Tipping point?

[ebram Senior Member Find all posts View Profile Close ebram]

I was wondering if there is a point where the HOA owns a certain percentage of if the is a certain of delinquent owners wher the TS is doomed to insolvency. For instance, I own a blue week in Oceancliff in Newport, RI. The HOA owns about 20% of the units. Last year the HOA instituted a $2200.00 Special Assesment. So far(from I have been able to acertain from an opaque managment) about 70% of the owners have paid the SA. That means that only about 56% of the owners are current(.7 X 80%) Since this is a seasonal resort the deelinquent and HOA owned units do not sell. This will probably cause the MFs to raise causing more defections. At what point does anyone have a studied idea when a irreversible death spiral will occur. Is there anyway to prevent this. I believe that the property as awhole is worth more that the accumulated values of the TSs, so that those that hang in and can use their TSs will probably get something from the liquidation.
Any thoughts or similar experiences.
PS The work done for the SA was not worth the SA.

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

If a little over half the owners are paying all the bills, I would say the resort is near the tipping point. The spiraling costs are well underway and without a dramatic change, annual fees should nearly double in about 2-3 years and the HOA will have more non-contributing earnings. Maybe a winter shutdown could help a bit, but the non-contibuting units must decrease significantly or the resort may be doomed.