$5,893.32 special assessment for Diamond's Point at Poipu

[JLB]

https://www.diamondresorts.com/hoa/2...andInserts.pdf


The numbers on these things just keep getting more and more ridiculous.. This one doesn't even seem possible..

I believe there are 219 units at this resort. If they leave two weeks unsold for maintenance that generates 50 ownerships per year per unit, or a total of 10,950 intervals. The special assessment looks like $5,893.32 per interval.


According to my calculator- that ends up being $64,531,854..

Actually, it says m/l that in the notice:

Water Intrusion Assessment Cost

The total amount of the water intrusion assessment, which includes all construction costs, legal and consulting fees, permits, Hawaii general excise tax and other items is approximately $65.8 million, or $5,893.32 per interval.
Project Timeline
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Even with the penalties ($20, plus 5%, plus 12% interest) how many of the 11,166 (doing the math), or so, do you think will not pay?

I wouldn't.

&, what is your guess as to the actual amount per owner will wind up being?

If a third don't pay, it will be $8839!!!!

[tonyg]

I think I forsee the involvement of lawyers and a lot of units on Ebay.

[JLB]

A smarter move would be to pick up an LBR for a buck:

Lawai Beach Resort Timeshare Kauai Hawaii - No Reserve
Free Closing! Annual 1bed,1bth 1-52 Float Alii Building

Item condition: --

Time left: 17h 9m 12s (Oct 07, 201110:00:26 PDT)

Bid history: 1 bid[Refresh bidhistory]


Current bid: US $1.00

[StressCadet]

Wow. This thread makes my stomach feel sick and I don't even own there.

[T. R. Oglodyte]

A smarter move would be to pick up an LBR for a buck:

Lawai Beach Resort Timeshare Kauai Hawaii - No Reserve
Free Closing! Annual 1bed,1bth 1-52 Float Alii Building

Item condition: --

Time left: 17h 9m 12s (Oct 07, 201110:00:26 PDT)

Bid history: 1 bid[Refresh bidhistory]


Current bid: US $1.00

Of course, that's assuming that LBR doesn't face a similar assessment in the future. Personally, I think that LBR, being similar construction, is going to face the same issue at some point. Anyone buying in at LBR should consider the possibility that the difference here might be that Point at Poipu is on top of the situation and LBR isn't. And I think there's ample reason to suspect that LBR may be underreserving it's capital accounts.

LBR was actually a resort I was specifically thinking of when I posted a reply OY to a thread started by LizFox about resorts with special assessments. It's really not that useful to know which resorts have imposed SAs. It's more important to know which resorts are unknowingly underfunding reserve accounts.

*****

A bit OT, but that is one of the reasons why I am a fan of VRI as a resort manager. My impression is that VRI knows what it takes to fund a reserve account, and is pretty upfront with HOA Boards about comopleting a good, trustworthy reserve account analysis. I've seen some complaints logged about annual fees increasing after VRI receives the management contract at a resort, but I've always felt there was ample reason to believe that's a case of trying to shoot the messenger.

[SallyHoover]

Hi rondiware, and welcome to TS4M's

Wow, I think that's outrageous! Did the owners vote on this?
Anyway, I feel your pain, and hope that you guys have some recourse.

Even if they had a vote, regular owners don't have much of a voice when a developer votes as a block for all the club and trust based members. The club and trust based members are also somewhat shielded because their portions are spread out among more members in multiple properties. I wonder if Diamond is using their $10 million to "spare" the club members a little more or if it is spread equally among all 52 weeks per unit both deeded and trust members?

[Ryne08]

How many owners will turned back their timeshare to the developer? Who will be the winner and the loser at this resort. Suppose a third of the owners say enough is enough and turn back their timeshare back to Diamond.

[JLB]

Concerning Southshore, it would be wise to know more about the construction there, and the problem, if one was thinking about buying.

If I have it correct, Poipu was built prior to Iniki, and is actually on the baech side of the road, although it is lava rocks right there.

LBR is across the road in a different area, and was the first project built after Iniki, the materials already being there when Iniki hit. Maybe that is just the two newer buildings, the DCB being older (???).

So, what is the water evasion problem, and were construction technologies changed between Poipu Point and LBR?

Or, just rent and leave the headaches to the owners.

[JLB]

I thought it might be interesting to show this view of the resort, as taken from the beach of the nearby Hyatt.

As you can see, Poipu Point is elevated, protected from the ocean by a bed of lava rocks, and set back a bit.

Has it occurred to anyone that even after spending $65 million, that it may still be just too close to the ocean?

For those who have parked their car for a week at an oceanfront resort, you know what just the surf spray can do. Imagine just that, every day, all day, year after year.

Panoramio - Photo of Embassy Vacation Resort at Poipu Point

We stayed in the furthest building on the left, I believe, second floor, end unit on this end. It has an easterly, sunrise orientation, looking out over Poipu Bay, and I saw the first whale of the season a 6:00 AM the Tuesday we were there. I was sitting on our Lanai, sipping Kona coffee, watching the sunrise.

December 14, 1999.

[T. R. Oglodyte]

Concerning Southshore, it would be wise to know more about the construction there, and the problem, if one was thinking about buying.

If I have it correct, Poipu was built prior to Iniki, and is actually on the baech side of the road, although it is lava rocks right there.

LBR is across the road in a different area, and was the first project built after Iniki, the materials already being there when Iniki hit. Maybe that is just the two newer buildings, the DCB being older (???).

So, what is the water evasion problem, and were construction technologies changed between Poipu Point and LBR?

Or, just rent and leave the headaches to the owners.

Point at Poipu was nearing completion and had just started sales (as a whole ownership project) when Iniki hit. The resort was severely damaged by Iniki, and the developer couldn't rescue it. Holland America and Signature Resorts (Signature Resorts became Marc Resorts, and Marc was bought by Sunterra) rescued the project, getting approval from the Kauai County Council, to rezone the property to resort from residential so they could sell it as timeshare. The County was anxious to get the project going and eliminate the eyesore. so they agreed to the rezone.

IIRC - the newer LBR buldings are woodframe construction. If so I would expect the same issue to be present at LBR. Though if the buildings were constructed after Iniki they may have been spared damage.

****

At the resort HOA webage they have posted some photos of the damage. There's some very significant damage underneath the exterior cladding - metal structural ties that are very heavily corroded. It's pretty ugly.