Galway Bay Cottages IRE - Help with sudden increase in maintenance fee

[MaryH]

I guess the question to ask if the increase is due to some needed repairs or high default rate or something else.
Also good to ask what % of owners are current and how many units/weeks are non-performing.

Also is the deed freehold or leasehouse?

[Carolinian]

The governance issues also are critical. There should be some type of board or committee running an HOA or equivalent. How is it composed? There should also be an annual meeting, which it seems the members know nothing about. It is important to find out what the rules are and then determine if they have been followed. The owners may be able to take control of the resort and then determine their own management. They are also almost certainly entitled to some type of financial accounting from the management. They need to get that in as much detail as possible to find out what is going on.

[senorSamba]

Recd a message back from UK group. They can't help as they do not have jurisdiction in southern Ireland.

I'll check some of my paperwork re the structure of the timeshare and pose some of these questions to the management company.

JOY, If you are out there I sent u a PM. I'd like to get in touch with you as a fellow owner.

Thanks,

SS

[joycapecod]

SS, you have mail. I was at work and just got home.

Joy

[senorSamba]

It seems I own one share in the Galway Bay Cottages Owners Association. (Actually two, one for each of my two weeks)

If permissible under forum rules I'd like to post the budget that was sent , the letter that was sent, my membership certificate and the land registry (which seems to be our contract).

Thanks for all your help!

SS

[GrayFal]

It seems I own one share in the Galway Bay Cottages Owners Association. (Actually two, one for each of my two weeks)

If permissible under forum rules I'd like to post the budget that was sent , the letter that was sent, my membership certificate and the land registry (which seems to be our contract).

Thanks for all your help!

SS

no problem.....

please MASK/DELETE any personal info you do not want seen - I have added the resort name to the title of your thread so search engines will pick it up.

[Carolinian]

So there clearly is an owners association. Do you have a constitution or other governing instruments of that association, list of officers, and minutes of meetings? If not I would ask for those from management. While the budget is important, accounting of past receipts and expenditures is as well, and I would ask for that accounting.

[senorSamba]

September 24, 2012

Dear Galway Bay Cottages Owner:

Enclosed you will find your maintenance fee bill for the 2013 calendar year, a Letter to Owners, together with additional information pertaining to the enclosed budget/forecast for 2013 and 5 year Capital Improvement Plan

Fees are due and payable by November 1, 2012.

For both US Based and Non US Based Owners, please make check payable to GBC Management Company, LLC and remit payments to:

<REMOVE ADDRESS>

If you have any questions please email <REMOVE EMAIL>, or call <REMOVE PHONE NUMBER>.

Thank you


GBC Management Company, LLC

[senorSamba]

GBC MANAGEMENT COMPANY LLC
<SNIP USA ADDRESS>

September 24, 2012

Dear Galway Bay Cottage Owners

Enclosed are your 2013 maintenance fee bill and a budget/forecast for the upcoming year, 2013 and 5 year capital improvement plan. You will notice the maintenance fee has increased significantly over past years fees. There are a number of reasons for this increase; rising operating costs, capital improvements, and increases to government taxes, licenses, and fees including Value Added Tax (VAT) which is applied to all maintenance fee collections. In addition, most fees are collected in US Dollars and lose value when converted to Euros.

Given the age and condition of the cottages, we have received numerous complaints from current owners as well as RCI members who are using the cottages on exchange. As the complex ages upgrades, repairs, and improvements must be done in order to preserve the cottages as well as improve our ranking with RCI, allowing you to maintain trading power for your weeks.

Since late 2010 several improvements and upgrades have taken place. These include structural and functional upgrades, such as roof repair work, new TVs and DVD players, new washing machine, and electric showers in several cottages. We will continue to monitor all expenses and make adjustments to future maintenance fees as necessary. The plan is to continue to upgrade the cottages and to maintain the property to ensure all owners and RCI members may continue to enjoy Ireland.

Over the past several years the owners at Galway Bay Cottages have enjoyed quite possibly the lowest Maintenance Fee costs in the industry. Unfortunately, we are now facing a series of events that have made operating Galway Bay Cottages at the current Maintenance Fee amount impossible. The event mentioned earlier and a significant amount of delinquency on behalf of many Galway Bay Cottages owners, have resulted in a dire situation. Efforts have been made to collect these overdue amounts, but many legal, financial, and logistical obstacles have led to limited success.

Given the current situation the resort management company will require the budget to be fully funded. In the event that the budget is not fully funded by the due date a second bill will be generated in order to meet the operating cost. If the budget is still not fully funded at that point all Maintenance Fees collected will be returned and resort operations will be suspended as of January 1, 2013 while all options are considered.

As the world economy has been on the decline, and government regulations in Ireland have increased, we find ourselves having to make some hard decisions. We ask for your continued understanding, cooperation, and flexibility as we take on this challenge.

We will continue to assess the needs of the resort and to keep you informed.

Sincerely,

GBC Management Company, LLC

[senorSamba]

2013 BUDGET
Euros


Operating Expenses:

1. Advertising (rentals/website) 5,000
2. Trash 4,000
3. Exterminator 3,000
4. Laundry 4,000
5. Electric/Heat 3,500
6. Office Expense 3,000
7. Cleaning 14,000
8. Repairs/Maintenance (general) 20,000
9. Insurance 11,000
10. Auto Expenses 1,000
Total 68,500 euros

Management Expenses:
1. Irish Financing/Accounting/Legal Fees 33,000
2. On-site Management Wages 19,000
3. Section 43 Bond 2,000
4. Resort Management Contract 45,000
Total 99,000 euros

Government Taxes:
1. Employment taxes 13,000
2. VAT Taxes 11,000
3. TV License 1,300
4. NPPR (Household non-resident Tax) 9,000
Total 35,000 euros

Major Maintenance/Repair and Loan:
1. Sewer/Roofing/loan 90,600 Total 90,600 euros

Resort Forecasted Budget Total 292,400 euros



Maintenance Fee Per Week: 717 Euros
Maintenance Fee Per Week: $919.00




Capital Improvements for Five years

Description Type Priority Estimated Cost Per Year portion (5) years
Carpets Cosmetic Low 7,500 Euros 1,500 Euros
Heaters Functional Medium 7,500 Euros 1,500 Euros
Roofs Structural High 120,000 Euros 24,000 Euros
Shower upgrades (install electric) Cosmetic/Functional Medium 8,000 Euros 16,000 Euros
Sewer Connection Regulatory High 60,000 Euros 12,000 Euros
Furniture & Fixtures Cosmetic/Functional Low 25,000 Euros 5,000 Euros