by the Association.

ElevatorsCommon elements with a non-exclusive easement for owners, families, guests and invitees (Art. IX); condo guests have an easement across the hotel lobby and corridor to reach elevators and stairs (Art. IV). No service-elevator or move-in rule in the set.

Housekeeping & linenunstated. All linen rooms belong to the Commercial Unit (Art. III); the hotel pet policy refers to 'the housekeeping team', which is the hotel's. No arrangement for off-program owners is documented.

What the documents say (7)

“The owner or authorized occupant of a condominium unit, their guests and invitees, shall have access to and use of the "public areas" of the commercial unit on the same basis as the guests or invitees of the commercial unit.”Master Deed, Article IV, OCR page 8

“The "public areas" shall include any concession area, or other area open to the general public for guests or customers of the owner or owner's lessee of the commercial Unit.”Master Deed, Article IV, OCR page 8

“In addition, the guests, lessees and/or invitees of the owners of the condominium units shall have a nonexclusive easement in, over and across the main lobby and corridor within the commercial unit for the purposes of access to the elevators, stairways or other COMMON ELEMENTS utilized for the purposes of ingress and egress to the residential, condominium units.”Master Deed, Article IV, OCR page 8

“The owner of the commercial unit shall have the authority to promulgate reasonable rules and regulations regarding the "public areas" within the commercial unit and such rules and regulations shall be enforced by the Commercial Unit Owner or Commercial Unit Owner's Lessee.”Master Deed, Article IV, OCR page 8

“The Commercial Unit also consists of those areas which are shown as being cross-hatched and designated on the first floor or ground floor as Laundry, Games, Concess and Snacks; on the Second Floor as Linen, Toilet, Office, Registration, Manager, Cashier, Registration and Lobby; on the Third Floor as Linen and Mech; on the Fourth Floor as Linen; on the Fifth Floor as Ice and Linen; on the Sixth Floor as Linen and Mech; on the Seventh Floor as Linen; on the Eighth Floor as Linen and Mech; on the Ninth Floor as Linen, Mech and Ice; on the Tenth Floor as Linen; on the Eleventh Floor as Linen and Ice; and on the Twelth Floor as Linen and Mech. Also, all trash shoots on floors two through twelve.”Master Deed, Article III, OCR page 6

“Notwithstanding anything provided in this Article Ocean Park Owners Association, Inc., hereinafter identified shall have the right to establish the rules and regulations pursuant to which the owner or owners of any units may be entitled to the exclusive use of any parking space or spaces.”Master Deed, Article IX, OCR page 11

“Pets are Prohibited at any pool areas as well as the fitness center.”Ocean Park Resort Pet Policy, Page 1, item 5

How much work lands on you?

Favorable

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

Documented duties are light (possible key on deposit, in-unit HVAC/appliance/balcony upkeep, liability for guest damage inside the $25,000-$50,000 deductibles) with no local-contact, response-time or service-elevator rules, though off-program check-in and trash logistics are undocumented and building-level door-lock handling is unexplained.

Local contactunstated; no local-agent or response-time rule in the set.

Response timeunstated.

Locks & keysThe Association may require each owner to deposit a unit key under its control for emergency entry (Master Deed Art. XVIII); owners must admit the Association, other owners or the Commercial Unit owner at reasonable times for common-element maintenance (Art. XIX). The 2022 audited bulk-service agreement included $7,200 of 'Door lock maintenance' (none in 2023), and the 2023 annual meeting listed 'Doors - researching how best to address the matters; escutcheon plates', so unit door locks appear to be handled at building level; no lock standard or guest key-handling rule for off-program owners is documented.

FinesNo fine schedule in the set. The Master Deed gives the Association damages, injunctive relief and lien foreclosure for violations, and if the Association wins it recovers costs and attorney's fees while the owner never can (Art. XXXI). Owners are liable for damage caused by their guests or lessees beyond Association insurance proceeds, including any resulting increase in insurance rates (Art. XXXI(b)). Audited 2023 'fines, late fees & other revenues' were only $2,447.

Contractors & vendorsunstated. Any in-unit alteration needs the Association's prior written consent; no balcony enclosure, exterior changes, painting, antennas or wiring through walls or roof (Art. XX).

AlsoOwner maintains and replaces all HVAC/PTAC, appliances, fixtures and utility connections inside the unit, window glass, screens, doors, interior surfaces and the balcony floor, walls, doors and railing; if the owner fails, the Association may enter and do the work at the owner's cost and lien the unit (Art. XXII). For in-unit damage covered by the master policy, the owner pays the portion of repair cost that falls within the policy deductible ($50,000 all perils, $25,000 named storm, $1,250 flood per the 2024 insurance schedule). No nuisance, noise, or anything that raises the insurance rate (Art. XVII). The hotel's pet policy charges guests $20/night or $75/week, limits pets to two per room and 40 lbs, bans five breeds, and makes the pet owner responsible for removal costs and plumbing damage; its application to condo owners is unstated.

What the documents say (7)

“In case of any emergency originating in or threatening any UNIT, regardless of whether the owner is present at the time of such emergency, the Board of Directors of ASSOCIATION or any other person authorized by it, or the Building Superintendent or Managing Agent, shall have the right to enter such UNIT for the purpose of remedying or abating the cause of such emergency, and such right of entry shall be immediate, and to facilitate entry in the event of any such emergency, the owner of each UNIT, if required by the ASSOCIATION, shall deposit under the control of the ASSOCIATION a key to such UNIT.”Master Deed, Article XVIII, OCR page 14

“The owner or owners of each UNIT shall be liable for the expense of any maintenance, repair or replacement rendered necessary by his act, neglect or carelessness, or by that of any member of his family, or his or their guests, employees, agents or lessees, but only to the extent that such expense is not met by the proceeds of insurance carried by ASSOCIATION. Such liability shall include any increase in fire insurance rates occasioned by use, misuse, occupancy or abandonment of a UNIT or its appurtenances.”Master Deed, Article XXXI(b), OCR page 32

“In any proceeding arising because of an alleged default by the owner of any UNIT, the ASSOCIATION, if successful shall be entitled to recover the costs of the proceedings, and such reasonable attorney's fees as may be determined by the Court, but in no event shall the owner of any UNIT be entitled to such attorney's fees.”Master Deed, Article XXXI(c), OCR page 32

“The owner of each UNIT shall be liable and responsible for the maintenance, repair and replacement, as the case may be, of all air conditioning and heating equipment, stoves, refrigerators, fans or other appliances or equipment, including any fixtures and/or their connections required to provide water, light, power, telephone, sewage and sanitary service to his UNIT and which may now or hereafter be situated in his UNIT.”Master Deed, Article XXII, OCR page 15

“Wherever the maintenance, repair and replacement of any items for which the owner of a UNIT is obligated to maintain, repair or replace at his own expense is occasioned by any loss or damage which may be covered by an insurance policy maintained in force by ASSOCIATION the proceeds of the insurance received by ASSOCIATION, or the Insurance Trustee hereinafter designated, shall be used for the purpose of making such maintenance, repair or replacement, except that the owner of such UNIT shall be, in said instance, required to pay such portion of the costs of such maintenance, repair and replacement as shall, by reason of the applicability of any deductibility provision of such insurance, exceed the amount of the insurance proceeds applicable to such maintenance, repair or replacement.”Master Deed, Article XXII, OCR page 16

“Except for the provisions relating to the commercial unit as hereinabove set forth in Paragraph V, no owner of any unit may make alterations therein without first obtaining the written consent of the ASSOCIATION.”Master Deed, Article XX, OCR page 14

“Stays of 1-3 nights will be charged $20 per night (covers up to two dogs)”Ocean Park Resort Pet Policy, Page 1, item 2(a)

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.

Insurance is 22% of budget and is collected through a recurring board-levied 'Insurance Assessment' that nearly doubled from $155,000 to $306,000 in two years, total assessments rise 17% for 2024, the general reserve line is 2.4% with $0 transferred in 2024 and the $365,493 balance drawn down, the board can special-assess without a vote and a $255,000 loan balloon hits in 2026; offset by a clean audit, $612K cash, a $150,688 surplus through Sep 2024 and negligible delinquency.

2024 budget$1,395,830

Dues change+17.2% on the year

Reserves2% of budget

Reserve balance$365,493

Reserve studyOn file

Special assessments2022 $155,000 total Insurance Assessment levied to fund insurance renewals (audit Note 9); separate from regular assessments; 2023 $255,061 total (budgeted $201,000) Insurance Assessment for insurance renewals (audit Note 9); 2024 $306,000 budgeted ($229,500 collected through Sep 30, 2024) Insurance Assessment line 3004 in the 2024 budget; 2026 approximately $255,000 balloon due June 30, 2026 (not yet assessed) Parking facility note payable balloon (POTENTIAL, not levied); funding source unstated (refinance, reserves or assessment). The board may levy additional assessments in its sole discretion with no owner vote (Master Deed Art. XXVIII(c); By-Laws §7(b)).

InsuranceScheduled premiums in the USI analysis total $243,091 (property $159,723; flood $12,132; general liability James River $43,221.50 with $2M aggregate/$1M occurrence and $10,000 deductible; excess liability James River $24,413.92, $2M; D&O Continental Casualty $2,572, $1M, $1,000 deductible; pollution Greenwich $1,028.25, $1M). The 2024 budget insurance line is $306,000 (21.9% of budget; 17.4% if only the $243,091 scheduled premiums are counted), funded by a separate Insurance Assessment of the same amount. Insurance expense actual: $165,950 (2022), $229,027 (2023, vs $201,000 budget), $194,134 through Sep 2024 (vs $229,500 budget). Audit Note 10: an affiliate of the Developer provided insurance services costing the Association $186,009 (2023) and $124,772 (2022), i.e. about 81% and 75% of each year's insurance expense. Master Deed Art. XXV lets the Association cover an insured loss shortfall from the Reserve for Replacements and then levy an assessment, and still gives the original Lender approval rights over insurers and coverage amounts. The certificate letter footer reads 'Ocean Park Association, Inc. (flood only)' for the online certificate portal.

Wind deductibleProperty program (11 carriers incl. Starstone, United Specialty, Ironshore, Kemah Capital, Lloyds of London, Lancashire, Canopius, Everest, Axis, Lexington) 05/31/24-05/31/25, $159,723 premium, $13,123,400 per occurrence, Special Form replacement cost including wind, hail, wind-driven rain and earthquake. Deductibles as printed: '$50,000 All Perils except: $25,000 Named Storm $50,000 Earthquake'.

FloodAmerican Bankers Ins Co, 04/15/24-04/15/25, $12,132 premium, $13,123,000 building / $75,000 contents, $1,250 deductible.

DelinquencyVery low: homeowner receivables $8,373 at 12/31/23 and $1,468 at 9/30/24; no allowance for doubtful accounts; bad debt $25 (2023). Policy is to retain counsel and lien units 90+ days delinquent (audit Note 3). Master Deed: default on due date, board may accelerate the annual assessment on 10 days' notice, 18% interest, foreclosure and receiver after 20 days, owner pays collection costs and attorney's fees (Art. XXVIII(g)-(j)). Foreclosure purchasers take free of prior delinquencies, which are absorbed as common expense.

What the documents say (19)

“Regular monthly assessments to residential unit owners ranged from $818 to $1,351 in 2023 and from $779 to $1,287 in 2022. Regular monthly assessments to the commercial unit owner approximated $52,000 in 2023 and $50,000 in 2022.”Annual Meeting packet 2024 - Audited Financial Statements, Note 8, OCR page 35

“During 2023 and 2022, the Association levied an assessment to provide funds for the Association's insurance renewals. The amount of the insurance assessment totaled $255,061 and $155,000 for the years ended December 31, 2023 and 2022, respectively.”Annual Meeting packet 2024 - Audited Financial Statements, Note 9, OCR page 35

“3001 · Regular Assessments 1,077,655.43 3002 · Interest income 12,000.00 3003 · Late fees 175.00 3004 · Insurance Assessment 306,000.00 Total 3000 · Revenues 1,395,830.43”Profit & Loss Budget Overview 2024, OCR page 1

“4307 · Insurance 306,000.00”Profit & Loss Budget Overview 2024, OCR page 2

“4502 · General Reserves 33,569.85 4503 · Capital Projects 225,000.00 Total 4500 · Other Operating Expense 326,881.85 Total Expense 1,395,830.43”Profit & Loss Budget Overview 2024, OCR page 2

“3001 - Regular assessments 979,686.75 3002 - Interest income 500.00 3003 - Late fees 400.00 3004 - Insurance Assessment 201,000.00 Total 3000 - Revenues 1,181,586.75”Annual Meeting packet 2024 - 2023 Profit & Loss Budget Overview, OCR page 17

“4502 - General Reserves 0.00 25,177.41 (25,177.41)”Balance Sheet 9/30/2024 packet - P&L Budget vs. Actual Jan-Sep 2024, OCR page 4

“Accumulated net funds, which total $365,493 and $486,008 at December 31, 2023 and 2022, respectively, are presented on the accompanying balance sheets as a contract liability (assessments received in advance - reserve fund) and are allocated in a bank account and generally not available for operating purposes. However, these funds may be used, as needed, for any Association purpose at the discretion of the Board of Directors.”Annual Meeting packet 2024 - Audited Financial Statements, Note 7, OCR page 34

“During a prior year, the Association's Board of Directors engaged a contractor to perform a major repair and replacement study. The study, which is available to the membership upon request and not presented with the audit, addressed the Association's reserve program requirements related to the estimated remaining useful lives and replacement costs of the common property components.”Annual Meeting packet 2024 - Audited Financial Statements, Note 7, OCR page 34

“Management has omitted supplementary information on future major repairs and replacements that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements.”Annual Meeting packet 2024 - Independent Auditor's Report, Other Matter, OCR page 27

“A final balloon payment of approximately $255,000 is due by June 30, 2026.”Annual Meeting packet 2024 - Audited Financial Statements, Note 11, OCR page 35

“An affiliate of the Developer provided insurance services for the Association's insurance program. During the years ended December 31, 2023 and 2022, the amounts incurred by the Association for the insurance services provided by the affiliate of the Developer were $186,009 and $124,772, respectively.”Annual Meeting packet 2024 - Audited Financial Statements, Note 10, OCR page 35

“05/31/24 05/31/25 $159,723 $13,123,400 per occurrence per schedule. Deductibles : $50,000 All Perils except: $25,000 Named Storm $50,000 Earthquake Special Form, Replacement Cost coverage including the perils of Wind, Hail, Wind Driven Rain, and Earthquake.”USI Insurance Services coverage analysis, Page 1, Property

“Flood American Bankers Ins Co 6003609507 04/15/24 04/15/25 $12,132 $13,123,000 Building $ 75,000 Contents $ 1,250 Deductible”USI Insurance Services coverage analysis, Page 1, Flood

“The Association's policy is to retain legal counsel and place liens on the properties of homeowners whose assessments are ninety days or more delinquent.”Annual Meeting packet 2024 - Audited Financial Statements, Note 3, OCR page 33

“At December 31, 2023 and 2022, the Association's cash balances at one (1) financial institution exceeded the insured limit by approximately $257,000 and $291,000, respectively.”Annual Meeting packet 2024 - Audited Financial Statements, Note 4, OCR page 33

“Should the Board of Directors at any time determine, in the sole discretion of said Board of Directors, that the assessments levied are or may prove to be insufficient to pay the costs of operation and management of the condominium, or in the event of emergencies, said Board of Directors shall have the authority to levy such additional assessment or assessments as it shall deem necessary.”Master Deed, Article XXVIII(c), OCR page 25

“When in default, the delinquent assessment or delinquent installment thereof due to ASSOCIATION shall bear interest, at the rate of eighteen percent (18%) per annum (or such other interest rate established by ASSOCIATION) until such delinquent assessment or installment thereof, and all interest due thereon, have been paid to ASSOCIATION.”Master Deed, Article XXVIII(g), OCR page 26

“Total 1000 - Cash and Investments 611,742.61”Balance Sheet as of September 30, 2024, OCR 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.

The board is owner-elected and owners may rent freely, but the hotel Commercial Unit's 28.89% can block any Master Deed amendment alone, its owner controls the lobby/front-desk/linen/chute areas and may reshape or sell off 90 rooms without a vote (potentially adding 90 voters), its dues share (~64%) does not match the recorded vote share, and developer rights (conflict waiver, amendment veto) persist while a developer affiliate earned $186,009 (81%) of the 2023 insurance spend.

StructureOne association

Commercial unitYes, with its own deed rights

On-site operatorOceana Resorts is named in the hotel pet policy indemnification; a Vacasa representative attended the 2023 annual meeting. Association manager is Resort Association Management, Inc. (RAM), North Myrtle Beach.

BoardFive directors elected at the annual members' meeting by votes constituting a majority of statutory value; non-cumulative voting; majority of directors must be members; two-year terms (By-Laws §4). In April 2023 all five seats were up and five candidates were elected by acclamation. By-Laws set the annual meeting for the first Saturday of May; it was actually held April 28, 2023 and April 26, 2024. Directors and officers are unpaid (By-Laws §4(i), §6(f)). Owners of a majority of units can force a special members' meeting (By-Laws §3(b)). The Grantor's conditional right to designate/remove its own board representatives (Master Deed Art. XXXIII) is not backed by any designation clause in the attached Articles or By-Laws.

Developer rightsOcean Park, Inc. (Grantor) retains, for as long as it owns any unit: absolute right to lease, sell or license any unit on any terms; use of any unit it owns as a sales/rental office or model, assignable to others; and an express waiver of the duty to abstain from votes on management contracts or other matters in which it has a pecuniary interest (Art. XV, XXXIII). Art. XXXIII also lets it remove and replace any director it is 'entitled' to designate under the Articles/By-Laws, but the attached Articles and By-Laws grant no such entitlement beyond naming the first board, and all directors are elected by majority of statutory value (By-Laws §4(b)(i)). Any amendment touching the Grantor's or Lender's reserved rights needs their written consent (Art. XXX). Grantor-owned units were exempt from assessments until Sept 1, 1987 (Art. XXVIII). The 2023 audit still reports 'the Developer' as a related party whose affiliate was paid $186,009 for insurance services (about 81% of 2023 insurance expense).

Commercial-unit rightsThe Commercial Unit (90 hotel rooms, lobby, registration, office, cashier, linen, mech, ice, concession, laundry, games areas and all trash chutes) may be used for any lawful purpose regardless of plat labels; its owner may alter, add to, re-lay-out, subdivide or combine it and reapportion interests without any owner or Association vote (Art. III, V); may sell hotel rooms as individual condominium units (Art. V); writes and enforces rules for the lobby and other 'public areas' (Art. IV); and Art. V cannot be amended without the Grantor's or the then Commercial Unit owner's consent. Corridors not owned by the Commercial Unit are limited common elements that the Association may not restrict so as to block access to the Commercial Unit (Art. III). Commercial Unit holds 28.89% of common-element interest and votes (Exhibit B).

VotesOne vote per unit weighted by percentage interest in the common elements; 51% of ownership controls ordinary matters (Articles Art. IV(4)); quorum is a majority of percentage interest (By-Laws §2(b)); proxies allowed; written votes count for amendments. The 2023 minutes state quorum requires 51% of total votes in person or by proxy. Directors elected by majority of statutory value. The Commercial Unit's 28.89% is the largest single bloc under the recorded Exhibit B; because its dues share (~64%) does not match that figure, its current voting weight should be confirmed from any recorded amendments. Capital alterations and improvements to common elements need only board approval and are assessed per Exhibit B (Art. XXI).

Changing the deedMaster Deed: 75% of basic/statutory value per Exhibit B at a special meeting called on 10-30 days' notice (Art. XXX); unanimous owner and mortgagee consent to change percentage interests or assessment basis; Grantor/Lender/all-mortgagee consent for changes to their rights. By-Laws: two-thirds of total statutory value (By-Laws §9). Articles: two-thirds of total statutory value (Articles Art. XV). Termination: unanimous owners plus all lienholders (Art. XXIX). Master Deed controls over By-Laws and Articles; SC Horizontal Property Act controls over the Master Deed.

Disputes or lawsuitsAudit Note 5: party to routine collection and covenant-compliance actions, not material. Legal services budgeted $1,000 (2023 and 2024), $0 spent in 2023 and through Sep 2024. Hurricane Ian: $25,000 expense in 2022, $11,603 'Hurricane Ian Payable' still on the books at 9/30/24. 2023 annual meeting owner concerns included doors/escutcheon plates, pest control, pool showers, beach access, faded monument sign, pressure washing and domestic pump replacement, PTAC matters, pool deck cleaning, and 'Lack of common area cleaning and management as a whole'.

What the documents say (15)

“The first Board of Directors of the Association and succeeding Boards of Directors shall consist of five (5) persons. At least a majority of the Board of Directors shall be members of the Association, or shall be authorized representatives, officers, or employees of a corporate member of the Association.”Master Deed - By-Laws exhibit, By-Laws §4(a), OCR page 44

“All members of the Board of Directors shall be elected by votes constituting a majority of statutory value cast at the annual meeting of the members of the Association.”Master Deed - By-Laws exhibit, By-Laws §4(b)(i), OCR page 44

“Each vote (as the term is used herein and in the By-Laws) shall have a weight equal to the percentage interest in the Common Elements and Limited Common Elements as set forth in the Master Deed of the unit casting the vote. In all matters, except as otherwise provided under the Master Deed or these Articles of Incorporation, the majority (51%) of ownership in the Common Elements and Limited Common Elements shall be controlling.”Master Deed - Articles of Incorporation exhibit, Articles Art. IV(4), OCR page 56

“Commercial Unit 1,783,050 .2889”Master Deed, Exhibit B, OCR page 40

“*NOTE: The designation or name of any room or area shown on the Condominium Plat shall NOT constitute a restriction as to use, but any area may be used for any lawful purpose by the owner of the Commercial Unit.”Master Deed, Article III, OCR page 6

“The grantor or its designee, tenant or other subsequent owner of the commercial unit shall have the right, without the vote or consent of Ocean Park Owners Association, Inc., other unit owners or the representative or representatives of holders of mortgages on units to (i) make alterations, additions or improvements in, to or upon the Commercial unit whether structural or nonstructural, interior or exterior, ordinary or extraordinary; (ii) change the layout or number of rooms in the commercial unit from time to time; (iii) change the size of the commercial unit by subdividing the same into any desired number of rooms (or by combining any rooms resulting from such subdivision); and (iv) reapportion among the newly created units resulting from such subdivision (or combination) their appurtenant interest in the COMMON ELEMENTS; provided, however, that the percentage interest in the COMMON ELEMENTS of other units shall not be changed by reason thereof, unless the owners of such units shall consent thereto, and provided further, that the owner of the commercial unit shall comply with all laws, ordinances, and regulations of all governmental authorities having jurisdiction and shall agree to hold Ocean Park Owners Association, Inc., and all other unit owners harmless from any liability arising therefrom.”Master Deed, Article V, OCR pages 8-9

“The owner of the Hotel Units may sell any Hotel Unit to an individual owner, whereupon the Hotel Unit shall thereupon become an individual condominium unit and the owner of the said condominium unit shall have all of the rights, duties and liabilities of the other condominium owners in the Regime.”Master Deed, Article V, OCR page 9

“The provisions of this section may not be added to, amended or deleted without the prior written consent of the Grantor or the then owner of the commercial unit.”Master Deed, Article V, OCR page 9

“So long as the Grantor herein, Ocean Park, Inc., shall own any UNIT, the said Ocean Park, Inc. shall have the absolute right to lease or sell or to grant a license to use any such UNIT to any person, firm or corporation, upon any terms and conditions as it shall deem to be in its own best interest.”Master Deed, Article XXXIII, OCR page 33

“Any representative of Ocean Park, Inc. serving on the Board of Directors of ASSOCIATION shall not be required to disqualify himself upon any vote upon any management contract or other matter between Ocean Park, Inc. and ASSOCIATION where the said Ocean Park, Inc. may have pecuniary or any other interest.”Master Deed, Article XXXIII, OCR page 33

“Furthermore, no amendment of this MASTER DEED shall be adopted which would operate to affect the validity or priority of any mortgage held by a mortgagee or which would alter, amend or modify in any manner whatsoever the rights, powers and privileges granted and reserved herein in favor of Ocean Park, Inc. and mortgagees without the written consent of all mortgagees and Ocean Park, Inc., as the case may be.”Master Deed, Article XXX, OCR page 31

“In order for such amendment or amendments to become effective, the same must be approved by an affirmative vote of the members owning not less than two-thirds of the total statutory value of the property in the condominium.”Master Deed - By-Laws exhibit, By-Laws §9(c), OCR page 51

“In order to establish quorum, 51% of the total votes of the association must participate in person or by proxy.”Annual Meeting packet 2024 - April 28, 2023 Annual Meeting Minutes, OCR page 7

“Lack of common area cleaning and management as a whole”Annual Meeting packet 2024 - April 28, 2023 Annual Meeting Minutes, Old/New Business, OCR page 8

“The Association is a party to various legal actions normally associated with homeowner associations, such as the collection of delinquent assessments and covenant compliance matters, the aggregate effect of which, in management's opinion, would not be material to the future financial condition of the Association.”Annual Meeting packet 2024 - Audited Financial Statements, Note 5, OCR page 33

03 Pros and cons

For the owner who runs it themselves.

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

Working for you

The Master Deed itself lets owners house 'tenants, guests and invitees' as 'resort or residential accommodations' with no minimum stay, no rental cap, no registration, no advertising rule and no requirement to use the hotel's rental program; only timesharing is barred, though the board may adopt rules on unit use and none are in the set (Master Deed, Art. XV p.13, Art. VII p.10, Art. XIV pp.12-13)
Condo owners, occupants and their guests get the hotel's 'public areas' (concessions etc.) on the same basis as hotel guests, plus an easement through the lobby to the elevators, and a perpetual easement over all common elements; the pools are not listed in the Commercial Unit so they fall within the common elements (Master Deed, Art. III pp.6-7, Art. IV p.8, Art. IX p.11)
Governance is owner-driven in practice: a five-seat board elected by the members at the annual meeting for two-year terms, all five seats filled by acclamation at the 2023 meeting, and directors and officers may not be paid (Master Deed By-Laws §4(a), §4(b)(iii), §4(i), §6(f) pp.44-49; 2023 Minutes p.7-8)
Clean audited financials: unqualified opinion for 2023 and 2022, a 2023 surplus of $130,975 that rebuilt the fund balance to $192,302 after a $97,151 deficit in 2022, a further $150,688 surplus through September 2024, and cash of $611,743 at 9/30/24 (Annual Meeting packet, Auditor's Report p.26 and Statement p.30; Balance Sheet 9/30/24 p.1 and p.4)
Owners pay: homeowner receivables were $8,373 at year-end 2023 and $1,468 at 9/30/24, no bad-debt allowance needed, bad debt expense $25; liens go on at 90 days (Annual Meeting packet, Audit Notes 3 and 8 p.33 and p.35; Balance Sheet 9/30/24 p.1)
The Association budget carries building-wide cable TV ($33,000), phone/internet ($44,196), water & sewer, fuel, trash, security, pool attendant, hallway cleaning, pest control and a bed-bug program; whether cable, internet, water or electricity are delivered inside the 26 condo units is unstated, and the By-Laws make the Association pay only utilities 'not billed to the owners of the separate units' (2024 Budget Overview p.1-2; By-Laws §4(j)(x) p.47)
A contractor-prepared major repair and replacement (reserve) study exists from an unstated prior year and is available to members on request (Annual Meeting packet, Audit Note 7 p.34)
Property deductibles are fixed dollar amounts ($25,000 named storm, $50,000 other perils) rather than a percentage of the $13.1M insured value, and flood is separately insured to $13.1M with a $1,250 deductible (USI coverage analysis p.1)
The parking loan is cheap (about 3.9%, $2,581/month) and the parking facility is carried as a $472,500 Association asset, although it and 'other assets' are pledged as collateral for the note until the 2026 balloon is paid (Annual Meeting packet, Audit Note 11 p.35; Balance Sheet 9/30/24 p.1)
The By-Laws require an annual CPA audit furnished to every member by April 1, and the Master Deed requires each annual budget to include both a replacement reserve and a general operating reserve; the audit is in fact performed yearly (Master Deed By-Laws §7(e) p.50; Master Deed Art. XXVIII(d)-(e) p.25; Annual Meeting packet Auditor's Report p.26)
Owners of a majority of units can force a special members' meeting, and owners of a majority of units can propose Master Deed amendments themselves (Master Deed By-Laws §3(b) p.43; Master Deed Art. XXX p.30)
2024 is running well ahead of budget: a $150,688 surplus through September with insurance $35,366 and utilities $21,553 under budget, and prepaid assessments of $72,396 on hand (Balance Sheet 9/30/24 p.1, p.3-4)

Watch-outs

Insurance is 21.9% of the 2024 budget ($306,000) and is collected as a separate 'Insurance Assessment' that has climbed from $155,000 (2022) to $255,061 (2023) to $306,000 budgeted for 2024, nearly doubling in two years (2024 Budget Overview p.1-2; Annual Meeting packet Audit Note 9 p.35)
Total budgeted assessments (regular plus insurance) rise 17.2% for 2024, with regular assessments up 10.0% and the insurance assessment up 52% versus the 2023 budget; residential monthly dues already rose 5% from 2022 to 2023 (Annual Meeting packet 2023 Budget p.17 and Audit Note 8 p.35; 2024 Budget Overview p.1)
Reserve funding is thin relative to the capital spend: the 'General Reserves' line is only $33,570 (2.4% of budget) although a further $225,000 (16.1%) is budgeted as pay-as-you-go 'Capital Projects'; $0 of the $25,177 budgeted reserve transfer had been made through September 30, 2024, and the accumulated reserve fell from $486,008 to $365,493 during 2023 (about 26% of one year's budget) as $224,468 of capital projects were spent; the auditor flagged that management omitted the required future-major-repairs disclosure (2024 Budget Overview p.2; Balance Sheet 9/30/24 packet p.1 and p.4; Annual Meeting packet Auditor's Report p.27, Statement p.30 and Note 7 p.34)
The board may levy additional or special assessments 'in the sole discretion of said Board of Directors' whenever it finds the budget insufficient or in an emergency, with no owner vote, and the By-Laws repeat that power; the recurring 'Insurance Assessment' already works this way (Master Deed, Art. XXVIII(c) p.25; By-Laws §7(b) p.50)
A parking-facility loan of about $290,661 (9/30/24) has a roughly $255,000 balloon due June 30, 2026 with no stated funding plan, which could mean a refinance, a reserve draw or a special assessment (Annual Meeting packet, Audit Note 11 p.35; Balance Sheet 9/30/24 p.1)
The hotel's Commercial Unit holds 28.89% of the votes, more than the 25% needed to block any Master Deed amendment on its own, and its owner may alter, subdivide or re-lay-out the Commercial Unit, sell hotel rooms off as condos, and write the rules for the lobby and public areas without any owner vote (Master Deed, Art. III p.6, Art. IV p.8, Art. V p.8-9, Art. XXX p.31, Exhibit B p.40)
If the hotel owner sells its 90 rooms as individual condominiums (Art. V allows this without any vote), up to 90 new voting owners would join the 26 existing condo owners, diluting them in every election and amendment vote (Master Deed, Art. V p.9)
The front desk, registration, cashier, office, linen rooms and even the trash chutes on floors 2-12 are inside the hotel's Commercial Unit, so an off-program owner has no documented right to front-desk check-in, key handling, housekeeping or linen service; all of that is unstated (Master Deed, Art. III p.6 and Art. IV p.8)
Developer (Ocean Park, Inc.) rights survive in the deed: sales/rental office use, an express waiver of conflict-of-interest abstention on management contracts, a conditional board designation/removal right, and a veto over amendments to its rights; the 2023 audit shows an affiliate of the Developer was paid $186,009 for the Association's insurance services, about 81% of that year's insurance expense (Master Deed, Art. XV p.13, Art. XXX p.31, Art. XXXIII p.33; Annual Meeting packet Audit Note 10 p.35 and Statement p.30)
The audit's commercial-unit assessment of about $52,000 per month (about $624,000 a year, roughly 64% of the $979,637 2023 regular assessments) is far above the Commercial Unit's 28.89% Exhibit B share, while the residential range of $818-$1,351 is exactly proportional to Exhibit B among the 26 condos and sums to only about $352,000 a year; a strict Exhibit B split of the same total would put residential dues at roughly $1,616-$2,670 a month, so the allocation in force differs from the recorded 1985 Master Deed, and the Deed says changing the assessment basis needs unanimous owner consent; request all recorded amendments before relying on the Exhibit B percentages for either dues or votes (Annual Meeting packet Audit Note 8 p.35 and Statement p.29; Master Deed Art. XXVIII(a) p.24, Art. XXX p.30, Exhibit B p.40)
For damage inside a unit covered by the master policy, the owner pays the portion within the deductible, which is $50,000 for most perils and $25,000 for a named storm; owners are also liable for damage caused by their guests or lessees and for any resulting insurance-rate increase (Master Deed, Art. XXII p.16 and Art. XXXI(b) p.32; USI coverage analysis p.1)
In any enforcement action the Association recovers its attorney's fees if it wins but 'in no event shall the owner of any UNIT be entitled to such attorney's fees'; delinquent dues accrue 18% interest with acceleration and foreclosure after 20 days (Master Deed, Art. XXXI(c) p.32 and Art. XXVIII(g) p.26)
The only pet document is a hotel guest policy with nightly fees, a 40-lb limit and five banned breeds that indemnifies 'the Hotel and/or Oceana Resorts'; whether it applies to condo owners is unstated and the board said in 2023 it would take up a pet policy, so the rules could change (Pet Policy p.1; 2023 Minutes p.8)
No current Rules & Regulations, fine schedule, rental policy or guest-registration procedure is in the set, and the 2023 annual meeting recorded owner complaints about 'Lack of common area cleaning and management as a whole', doors, pest control, PTAC units, pumps and pressure washing in this 1985 building (2023 Minutes p.8)
The Association may require every owner to deposit a unit key under its control, and must be allowed in for common-element maintenance at reasonable times (Master Deed, Art. XVIII p.14 and Art. XIX p.14)
2023 general repairs ran $37,283 over budget and pool supplies $12,646 over; 2024 general repairs were $13,945 over budget through September, suggesting ongoing wear in the building (Annual Meeting packet 2023 P&L p.12; Balance Sheet 9/30/24 packet p.3)
Association cash at one bank exceeded the FDIC limit by about $257,000 at year-end 2023 (Annual Meeting packet, Audit Note 4 p.33)
The Association ran a $97,151 deficit in 2022 (Hurricane Ian costs of $25,000 plus insurance), which is why the fund balance had fallen to $61,327 before the 2023 recovery; an $11,603 'Hurricane Ian Payable' remains on the 9/30/24 balance sheet (Annual Meeting packet, Statement p.30; Balance Sheet 9/30/24 p.1)

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, 2024

Unit type	Per month	Per year
Residential unit, smallest (1.98% interest) - 2023 regular assessment, excludes separate insurance assessment ($818/0.0198 and $1,351/0.0327 both imply the same ~$41,300/mo residential base, so residential dues track Exhibit B)	$818	$9,816
Residential unit, largest (3.27% interest) - 2023 regular assessment, excludes separate insurance assessment	$1,351	$16,212
Residential unit, smallest - 2022 regular assessment	$779	$9,348
Residential unit, largest - 2022 regular assessment	$1,287	$15,444
Commercial Unit (90 hotel rooms) - 2023 regular assessment, approximate per Audit Note 8; equals ~64% of the $979,637 regular assessments, not the 28.89% Exhibit B share	$52,000	$624,000

What the dues cover

Master property, flood, general liability, excess, D&O and pollution insurance (funded via the Insurance Assessment)Cable TV (bulk, $33,000)Phone & internet - Ipacket (bulk, $41,352) plus HTC internet/phone ($2,844)Water and sewer ($57,000)Fuel ($47,000)Trash removal ($30,000)Electricity ($40,000) - whether in-unit electric is included is unstated; By-Laws say the Association pays utilities 'not billed to the owners of the separate units'Pest control ($4,608) and building-wide bed bug program ($11,016)Security services ($65,312 + $3,000 additional)Pool attendant, pool maintenance, chemicals and supplies (~$102,000 combined)Hallway & corridor care/cleaning ($127,125)Elevator contract and uncontracted repairs, fire alarm, generator lease, exercise room leaseProperty management (RAM) fees, inspections, landscaping, parking deck sweeping and lot cleaning

Where the budget goes

Insurance (4307)$306,000 · 22%

Capital Projects (4503)$225,000 · 16%

Hallways & Corridor Care (4102)$127,125 · 9%

General Repairs and Maintenance (4204)$80,000 · 6%

Security Services (4501)$65,312 · 5%

Water and Sewer (4402)$57,000 · 4%

Swimming Pool Maintenance (4103)$47,653 · 3%

Fuel (4403)$47,000 · 3%

The figures, in the documents' words (19)

“Regular monthly assessments to residential unit owners ranged from $818 to $1,351 in 2023 and from $779 to $1,287 in 2022. Regular monthly assessments to the commercial unit owner approximated $52,000 in 2023 and $50,000 in 2022.”Annual Meeting packet 2024 - Audited Financial Statements, Note 8, OCR page 35

“During 2023 and 2022, the Association levied an assessment to provide funds for the Association's insurance renewals. The amount of the insurance assessment totaled $255,061 and $155,000 for the years ended December 31, 2023 and 2022, respectively.”Annual Meeting packet 2024 - Audited Financial Statements, Note 9, OCR page 35

“3001 · Regular Assessments 1,077,655.43 3002 · Interest income 12,000.00 3003 · Late fees 175.00 3004 · Insurance Assessment 306,000.00 Total 3000 · Revenues 1,395,830.43”Profit & Loss Budget Overview 2024, OCR page 1

“4307 · Insurance 306,000.00”Profit & Loss Budget Overview 2024, OCR page 2

“4502 · General Reserves 33,569.85 4503 · Capital Projects 225,000.00 Total 4500 · Other Operating Expense 326,881.85 Total Expense 1,395,830.43”Profit & Loss Budget Overview 2024, OCR page 2

“3001 - Regular assessments 979,686.75 3002 - Interest income 500.00 3003 - Late fees 400.00 3004 - Insurance Assessment 201,000.00 Total 3000 - Revenues 1,181,586.75”Annual Meeting packet 2024 - 2023 Profit & Loss Budget Overview, OCR page 17

“4502 - General Reserves 0.00 25,177.41 (25,177.41)”Balance Sheet 9/30/2024 packet - P&L Budget vs. Actual Jan-Sep 2024, OCR page 4

“Accumulated net funds, which total $365,493 and $486,008 at December 31, 2023 and 2022, respectively, are presented on the accompanying balance sheets as a contract liability (assessments received in advance - reserve fund) and are allocated in a bank account and generally not available for operating purposes. However, these funds may be used, as needed, for any Association purpose at the discretion of the Board of Directors.”Annual Meeting packet 2024 - Audited Financial Statements, Note 7, OCR page 34

“During a prior year, the Association's Board of Directors engaged a contractor to perform a major repair and replacement study. The study, which is available to the membership upon request and not presented with the audit, addressed the Association's reserve program requirements related to the estimated remaining useful lives and replacement costs of the common property components.”Annual Meeting packet 2024 - Audited Financial Statements, Note 7, OCR page 34

“Management has omitted supplementary information on future major repairs and replacements that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements.”Annual Meeting packet 2024 - Independent Auditor's Report, Other Matter, OCR page 27

“A final balloon payment of approximately $255,000 is due by June 30, 2026.”Annual Meeting packet 2024 - Audited Financial Statements, Note 11, OCR page 35

“An affiliate of the Developer provided insurance services for the Association's insurance program. During the years ended December 31, 2023 and 2022, the amounts incurred by the Association for the insurance services provided by the affiliate of the Developer were $186,009 and $124,772, respectively.”Annual Meeting packet 2024 - Audited Financial Statements, Note 10, OCR page 35

“05/31/24 05/31/25 $159,723 $13,123,400 per occurrence per schedule. Deductibles : $50,000 All Perils except: $25,000 Named Storm $50,000 Earthquake Special Form, Replacement Cost coverage including the perils of Wind, Hail, Wind Driven Rain, and Earthquake.”USI Insurance Services coverage analysis, Page 1, Property

“Flood American Bankers Ins Co 6003609507 04/15/24 04/15/25 $12,132 $13,123,000 Building $ 75,000 Contents $ 1,250 Deductible”USI Insurance Services coverage analysis, Page 1, Flood

“The Association's policy is to retain legal counsel and place liens on the properties of homeowners whose assessments are ninety days or more delinquent.”Annual Meeting packet 2024 - Audited Financial Statements, Note 3, OCR page 33

“At December 31, 2023 and 2022, the Association's cash balances at one (1) financial institution exceeded the insured limit by approximately $257,000 and $291,000, respectively.”Annual Meeting packet 2024 - Audited Financial Statements, Note 4, OCR page 33

“Should the Board of Directors at any time determine, in the sole discretion of said Board of Directors, that the assessments levied are or may prove to be insufficient to pay the costs of operation and management of the condominium, or in the event of emergencies, said Board of Directors shall have the authority to levy such additional assessment or assessments as it shall deem necessary.”Master Deed, Article XXVIII(c), OCR page 25

“When in default, the delinquent assessment or delinquent installment thereof due to ASSOCIATION shall bear interest, at the rate of eighteen percent (18%) per annum (or such other interest rate established by ASSOCIATION) until such delinquent assessment or installment thereof, and all interest due thereon, have been paid to ASSOCIATION.”Master Deed, Article XXVIII(g), OCR page 26

“Total 1000 - Cash and Investments 611,742.61”Balance Sheet as of September 30, 2024, OCR page 1

Ocean Park.

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, 2024

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.

Ocean Park.

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, 2024

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.