HOME OWNER'S ASSOCIATION (HOA)
The villas are being sold as part of an established Home Owners Association (HOA). Each villa is to receive a 199 year lease to their villa, and shares of the HOA. The shares of the HOA are determined by the number of bedrooms your villa has in it. Each villa owner is responsible for the interior of the their villa, while the HOA is responsible for the land and exterior of the buildings, including but not limited to, roofs, painting, doors and windows, and landscaping. Initially the developer of the project will pay 100% of the operating costs of the HOA, which will include items such as landscaping, exterior maintenance, insurance, taxes, and security. After a majority of the villas are sold, the costs of the operations will shift to the members of the HOA, while the developers will still be paying their unsold villas share of the fees. Once 80% of the villas are sold and closed upon, the developers will relinquish ownership of the property to the HOA itself, where upon the Board of Directors of the HOA will assume full responsibility of the property and will be elected by the villa owners.
HOA fees: Each villa owner will be responsible for three separate fees to the HOA. The first is a fee to proportionally pay the operating costs of the HOA. The second fee will be set aside by the HOA as a source of funds for future major repairs as expected in the future such as repainting the buildings, roof replacement (likely 20-30 years down the line), etc.. The last fee is a small one for the HOA to have as a fund for small future improvements to the site such as a playground, picnic tables, or annual picnic.
Off setting HOA fees: Land where the hotel, restaurant, and surrounding area will be leased to a totally separate company that will be paying a substantial lease payment. Based upon projections of the hotel’s operating income, that lease payment should be able to cover a majority or perhaps even nearly all of the HOA’s needed funds.