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

[senorSamba Junior Member Find all posts View Profile Close senorSamba]

From what I understand, the contract states that everything is governed by Irish law.

[senorSamba Junior Member Find all posts View Profile Close senorSamba]

Also, they are deeded (Irish deeds) weeks for specific units.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Also, they are deeded (Irish deeds) weeks for specific units.

That would put you in a better position than most UK timeshares, where title is held by a trustee who is supposed to represent the members but often is in the pocket of the developer. Are the deeds in perpetuity?

I strongly suggest you get advice from the TCA on your legal position. If your legal ownership is deeded in perpetuity, the most management could do is walk away from management, at which point the members could organize new management. But you need expert advice. TCA has some timeshare savvy lawyers availible if things need to go that route.

The other thing that is critically important is resort governance. There should be annual meetings and election of a board or committee that oversees management. Has that been formed? Are its members lapdogs or management or are they independent? What is the process for removal if necessary? Have they provided members with financial accounts? Members likely have rights to see various documents that someone should be looking at right now. You need to determine those rights and then some member needs to go exercie them.

If management sees that members are organizing and will push back, they may back down.

[senorSamba Junior Member Find all posts View Profile Close senorSamba]

I'll check out that website. I believe the title is held by me. The deeds are real deeds that can be bought, sold, inherited, etc.

There have been no annual meetings that I am aware of. I'm not sure re a board. I assume management and the board, if there is one, is the same. All correspondence has come from the Galway Bay Management Co.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

I hate to even suggest this, but perhaps a lawyer could be retained for a class action suit should it be a reasonable alternative based on what can be ascertained.

[MaryH Senior Member Find all posts View Profile Close 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 Super Moderator Find all posts View Profile Close 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 Junior Member Find all posts View Profile Close 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 Silver Contributor Find all posts View Profile Close joycapecod]

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

Joy

[senorSamba Junior Member Find all posts View Profile Close 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 Silver Contributor and supermoderator Find all posts View Profile Close 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 Super Moderator Find all posts View Profile Close 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 Junior Member Find all posts View Profile Close 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 Junior Member Find all posts View Profile Close 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 Junior Member Find all posts View Profile Close 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