Caravelle Tower HOA Risk Assessment: Workable with rules

02 The five questions

What the documents decide
before your first guest books.

Five dots is the best answer for an owner who wants to run the unit themselves. One dot is a red flag. Open “What the documents say” under each for the exact words.

Can you rent it your way?

Favorable

Whether the deed and rules let you rent short-term on your own terms: no requirement to use the on-site program, no minimum stay that kills weekend bookings, and no rule against saying where the condo is.

Short-term rentals are allowed with no minimum stay, no on-site program requirement, any rental company and no advertising or disclaimer rules anywhere in the full 75-page deed packet, but an owner using a rental company must register it and an emergency contact with the management company, every owner hands over a key or code, and vehicles need a permit with 'rental info facing out'.

Short-term rentalsAllowed

Must use on-site programNo

Owner may rent it personallyYes

Off-site manager allowedYes

Owner-use limitsunstated; the deed restricts each unit to 'normal and customary resort or residential accommodations' for the owner, immediate family, tenants, guests and invitees with no minimum stay, no rental-program requirement and no owner-use cap; only time-sharing is barred (re-read in full in the new 75-page copy: no other rental article exists)

RegistrationRules sheet: an owner using a rental company must give the Management Company the rental company's name and phone number plus an emergency contact name and phone number; every owner must give the management company a key or door code for pest control and emergencies; a parking permit or owner sticker with 'the rental info facing out' must hang from each vehicle's mirror. Nothing requires registering guests or a self-managed listing with the HOA. (No document prohibits an owner renting personally; 'owner_may_self_manage' is true because nothing restricts it and the rules sheet treats using a rental company as optional.)

Vote to change rental rulesRules and regulations: adopted and amended by the Board alone, provided they do not conflict with the Master Deed or Articles (Master Deed Art. XIV, pp.12-13; By-Laws 4(j)(iv), p.8). Master Deed use restrictions (Art. XV): amendment proposed by a board majority or members owning a majority of units, approved by members owning at least 75% of the basic value per Exhibit B, with Grantor consent for anything touching its reserved rights (Art. XXX, pp.30-31). By-Laws: two-thirds of total statutory value (By-Laws 9(c), p.12). Commercial-unit rights (Art. VI) cannot be amended without the written consent of the Grantor or the then owner of the commercial unit (p.9).

What the documents say (9)

“Each unit is hereby restricted to providing normal and .customary resort or residential accommodations for the owner or owners thereof, their immediate families, tenants, gueste and invitees.”Master Deed (57bff02a copy), Art. XV Use Restriction Applicable to Residential Condominium Units, p.13

“PROVIDED, HOWEVER, INTERVAL OWNERSHIP REFERRED TO AS "TIME SHARING" OR "VACATION TIME SHARING" SHALL NOT BE PERMITTED NOR SHALL "VACATION MULTIPLE OWNERSHIP".”Master Deed, Art. VII, p.10

“RENTALS: All owners using a rental company must provide the Management Company the name and phone number of your rental company, also a contact name and phone number is to be provided in case ofan ernergency.”Rules and Regulations (36524938 copy), RENTALS, p.1

“All present or future owners; tenants, or anyother person who might use the facilities of the condominium in any Manner, are subject to the provisions of this MASTER DEED and all documents appurtenant hereto and incorporated herewith, and the mere acquisition or rental of any UNIT, or the mere act of occupancy of any UNIT, shall signify that the Tipe of this MASTER DEED are accepted and ratified in all respects.”Master Deed (57bff02a copy), Art. XXXII, p.33

“Provided, however, that so long as Caravelle Properties Limited Partnership shall retain any interest in the condominium it may utilize any unit which it owns from time to time, for a sales and rental office, model or other usage for the purpose of selling or renting units in said condominium. Further still, Caravelle Properties Limited Partnership, its successors or assigns, may assign this commercial usage right to such other persons or entities as it may choose.”Master Deed, Art. XV, p.13

“The commercial unit may be used in connection with the rental of units, a restaurant or any other uses normally associated with the operation of a resort condominium.”Master Deed, Art. VI Use of Commercial Unit, p.8

“iv) To make and amend regulations governing the use of the property, real and personal, in the condominium project so long as such regulations or amendments thereto do not conflict with the restrictions and limitations which may be placed upon rhe use of such property under the terms of the Articles of Incorperation and Master Deed;”By-Laws (9f62619f copy), Section 4(j)(iv), p.8

“At such meeting, the amendment or amendments proposed must be approved by an affirmative vote of members owning at least seventy-five (75%) percent of the basic value of the condominium property as a whele. based upon the values set out in Exhibit "'B", in order for such amendment or amendments to become effective.”Master Deed (57bff02a copy), Art. XXX Amendment of Master Deed, p.30

“c) All present or furure owners, tenants, future tenants, or their employees or any other person that might use said condominium or any of the facilities thereof in any manner, are subject to the regulations set forth in these By-Laws and in said Articles of Incorporation and Master Deed.”By-Laws (9f62619f copy), Section 1(c), p.1

Will your guests be treated like guests?

Typical

Whether a guest who booked through you gets the same resort as a guest who booked through the front desk: the same pools, parking, wristbands and check-in, or a second-class version of them.

Guests get every common element and the commercial unit's public areas with no wristbands, passes or disclaimer, which matches the guide's 'same amenities' tier, but no document provides front-desk check-in for off-program guests and the owner handles keys and the mandatory parking permit whose issuer and count are unstated.

Amenities for your guestsSame as program guests

Wristbands & parking passesNo wristbands or guest passes are mentioned in any document. Parking: only owners and guests may park in the lot; a valid parking permit or owner sticker must be displayed at all times, hung from the rear-view mirror with the rental info facing out; vehicles without one can be towed at the owner's expense, and all vehicles must have a valid license tag (Rules). Who issues permits, how many per unit, and any cost are unstated. The Master Deed lets the Association assign exclusive parking spaces by rule (Art. IX, pp.10-11).

Check-inunstated; the privately owned Commercial Unit includes a 55 SF Check-in Desk area and the maids' rooms, but no document says the desk serves off-program guests or that the HOA provides any check-in. The 2024 budget's $52,452 'Caravelle Resort' line and $46,862 'Tower Income' line are unexplained and may reflect a service arrangement with the on-site operator, but the budget does not say.

TrashGuests and owners dispose of trash themselves: nothing may be left outside the unit; bags go beside the trash can on each floor or to the trash cart outside the building near the pool (Rules). Renovation debris must be removed from the building at the owner's expense. The Association budgets Waste Disposal at $4,100 (2024 Budget, p.1).

ElevatorsNo smoking in elevators; luggage carts must be returned promptly to the lobby (Rules). No service-elevator or vendor-elevator restriction is stated. The Association carries an elevator maintenance contract ($12,540) and an elevator repair line ($2,000) (2024 Budget, p.1).

Housekeeping & linenunstated; the Commercial Unit includes the maids' rooms on the various floors (Master Deed Art. III(b), p.6), which implies on-site housekeeping belongs to the commercial-unit owner, but no document addresses linen or housekeeping for off-program rentals

What the documents say (10)

“The COMMON ELEMENTS (as opposed to the LIMITED COMMON ELEMENTS) shall be, and the same are hereby declared to be subject to a perpetual non-exclusive easement in favor of all of the owners of the UNITS in the condominium for their use and the use of their immediate families, guests, and invitees and for ail propex and normal purposes and for the furnishing of services and facilities for which the same are. reasonably intended for the enjoyment of said owners of UNITS.”Master Deed (57bff02a copy), Art. IX Perpetual Non-Exclusive Easement, p.10

“The owner or authorized occupant of a condominium wit, their guests and invitees, shall have access to. and use of the "public areae" of the commercial unit. on the same basis as the guests or invitees of the commercial unit.”Master Deed (57bff02a copy), Art. V, p.8

“The "public areas" shall include any restaurant,.consession grea, or other area open to the general public for guests or customers of the owmer or owner's lessee of the commercial UNIT. Im addition, their guests and inviteas: shall have a nonexclusive easement in, over.and across the main Lobby and cortidor within the commercial unit for the purposes of aecess to the elevators, stairways or other COMMON ELEMENTS utilized for the purposes of ingress and egress to the residential condominium units.”Master Deed (57bff02a copy), Art. V, p.8

“The owner of the commercial unit shall have the authority to promulgate reasonable rules and regulations regarding the public areas within the commercial unit and such rules and regulations shall be enforced by the Commercial UNIT Owner or Owner's Lessee.”Master Deed, Art. V, p.8

“"Commercial Unit" shall mean and comprise that portion of the first floor consisting of the Lobby area (2525SF) Check-in Desk area (55SF), Storage area (185SF) and Mechanical Space (171SF). The Commercial Unit shall also include the maids' rooms on the various floors.”Master Deed, Art. III(b), p.6 (the 57bff02a copy OCRs the first and third figures as '252SF' and '18SF')

“All corridors shall be deemed and considered LIMITED COMMON ELEMENTS and the ASSOCIATION shall have no authority to prohibit or restrict use of same so as to prohibit or restrict access to the UNIT or COMMON ELEMENTS.”Master Deed (57bff02a copy), Art. III Limited Common Elements, p.7

“PARKING: Only owners and guests are permitted to park in the lot- A valid parking pennit or owners sticker must be displayed at all times. Parking Permit must be hung from the rear view mirror with the rental info facing oul Ifnone is displayed then the vehicle caa be towed at the owner's expense by our towing company.”Rules and Regulations (36524938 copy), PARKING, p.1

“TRASH: No trash is to be left outside your condo, it must be disposed of pmperly either by placing it beside the trash can on your floor or taking it to the trash cart outside the building near the pool.”Rules and Regulations (36524938 copy), TRASH, p.1

“POOL: The pool rules are clearly posted in the pool area and are shictly enforced, there are NO lifeguards on duty at any time. Children must be accompanied by an adult at all times.”Rules and Regulations (36524938 copy), POOL, p.1

“SMOKING: No smoking in any common areas including elevators, lobby, restrooms, laundry, hallways, stairwells and poo1.”Rules and Regulations (36524938 copy), SMOKING, p.1

How much work lands on you?

Favorable

What the rules make the owner personally responsible for: a local contact who answers in minutes, keys and passes, trash, fines for guest behaviour, vendor hours and elevators.

Beyond normal hosting the owner only registers a rental company and emergency contact, deposits a key or code, lets the Association in for emergencies and common-element work, and polices quiet hours, parties, balcony and parking rules under an open-ended guest-fine clause; there is no response SLA, trash hauling, service-elevator or vendor-hours rule other than for renovations.

Local contactAn owner using a rental company must give the Management Company the rental company's name and phone number and an emergency contact name and phone number (Rules). No local-distance or named-agent requirement for self-managed owners is stated.

Locks & keysEvery owner must give the management company a key or the door code to the unit for pest control and emergencies (Rules); the Master Deed also lets the Association require a key on deposit for emergency entry (Art. XVIII, p.14). No lock-type or smart-lock rule is stated. Owners must also admit the Association's agent or other owners' representatives at reasonable times for maintenance, alteration or repair of common elements (Art. XIX, p.14). The 2024 budget carries a Pest Control line of $3,600 (p.1), consistent with the building-wide pest service the key rule supports.

FinesRules sheet: any violation of the rules by owners or their guests is subject to a fine to the owner, with the amount determined by the Board of Directors (no schedule published); renovation-rule violations are fined $100 a day 'either by the HOA or the Caravelle'. Master Deed Art. XXXI(b) makes the owner liable for repair costs caused by family, guests, agents or lessees to the extent not covered by Association insurance, and Art. XXXI(c) awards the Association its costs and attorney's fees in any enforcement proceeding while denying them to the owner. Neither the deed nor the by-laws contains an express fining power or fine schedule; the deed's listed remedies are damages, injunction and lien foreclosure. The 2024 budget expects $2,000 in Late Fees (p.1).

Contractors & vendorsRenovation work must finish by 5 PM with cleanup by 6 PM; all debris including boxes and furniture must be removed from the building and disposed of at the owner's expense (Rules). No alteration of a unit without the Association's prior written consent; no balcony enclosure, exterior changes, wiring, antennas or protruding equipment (Master Deed Art. XX, pp.14-15).

AlsoOwner maintains and replaces the unit's HVAC, appliances, fixtures, window glass, screens, doors, interior surfaces and the floors, walls, doors and railing of the balcony; if the owner fails to, the Association may enter, do the work and lien the unit for the cost (Art. XXII, pp.15-16). Balconies are limited common elements the owner must keep up (p.7). Owner pays the insurance-deductible portion of any covered repair to items the owner maintains (Art. XXII, p.16). Quiet hours 11 PM to 7 AM, house parties prohibited, pets must be cleaned up after and aggressive pets removed, no grills or anything thrown from balconies, no towels on railings, no fireworks (Rules). Purchasers in a voluntary sale are jointly and severally liable with the seller for unpaid assessments (Art. XXVIII(l), p.29). An owner is liable for injuries or damage from an accident in the unit or on its balcony to the same extent as a house owner, so personal liability cover for guests is on the owner (Art. XXIV, p.17). A purchaser must notify the Association in writing of its interest in the unit (Art. XXVII, pp.23-24). The Association may alter or improve common elements on board approval alone; improvements made exclusively or substantially for particular units are assessed solely to those owners (Art. XXI, p.15). An owner is also liable for any increase in fire insurance rates caused by use, misuse, occupancy or abandonment of the unit (Art. XXXI(b), p.32).

What the documents say (13)

“LOCKS: All owners must provide the management company with a key or the code to your unit for pest control and emergencres.”Rules and Regulations (36524938 copy), LOCKS, p.1

“A}IY VIOLATION OF'THE RULES BY EITHER OWNERS OR YOUR GUESTS IS SUBJECT TO A FINE TO TIIE OWNERS THE FIIYE WILL BE DETERMINED BY THE BOARD OF DIRECTORS”Rules and Regulations (36524938 copy), closing clause, p.1

“R-ENOVATIONS: Arry owner or contactor doing renovations in your unit must complete work by 5 PM, cleanup by 6 PM. All trash including boxes and furnihuc must be r€moved from the building and disposed of at the ownefs expense. An owner not following these rules witl be fined $100 a day either by the HOA or the Caravelle.”Rules and Regulations (36524938 copy), RENOVATIONS, p.1

“ANNOYANCES: Be respectful of other owners and guests, our quiet time is I I PM to 7 AM. House parties are strictly prohibited. Reasonable behavior must be exercised at all times.”Rules and Regulations (36524938 copy), ANNOYANCES, p.1

“Each unit owner shall be responsible for the up-keep and maintenance of said balconies and said balconies shall be subject to reasonable rules and regulations of the ASSOCIATION.”Master Deed (57bff02a copy), Art. III Limited Common Elements, p.7

“It shall be the responsibility of the owner, at his expense, to keep all sereen (if any) arid window glass and doors in food repair, and to maintain the floors, 'interior walls, doors and railing of the balcony, Provided, however, said owner shall take no action that will alter the exterior appearance of the building.”Master Deed (57bff02a copy), Art. XXII Maintenance and Repair by Owners of Units, pp.15-16

“Should the owner fail to provide the Maintenance and/or repairs as Tequired, the ASSOCIATION or its-designee shall have the right to enter the UNIT to. accomplish same at the sole cost and expense of the owner and said cost and expeuse shall be charged against the owner and shall become a lien on his UNIT in Fike manner as a@ monthly assessment.”Master Deed (57bff02a copy), Art. XXII, p.16

“The owner of. each UNIT shall be liable and responsible for the maintenance, repair and replacement, as the case may be, of all air conditioning and heating equipment, stoves, vefrigerators, fans or other appliances or equipment, including any fixtures and/or their connections required to provide water, light, power, telephone, sewage and senitary service to his UNIT”Master Deed (57bff02a copy), Art. XXII, p.15

“The owner or owners of each UNIT shall be liable for the expense of any maintenance, repair or replacement rendered necessary by his act, neglect or carelessness, or by that of any member of his family, or his or their guests, employees, agents oz lessees, but only. to the extent that such expense is not met by the proceeds of insurance carried by ASSOCIATION, . Such liability shall include any. increase in fire insurance rates occasioned by use, misuse, occupancy or abandonment of a UNIT or its appurtenances”Master Deed (57bff02a copy), Art. XXXI(b) Remedies in Event of Default, p.32

“No owner of any unit may make alterations therein withour first obtaining the written consent of the ASSOCIATION.”Master Deed (57bff02a copy), Art. XX, p.14

“In case of any emergency originating in or threatening any UNIT, regardless of whether the owner is present at the time of such emergency, the Board of Directors of ASSOCIATION or any other person authorized by it, or the Building Superintendent or Managing Agent, shall have the right to enter such UNIT for the purpose of remedying or abating the cause of such emergency, and such right of entry shall be immediate, and to facilitate entry in the event of any such emergency, the owner of each UNIT, if required by the ASSOCIATION, shall deposit under the control of the ASSOCIATION a key to such UNIT.”Master Deed, Art. XVIII Right of Entry into Units in Emergencies, p.14

“The owner of a UNIT shall be liable for injuries or damage resulting from an accident in his own UNIT or on his adjacent balcony to the same extent and. degree that the owner of a house would be liable for an accident occurring within his house.”Master Deed (57bff02a copy), Art. XXIV, p.17

“{c} In any proceeding arising because of an alleged default by the owner of any UNIT, the ASSOCIATION, if. successful shall be entitled to recover the costs of the proceedings, and such reasonable attorney's fees as may be determined by the Court, but in no event shall the owner of any UNIT be entitled to such attorney's fees.”Master Deed (57bff02a copy), Art. XXXI(c), p.32

Is the money healthy?

Red flag

Whether the association can pay for the building without surprise bills: reserves, special assessments, insurance deductibles, how fast dues are rising, and how much of the fee passes through to a master association.

Two special assessments in about 30 months ($339,862 booked in the 2024 budget and $5,000 per unit due June 2026) plus a 7-year $555,000 loan adding about $145 per unit per month, a 2024 reserve contribution of only 5.5% with no replacement-reserve line, reserves so depleted the bank refused to underwrite, insurance at 16.7% of budget with no detail, repairs at 46.5% of budget, a 1983 motel conversion with a recorded water-damage history, and a two-year-old budget whose totals do not foot and whose per-unit dues page is blank.

2024 budget$856,844

Reserves6% of budget

Special assessments2024 $339,862 total, booked as 2024 revenue with a stated due date of 12/27/2023; the 'Per unit cost as follows' table is blank in the extraction (averages about $5,963 per unit if spread over 57 units; actual split by unit type unstated) unstated in the budget; the same budget carries $398,190 of General Repairs and Maintenance and $30,000 of engineer's fees, and the 2026 letter says reserves were spent on basement repairs, exterior building repairs, a lighting project, stairwell replacement and roof replacement, but no document ties the 2024 assessment to a named project (2024 Budget pp.1, 3; HOA Letter p.2); 2026 $5,000 per unit average, $285,000 total across 57 units, payable by the end of June 2026 either at once or over a 4-month period (coupons to be mailed); plus a planned monthly dues increase averaging about $145.25 per unit for 7 years (to be implemented before loan closing) to service a $555,000 bank loan at an estimated 6.55% ($8,279.37/month, $99,352.41/year) Balcony repair per the engineer's recommendation; bank-estimated total project cost $840,000 based on a DR Moore estimate that is expressly NOT A BID; funds to be held at Pinnacle Financial Partners; bidding has not started

Insurance2024 Budget: 'TOTAL INSURANCE: ($142,720.00)' as a single line with no breakdown by policy (p.3); that is 16.7% of the $856,844 total budget and 30.7% of the $464,720 Regular Assessments line. No policy, declarations page, deductible or premium history was supplied. The Master Deed (Art. XXV, pp.17-22) requires the Association to carry casualty insurance on all units and common elements at replacement value (excluding excavation and foundations) as set annually by the board, including vandalism, windstorm, water damage and war risk if available; public liability and property damage; workers' compensation; and any other coverage the board or an institutional lender requires, with proceeds paid to an Insurance Trustee (a South Carolina bank with trust powers). Insurance cost is a common expense. Shortfalls after a casualty come first from the Reserve for Replacements and then by assessment (p.20). Owners pay the deductible portion of covered repairs to items they maintain (Art. XXII, p.16) and may buy their own contents and liability cover (Art. XXIV, pp.16-17); an owner is liable for any increase in fire insurance rates caused by use or misuse of the unit (Art. XXXI(b), p.32).

DelinquencyAssessment is in default if not paid by its due date; the board may accelerate the remaining annual installments on 10 days' notice; after 20 days past due the Association may enforce by any means in the Act including foreclosure and sale; delinquent amounts bear 18% per annum interest (or another rate the Association sets); the owner is personally liable for interest, collection costs and a reasonable attorney's fee whether or not suit is brought; the Association holds a lien (subordinate to prior-recorded mortgages) and in foreclosure is entitled to rent from the owner at market rates and to a receiver; a buyer in a voluntary conveyance is jointly and severally liable for the seller's unpaid assessments; a foreclosure purchaser takes free of prior delinquencies, which are absorbed by all owners (Master Deed Art. XXVIII(g)-(l), pp.26-29). The 2024 budget anticipates $2,000 of Late Fees (p.1). Current delinquency figures unstated.

What the documents say (31)

“REVENUES: Regular Assessments $464,720.00 Late Fees $2,000.00 Vending Income Reserves $3,400.00 Tower Income $46,862.00 Special Assessment $339,862.00 TOTAL REVENUE: ($856,844.00)”2024 Budget, p.1

“REPAIRS & MAINTENANCE: General Repairs & Maintenance $398,190.00 Caravelle Resort $52,452.00 Elevator Maintenance Contract $12,540.00 Elevator Repairs $2,000.00 Fire Alarm Maintenance $4,000.00 Lawn Maintenance / Supplies $1,500.00 Maintenance Supplies $2,000.00 Pest Control $3,600.00 Pool / Spa Repairs / Supplies / Chemical $7,000.00 Security Camera Repairs $400.00 Signs / Keys $250.00 Generator Repairs $5,000.00 ($488,932.00) TOTAL REPAIRS & MAINTENANCE: ($489,432.00)”2024 Budget, p.1

“Management Fees $16,200.00 Office Supplies $300.00 Postage $350.00 Accounting Services $2,400.00 Profesional Fees (Engineer) $30,000.00 Legal Services $1,000.00 Taxes $700.00 Administrative Fee (Online Billpay) $580.00 Annual Inspections $3,600.00 Printing $400.00 TOTAL GENERAL & ADMINISTRATIVE: ($ 56,330.00)”2024 Budget, p.1

“UTILITIES: Internet (Contract Data) 6,500.00 Cable $26,000.00 Electric $39,000.00 Telephone (Security Lines / Pools $3,900.00 Waste Disposal $4,100.00”2024 Budget, p.1

“Water & Sewer $24,000.00 Gas $25,000.00 TOTAL UTILITIES: ($128,500.00) INSURANCE TOTAL INSURANCE: ($142,720.00) RESERVES: OPERATING RESEERVES: ($ 46,862.00) TOTAL RESERVES: ($ 46,862.00) TOTAL EXPENSES ($856,844.00)”2024 Budget, p.3

“Quarterly Dues For 2024: Special Assessment ($ 339,862.00) Per unit cost as follows & Due Date: 12/27/2023”2024 Budget, p.3 (the per-unit table that follows is blank in the extraction; p.4 is empty)

“DR Moore did an estimate (NOT A BID) based on the engineer's recommendation and from that information, the bank estimates the cost of the project to be $840,000.”HOA Letter - Balcony Repair Assessment, p.1

“Raise $285,000 (average of $5,000/unit) through a special assessment.”HOA Letter - Balcony Repair Assessment, p.1, bank loan conditions

“Based on a 7-year loan, the average monthly payment would be approximately $145. This is an estimate – see below. This increase should be implemented prior to loan closing.”HOA Letter - Balcony Repair Assessment, p.1, bank loan conditions

“Special Assessment ($5,000/unit) $285,000.00 Loan $555,000.00 Total Funds for Project $840,000.00 Loan Amount $555,000.00 Total Loan Term (years) 7 Amortization Period 7 Estimated Interest Rate 6.55% Est. Monthly Payment $8,279.37 Est. Annual Payment $99,352.41 Avg. Monthly Payment/Unit (57) $145.25”HOA Letter - Balcony Repair Assessment, p.1, Caravelle Tower Loan Payment Estimate as of 2/26/2026

“The bank informed us the underwriters won't even consider a loan since we don't have enough funds in our reserve account. We have used reserves to pay for the basement repairs, exterior building repairs, lighting project, stairwell replacement and roof replacement. We replenish the reserve account with monthly transfers from the operating account.”HOA Letter - Balcony Repair Assessment, p.2

“The $5,000 assessment will need to be paid by the end of June in order for us to move forward with securing the loan and begin the bid process. This assessment can be paid at once or over the 4 month period. A letter and coupons for payment will be mailed to homeowners.”HOA Letter - Balcony Repair Assessment, p.2

“Should the Board of Directors at any time determine, in the: sole discretion of said Board of Directors, that the assessments levied are or. May prove to be insufficient to pay the costs of operation and management of the condominium, or in the event of emergencies, said Board of Directors shall have the authority to levy such additional assessment or assessments as it shall deem necessary.”Master Deed (57bff02a copy), Art. XXVIII(c), p.25

“The Board of Directors of ASSOCIATION, in establishing said Annual Budget for operation, management and maintenance of the Project shall include therein a sum to be collected and mainteined as a reserve fund for the replacement of COMMON ELEMENTS, .which reserve fund shail be far the purpose of enabling ASSOCIATION to replace. structural elements and mechanical equipment constituting: personal property which may constitute a portion of the COMMON ELEMENTS held for the joint use and benefit of all of the owners of all UNITS, The amount to be allocated to such Reserve Fund for Replacements shall be established by said Board of Directors and shall be accounted for separately from general assessments.”Master Deed (57bff02a copy), Art. XXVIII(d), p.25

“Nothing herein contained shall limit ASSOCIATION from applying any monies in such Reserve Fund for replacements to meet other needs or requirements of ASSOCIATION in operating or managing the Project in the event of emergencies, or in the event that the sums collected from the owners of UNITS are insufficient to meet the then fiscal financial requirements of ASSOCIATION”Master Deed (57bff02a copy), Art. XXVIII(d), p.25

“All assessments levied against the owners of UNITS and said UNITS shall be uniform and, unless specifically otherwise provided for in this MASTER DEED, the assessments made by ASSOCIATION shall be in such proportion that the amount of assessment levied against each owner of a UNIT and his UNIT shall bear the same ratio to the total assessment made against all owners of UNITS and their UNITS as does the undivided interest in COMMON ELEMENTS appurtenant to each UNIT bear to the total undivided interest in COMMON ELEMENTS appurtenant to all UNITS.”Master Deed, Art. XXVIII(a), p.24

“(b) The assessment levied against the owner of each UNIT and his UNIT shall be payable in annual, quarterly or monthly installments, or in such other installments and at such times as may be detarmined by the Board of Directors of ASSOCIATION.”Master Deed (57bff02a copy), Art. XXVIII(b), p.24

“In the event any assessment, installment er accelerated assessments are not paid within twenty(20) days after their due date, the ASSOCIATION, through its Board of Directors, may proceed to enforce arid collect the said assessments against the UNIT owner in any manner provided for by the Act, including the right' of foreclosure and sale. When in default, the delinquent assessment or delinquent-.installment thereof due to ASSOCIATION shall bear interest at the rate of eighteen percent (18%) per annum (or such other interest rate established by ASSOCIATION) until such delinquent assessment or installment thereof, and all interest due thereon, have been- paid to ASSOCIATION.”Master Deed (57bff02a copy), Art. XXVIII(g), p.26

“In any voluntary conveyance of a UNIT, the Grantee shall be jointly and severally liable with the Grantor for all unpaid assessments against Grantor made prior to the time of such voluntary conveyance, without prejudice to the rights of the Grantee to recover from the Grantor the amounts paid by the Grantee therefor”Master Deed (57bff02a copy), Art. XXVIII(l), p.29

“(a) Casualty insurance covering all of the UNITS and COMMON ELEMENTS, in an amount equal to the replacement value thereof, exclusive of excavation and foundation costs, as determined annually by the Board of Directors of the ASSOCIATION, such coverage to afford protection against (i) loss or damage by fire or other hazards covered by the standard extended coverage or other petils endorsements; and (ii) such other risks of a similar or dissimilar nature as are or shall be customarily covered with respect to the buildings similar in construction, location and use to the UNIT, including but not limited to vandaliem, malicious Mischief, windstorm, water damage and war risk insurance, if available.”Master Deed (57bff02a copy), Art. XXV(a), p.17

“The monies to be deposited by ASSOCIATION with the Insurance Trustee, in said latter event, may be paid by. ASSOCIATION out of its Reserva for Replecements Fund, and if the amount in such Reserve for Replacements is not sufficient, then ASSOCIATION shall levy and collect an assessment against the owners of all UNITS and: said UNITS in an amount which shall provide the funds required to pay for said repair, replacement or reconstruction.”Master Deed (57bff02a copy), Art. XXV, p.20

“i) Comnon expense budget, which shall include, without limiting the generality of the foregoing, the estimated amounts necessary for maintenance and operation of common elements, landscaping, street and walkways, office. expense, utility services, casualty insurance, liability insurance, administration and reserves (operating and: replacement); and ii) Proposed assessments against each member. Copies, of the proposed budget and proposed assessments shall be transmitted te each member on or before January 1 of the year for which the budget is made”By-Laws (9f62619f copy), Section 7(b), pp.10-11

“The assessments will initially be on a quarterly basis. unless. changed by vote of the majority of the Board of Directors.”By-Laws (9f62619f copy), Section 7(c), p.11

“e) 4n audit of the aceounts of the Association shall be mada annually by Certified Public Accountants and a copy of the report shall be furnished to each member not later than April lst of the fiscal year following the year for which the report is made”By-Laws (9f62619f copy), Section 7(e), p.11

“x) To pay all costs of power, water, sewer and other utility services rendered to the condominium and not billed to the owners of the separate units;”By-Laws (9f62619f copy), Section 4(j)(x), p.8

“Caravelle HPR was-formerly a motel which opened in 1983 and was converted into condominiums in 1988. Caravelle HPR iss currently experiencing water damage which resulted from improper maintenance and not from any breach of warranty or negligence on the part of Caravelle Management;”Master Deed packet - Agreement and Release (December 1993) (57bff02a copy), Recital C, p.50

“Caravelle Properties shall contribute the sum of $28,000.00 to Caravelle Tower for the purpose of repairing water damage and waterproofing the Caravelle BPR;”Master Deed packet - Agreement and Release (December 1993) (57bff02a copy), Paragraph 1, p.51

“the costs of such alterations or improvements shall be assessed as common expense to be assessed and collected from all of the owners of UNITS according to the percentages set out in Exhibit "B" of the MASTER DEED. However, where any of alterations and improvements are exclusively or substantially exclusively made for the benefit of the owner or owners of a UNIT or UNITS, then the cost of such alterations and improvements shall be assessed against and collected solely from the owner or owners of the UNIT or UNITS exclusively or substantially exclusively benefitted”Master Deed, Art. XXI Right of Association to Alter and Improve Common Elements and Assessment Therefor, p.15

“(e) The Board of Directors of ASSOCIATION, in establishing said Annual Budget for operation, management and maintenance of the Project, shall include therein a sum to be collected and maintained as a generat operating reserve which shall be used ta provide @ measure of financial stability during the periods of special stress”Master Deed (57bff02a copy), Art. XXVIII(e), pp.25-26

“ASSOCIATION, upon written request of the owner of such UNIT, shall furnish to the proposed purchaser or mottgagee, a statement verifying the status of payment of any assessment which shall be due and payable to ASSOCIATION by the owner of such UNIT. Such statement shall be executed by any officer of the ASSOCIATION and any purchaser or mortgagee may rely upon such statement in concluding the proposed purchese or mortgage transaction, and ASSOCIATION shall be bound by such statement.”Master Deed (57bff02a copy), Art. XXVIII(l), pp.28-29

“except that the owner of such UNIT shall be, in said instance, required to pay such portion of the costs of such maintenance, repair and replacement as shall, by reason of the applicability of any deductibility provision of such insurance, exceed the amount of the insurance proceeds applicable to such maintenance, repair or replacement.”Master Deed (57bff02a copy), Art. XXII, p.16

Who's really in charge?

Typical

Who holds the power the documents hand out: an owner-elected board, or a developer or commercial-unit owner with deed-level rights over rentals, guest services and the building's name.

Owner-elected three-person board with one vote per unit and the developer's control expired in 1990, but a privately owned Commercial Unit holds the lobby, check-in desk and maids' rooms with rental and restaurant rights, writes the lobby rules, can be altered or subdivided without an owner vote and has an entrenched article, the Grantor's reserved rights need its consent to change, the deed needs 75% of value to amend, and the Association still pays an unexplained $52,452 a year to 'Caravelle Resort'.

StructureOne association

Commercial unitYes, with its own deed rights

On-site operatorCaravelle Properties Limited Partnership (the developer; general partner Caravelle Resort, Inc.) owned the Commercial Unit and 'provides on site rental management' as of the December 1993 Agreement and Release (deed packet p.50); the 2024 budget carries a $52,452 'Caravelle Resort' line under Repairs and Maintenance and the undated rules sheet refers to a 'Management Company' and to fines 'by the HOA or the Caravelle'; the current operator, the commercial-unit owner and what the 'Caravelle Resort' line pays for are unstated

BoardThree directors since the May 28, 1990 By-Law amendment (originally five); elected by plurality at the annual members' meeting, now the last Saturday in February, with staggered terms set in 1991 (three, two and one year) and two-year terms thereafter; voting for directors is non-cumulative; the president and treasurer must be directors; directors and officers serve without fees; vacancies filled by remaining directors until the next annual meeting; removal as provided by South Carolina corporate law (By-Laws 4, 6; Amendment to By-Laws, deed packet p.70). The developer's right to designate a board majority (while owning 6+ units) or one director (1-5 units) expired January 1, 1990 (By-Laws 4(a) p.4; Articles VIII, deed packet p.44). The board may contract out management and delegate all Association powers to the contractor except those the Master Deed reserves to the board or members (By-Laws 4(j)(vi), p.8; Articles III.2(d), deed packet p.42); the 2024 budget shows $16,200 of Management Fees, so an outside manager is engaged (2024 Budget p.1). Directors may act without a meeting by signed written record (By-Laws 5(b), p.9). The Articles also require that at least a majority of the directors be members of the Association (owners) or authorized representatives, officers or employees of a corporate member (Articles VIII, deed packet p.44).

Developer rightsGrantor Caravelle Properties Limited Partnership (general partner Caravelle Resort, Inc.): while it owns any unit it may sell, lease or license its units on any terms (Art. XXXIII, p.33); while it retains any interest it may use any unit it owns as a sales and rental office or model and may assign that commercial usage right to anyone (Art. XV, p.13); it may use one unit as a sales office for one year after filing (Art. III(c), p.6); its board representatives and it as a member need not abstain on management contracts or other matters in which it has a pecuniary interest (Art. XXXIII, pp.33-34); it must receive audited annual financial statements while it owns a unit or holds a mortgage (Art. XXXIV, p.34); its reserved rights cannot be altered without its written consent (Art. XXX, pp.30-31; By-Laws 9(e), p.13; Articles XV, p.47). Its board-designation power ended January 1, 1990. As of December 1993 it still owned the commercial unit and several residential units and ran on-site rental management (Agreement and Release, p.50); current holdings unstated, though the 2024 budget still pays $52,452 to 'Caravelle Resort' for an unstated purpose (2024 Budget p.1).

Commercial-unit rightsThe Commercial Unit (lobby, check-in desk, storage, mechanical space and the maids' rooms on each floor) is a separately owned unit with a 0.0210 percentage interest. It may be used in connection with the rental of units, a restaurant or any other resort-condominium use; its owner may alter, re-lay-out, subdivide or combine it and reapportion its common-element interest without any vote of the Association, owners or mortgagees, subject to not changing other units' percentages, not harming structural integrity or exterior appearance, and holding the Association harmless; Art. VI cannot be added to, amended or deleted without the written consent of the Grantor or the then owner of the commercial unit (Art. VI, pp.8-9). Its owner makes and enforces rules for the lobby and other public areas, while residential owners and their guests keep a non-exclusive easement through the lobby and corridor to elevators and stairs (Art. V, p.8). No document grants the commercial unit an exclusive right to rent residential units or to run guest services, and the rules sheet treats owners' outside rental companies as normal.

VotesOne vote per unit, and a member owning several units casts one vote per unit (Articles of Incorporation Art. IV.4, deed packet p.43); quorum is a majority (51% of statutory value) of the membership (By-Laws 2(b), p.2); a majority of units represented at a quorate meeting binds the members unless the documents require more (By-Laws 2(f), p.3); proxies valid only for the meeting named; special meetings on request of members owning a majority of units (By-Laws 3(b), p.3). The percentage interest in common elements cannot change without unanimous consent (Art. IV, p.8). A unit owned by an entity (LLC, corporation, trust) must file a certificate signed by the record owner naming the person entitled to cast its vote; co-owners who cannot agree lose the vote on that question (By-Laws 2(c), p.2).

Changing the deedMaster Deed: proposed by a majority of the board or members owning a majority of units; adopted by members owning at least 75% of the basic value per Exhibit B at a special meeting called on 20-60 days' notice; changes to percentage interests or the assessment basis need every owner and mortgagee; changes to Grantor or mortgagee rights need their written consent; recorded within 10 days (Art. XXX, pp.30-31). By-Laws and Articles: proposed the same way and adopted by members owning not less than two-thirds of total statutory value at a special joint meeting (By-Laws 9, pp.12-13; Articles XV, pp.46-47). Termination of the regime requires unanimous owners and all lienholders (Art. XXIX, p.29). Rules: board alone (Art. XIV, pp.12-13). The Master Deed controls over the By-Laws and Articles in any conflict (By-Laws 10, p.13).

Disputes or lawsuitsDecember 1993 Agreement and Release: the Association released the developer and 'Caravelle Management' from all claims over water damage at the building in exchange for a $28,000 contribution toward water-damage repair and waterproofing, with recitals that the 1983 motel converted in 1988 was 'currently experiencing water damage which resulted from improper maintenance' (deed packet pp.50-57). The 2026 letter reports reserves spent on basement repairs, exterior building repairs, a lighting project, stairwell replacement and roof replacement, an engineer's balcony report, and a bank refusing to underwrite a loan until reserves are rebuilt. The 2024 budget carries $30,000 of engineer's fees and only $1,000 of Legal Services (p.1). No pending litigation is mentioned. No arbitration or mediation clause appears in any document; the deed's remedies are court actions for damages, injunctive relief and lien foreclosure, with costs and attorney's fees to the Association if it prevails and never to the owner (Art. XXXI(a) and (c), pp.31-32).

What the documents say (21)

“The Board of Directors: of the Association and Succeeding Board: of Directors shall consist of. three (3) persons..”Master Deed packet - Amendment to By-Laws (May 28, 1990) (57bff02a copy), Paragraph 1, p.70

“The Annual 'Members! Meeting shall be held at the office of the Association on the last Saturday in February of each year at a time to he set by the Board of Directors, which time shall be stated in the notice of the meeting.”Master Deed packet - Amendment to By-Laws (May 28, 1990) (57bff02a copy), Paragraph 2, p.70

“iv) At the 1991 annual meeting, one board member shall be elected to serve for three years, one .board member shall be elected to serve for twa years and one board member shall be elected to serve for one year. Thereafter, each board member elected at the annual meeting shall serve for two years.”Master Deed packet - Amendment to By-Laws (May 28, 1990) (57bff02a copy), Paragraph 3, p.70

“The power of the Owner to so designate Directors as above referred to shall terminate on the lst day of January 1990.”By-Laws (9f62619f copy), Section 4(a), p.4

“On all.matters on which the Membership shall be entitled to vote, there shall be only one vote for each UNIT in the CONDOMINIUM, which vote may be exercised or cast by the owner or owners of each UNIT in such manner as may be provided in the By-Laws hereafter adopted by the Corporation. Should any member own more fhan one UNIT, such Member shall be entitled to exercise or cast as many votes as he owns UNITS, in the manner provided by said By-Laws”Master Deed packet - Articles of Incorporation (57bff02a copy), Art. IV.4, pp.42-43

“b) A quorum at members' meetings shall consist of persons entitled to cast a majority (51% of -the statutory value of the property) of the votes of the entire meubership.”By-Laws (9f62619f copy), Section 2(b), p.2

“The grantor or its designee, tenant or other subsequent owner af the commercial unit shall have the right, without the vote or consent of Caravelle Tower Owners Association, Inc,, other unit owners or the representative or representatives of holders of mortgages on units to (i) make altertions, additions or improvements in, to or upon the commercial unit, whether structural or nonstructural, interior or,exterior, ordinary or extraordinary; (ii) change the layout or number of roome in the commercial wnit from time to time; (iii) change the size of the commercial unit by subdividing the same into any desired number of rooms (or by combining any rooms resulting from such subdivision); and (iv) Teappor tion among the newly created units resulting from such subdivision (or combination) rheir appurtenant interest in the COMMON ELEMENTS;”Master Deed (57bff02a copy), Art. VI, pp.8-9

“The provisions of this section may not be added to, amended or deleted without the prior written consent of the Grantor or the then owner of the commercial unit.”Master Deed (57bff02a copy), Art. VI, p.9

“The Grantor intends (but shall not be obliged) to retain ownership of the commercial unit.”Master Deed, Art. VI, p.8

“So long as the Grantor herein, Caravelle Properties Limited Partnership, shall own, any UNIT, the said Caravelle Properties Limited Partnership shall have the absolute right to lease or sell or to grant a license to use any such UNIT to any person, firm or corporation, upon any terms and conditions as it shall deem to be in its own best interest.”Master Deed (57bff02a copy), Art. XXXIII, p.33

“Any representative of Caravelle Properties Limited Partnership serving on the Board of Directors of ASSOCIATION shall not be required to disqualify himself mpon any vote Upon any management contract or othér matter between Caravelle Properties Limited Partnership and ASSOCIATION where the said Caravelle Properties Limited Partnership may have pecuniary or any other interest.”Master Deed (57bff02a copy), Art. XXXIII, pp.33-34

“Furthermore, no amendment of this MASTER DEED shall be adopted which would operate to affect the validity or priority of any mortgage held by a mortgagee oz which.would alter, amend or modify in any manner whatsoever the rights, powers and privileges granted and reserved herein in favor of Caravelle Properties Limited Partnership and mortgagees without the written consent of all mortgagees and Caravelle Properties Limited Partnership, as the case may be.”Master Deed (57bff02a copy), Art. XXX, p.31

“In order for such amendment or amendments to become effective, the same must be approved by an affirmative vote of the members owning not less than two-thirds of the total statutory value of.the property in the condominium.”By-Laws (9f62619f copy), Section 9(c), p.12

“e) Notwithstanding the foregoing provisions of this Article 9, no amendment to these By-Laws which shall abridge, amend or alter the 'right of Caravelle Properties Limited Partnership to designate and select members of each Board of Directors of the Association, eas provided in. Article 4 hereof, may be adopted or become effective without the prior written consent of Caravelle Properties Limited Partnership.”By-Laws (9f62619f copy), Section 9(e), p.13

“In the administration of the operation and Management of the candominium, said ASSOCIATION shall have and is hereby granted the authority and power to enforce the provisions of this MASTER DEED, levy and collect assessments in the manner hereinafter provided, and to adopt, promulgate and enforce such rules and regulations governing the use of the UNITS and COMMON ELEMENTS, as' the Board of Directors of' the ASSOCIATION may deem to be in the best interest of the condominium.”Master Deed (57bff02a copy), Art. XIV, pp.12-13

“vi) Te contract for the management of the common areas and facilities in the condominium project and ro designate to such contractor all of the powers and duties of. the Association, except those which may be required by the Master Deed to have approval of the Board of Directors. or membership of the Association;”By-Laws (9f62619f copy), Section 4(j)(vi), p.8

“B. Caravelle Properties was the developer of Caravelle Tower HPR and currently owns the commercial unit, several residential units and provides on site rental management at Caravelle HPR:”Master Deed packet - Agreement and Release (December 1993) (57bff02a copy), Recital B, p.50

“This MASTER DEED and said plan of condominium ownership may only be terminated by the unanimous consent of all of the owners of all UNITS in all existing phases and all af the parties holdin ee liens ot other encumbrances ageinst any of said UNITS, in which event the termination of the condominium shall be by such plan as may be then adopted by said owners and parties holding any mortgages, liens ox other encumbrances.”Master Deed (57bff02a copy), Art. XXIX Termination, p.29

“c) When a unit is owned by other than one or more natural persons, the person entitled to cast the vote for Such unit shall be designated by a certificate' signed by the record owner of such unit and filed with the Secretary.”By-Laws (9f62619f copy), Section 2(c), p.2

“10. CONFLicTs. in the event of any conflict between the provisions of the Master Deed and the Provisions of these By-Laws, or the Articles of Incorporation of Caravelle Tower " Owners Association, Inc., the provisions of the Master Deed. shall control.”By-Laws (9f62619f copy), Section 10, p.13

“at least a majority of the Board of Directors shall be members of the Corporation, or shall be authorized representatives, officers or employees of a corporate member of the Corporation.”Master Deed packet - Articles of Incorporation (57bff02a copy), Art. VIII, p.44

03 Pros and cons

For the owner who runs it themselves.

The same building reads very differently to an owner on the rental program and an owner on Airbnb. This list is for the second one.

Working for you

The deed's only use restriction is that each unit provide 'normal and customary resort or residential accommodations' for the owner, family, tenants, guests and invitees: no minimum stay, no owner-use cap and no rental-program requirement, with only time-sharing barred; the full 75-page copy confirms no other rental article exists (Master Deed, Art. XV p.13 and Art. VII p.10).
The rules sheet treats using an outside rental company as routine; the only requirement is to give the management company the rental company's name and phone plus an emergency contact (Rules and Regulations, RENTALS p.1).
Guests of any owner hold a perpetual non-exclusive easement over all common elements and may use the public areas of the commercial unit (lobby, any restaurant or concession) on the same basis as the commercial unit's own guests, and the Association cannot restrict corridor access; nothing reserves the pool or any amenity to on-site program guests (Master Deed, Art. IX p.10, Art. V p.8 and Art. III p.7).
No wristband, guest-pass, listing-disclaimer or advertising rule appears in any supplied document (Rules and Regulations p.1; Master Deed Arts. XIV-XVII pp.12-14).
The developer's board-control rights expired January 1, 1990 and the board is now three owner-elected directors with one vote per unit, a 51% quorum and annual CPA audits delivered to members (By-Laws 4(a) p.4 and 7(e) p.11; Amendment to By-Laws, deed packet p.70; Articles IV.4, deed packet p.43).
Small 56-unit building with assessments spread by fixed percentage interest (studio 0.0148, one-bedroom 0.0193, deluxe 0.0210), so each owner's share of any cost is predictable (Master Deed, Exhibit B pp.39-40 and Art. XXVIII(a) p.24).
No master association or second-tier pass-through: a single regime with one budget, and the 2024 budget is a single-building operating budget with no master or upper-tier line (Master Deed Art. XIV pp.12-13; By-Laws 1 p.1; 2024 Budget pp.1, 3).
No service-elevator, vendor-hours (other than renovations) or 30-minute response rule in any document (Rules and Regulations p.1).
The deed obliges the Association, on the seller's written request, to give a buyer a binding written statement of the unit's assessment status that the buyer may rely on, so a clean estoppel letter is a right, not a favor (Master Deed, Art. XXVIII(l) pp.28-29).
The Association's casualty policy must cover all units as well as the common elements at replacement value, so an owner only needs contents and liability cover plus the deductible share on items the owner maintains (Master Deed, Art. XXV(a) p.17; Art. XXIV pp.16-17; Art. XXII p.16).
The Association budget pays building-wide cable ($26,000), internet 'Contract Data' ($6,500), electric ($39,000), water and sewer ($24,000), gas ($25,000), pest control, elevator and fire-alarm contracts, so many operating costs a self-managing host would otherwise carry are inside dues, though the budget does not state whether in-unit service is included (2024 Budget pp.1, 3).
No arbitration clause, no rental-office exclusivity and no management-contract tie-in bind owners; the on-site operator's only deed-level rights are the Grantor's assignable right to run a sales and rental office from units it owns and the commercial unit's lobby rules (Master Deed, Art. XV p.13; Art. V p.8; Art. XXXI pp.31-32).

Watch-outs

The 2024 budget was balanced only with a $339,862 Special Assessment revenue line, 40% of the $856,844 total and almost three-quarters of the $464,720 in regular assessments, with a stated due date of 12/27/2023; its purpose and per-unit split are not in the extraction (an even spread over 57 units is about $5,963 per unit), so two special assessments have hit owners within about 30 months (2024 Budget pp.1, 3; HOA Letter pp.1-2).
A $5,000-per-unit balcony special assessment ($285,000 across 57 units) is due by the end of June 2026, payable at once or over four months, and it is only the equity slice of an $840,000 project; the remaining $555,000 is to be borrowed over 7 years at an estimated 6.55%, adding roughly $145.25 per unit per month to dues before loan closing (HOA Letter - Balcony Repair Assessment, pp.1-2).
The $840,000 figure is a bank estimate built on a contractor estimate that the letter stresses is 'NOT A BID'; bidding has not started, so the final cost, assessment and loan size could change (HOA Letter - Balcony Repair Assessment, p.1).
Reserves are thin by any measure: the 2024 budget funds only an 'Operating Reserves' line of $46,862 (5.5% of the budget, and exactly equal to the unexplained 'Tower Income' revenue line) with no replacement-reserve line despite the deed requiring both (the only other reserve reference is a $3,400 'Vending Income Reserves' revenue line of unstated use), and by 2026 the bank's underwriters 'won't even consider a loan since we don't have enough funds in our reserve account' after reserves paid for basement, exterior, lighting, stairwell and roof work (2024 Budget p.3; Master Deed Art. XXVIII(d)-(e) pp.25-26; HOA Letter p.2).
Insurance was $142,720 in 2024, 16.7% of the budget and 30.7% of regular assessments, shown as one undetailed line with no deductible, wind or flood information, for a 1983 oceanfront motel conversion (2024 Budget p.3).
General Repairs & Maintenance alone was budgeted at $398,190 (46.5% of the 2024 budget) plus $30,000 of engineer's fees, which together with the 1993 water-damage settlement and the 2026 balcony project point to a building in a sustained capital-repair cycle (2024 Budget p.1; Master Deed packet, Agreement and Release pp.50-51; HOA Letter p.2).
The 2024 budget pays $52,452 to 'Caravelle Resort' under Repairs and Maintenance and books $46,862 of 'Tower Income', neither explained; the developer's general partner was Caravelle Resort, Inc., the rules sheet lets fines be levied 'by the HOA or the Caravelle', and the deed lets any developer representative vote on contracts in which the developer has a pecuniary interest, so ask what this contract covers and who holds the commercial unit today (2024 Budget p.1; Rules and Regulations RENOVATIONS p.1; Master Deed Art. XXXIII pp.33-34).
The 2024 budget's printed totals do not foot (repairs lines sum to $488,932 against a printed $489,432 total; category totals sum to $863,844 against a printed $856,844 total expense) and the per-unit dues table on pp.3-4 is blank, so per-unit dues cannot be confirmed from this set (2024 Budget pp.1, 3-4).
The building is a 1983 motel converted in 1988 with a recorded 1993 water-damage and waterproofing settlement in which the Association released the developer for $28,000; combined with the basement, exterior, roof, stairwell and now balcony work, expect ongoing structural spending (Master Deed packet, Agreement and Release pp.50-51).
The deed makes each owner responsible for the upkeep of their balcony, including its floors, walls, doors and railing, so an owner can face both a share of the building-wide balcony assessment and owner-level balcony costs, and the Association can enter, repair and lien the unit if the owner does not (Master Deed, Art. III p.7 and Art. XXII pp.15-16).
The lobby, check-in desk, storage, mechanical space and maids' rooms are a privately owned Commercial Unit whose owner may run unit rentals or a restaurant, alter or subdivide it without any owner vote, and make and enforce the rules for the lobby; Article VI cannot be amended without that owner's consent (Master Deed, Art. V-VI pp.8-9).
Any rule violation by an owner's guests is fined to the owner, with the amount set case by case by the board and no published schedule; renovation violations are $100 a day and may be levied 'either by the HOA or the Caravelle', which appears to refer to the Caravelle resort operator or management company as well as the Association (the sheet does not define 'the Caravelle') (Rules and Regulations, RENOVATIONS and closing clause p.1).
Owners must hand the management company a key or door code for pest control and emergencies, and the Association may require a key on deposit, which complicates self-managed smart-lock setups (Rules and Regulations, LOCKS p.1; Master Deed Art. XVIII p.14).
Every vehicle needs a parking permit or owner sticker hung from the mirror 'with the rental info facing out' or it can be towed at the owner's expense; the documents do not say who issues permits, how many a unit gets, or what they cost (Rules and Regulations, PARKING p.1).
Delinquency terms are harsh: 18% interest, acceleration of the year's installments on 10 days' notice, foreclosure after 20 days past due, owner pays the Association's attorney's fees whether or not suit is filed, and a buyer is jointly and severally liable for the seller's unpaid assessments, so get an estoppel letter (Master Deed, Art. XXVIII(g)-(l) pp.26-29).
The board may levy additional assessments at any time in its sole discretion when it deems the budget insufficient or in emergencies, and may spend the replacement reserve on other needs (Master Deed Art. XXVIII(c)-(d) p.25; By-Laws 7(b) p.11).
Changing the Master Deed takes 75% of the basic value and anything touching the developer's reserved rights needs its written consent; By-Law changes take two-thirds of statutory value, so neither the use restrictions nor the commercial-unit rights are easy to fix (Master Deed Art. XXX pp.30-31; By-Laws 9(c) p.12).
Quiet hours 11 PM to 7 AM, a strict ban on house parties, no grills or anything thrown from balconies, and no towels on railings all land on the owner through the guest-fine clause (Rules and Regulations, ANNOYANCES and BALCONIES p.1).
The governing documents supplied are from 1988-1990, the rules sheet is undated, and the only budget is for 2024; there is no current (2025 or 2026) budget, dues schedule, insurance summary, reserve study, audit or minutes, so current dues and the dues increase planned for the balcony loan cannot be verified from this set (Master Deed p.1; By-Laws p.13; Rules and Regulations p.1; 2024 Budget p.1).
The board can alter or improve common elements on its own approval and assess the cost to everyone by percentage interest, and anything done mainly for particular units is charged only to those owners, so balcony-type work could be allocated unevenly (Master Deed, Art. XXI p.15).
An investor holding title in an LLC or trust must file a voting certificate with the Secretary or the unit's vote may not be cast, and an owner is liable for guest accidents in the unit or on the balcony like a house owner, so carry personal liability cover (By-Laws 2(c) p.2; Master Deed Art. XXIV p.17).

04 The money

What you pay, and where it goes.

An HOA fee is a share of a budget. The budget tells you whether the fee is buying upkeep or catching up on it.

Regular assessments, 2024

Unit type	Per month	Per year
TOTAL for all 57 units, not per unit: Regular Assessments line (2024 Budget p.1); the per-unit 'Quarterly Dues For 2024' table announced on p.3 is blank in the extraction, so per-unit dues are unstated	$38,727	$464,720
Studio (0.0148 Exhibit B share) - DERIVED, not stated: $464,720 x 0.0148; shown only because the deed allocates assessments by Exhibit B percentage (Art. XXVIII(a))	$573	$6,878
One-bedroom (0.0193 Exhibit B share) - DERIVED, not stated: $464,720 x 0.0193	$747	$8,969
One-bedroom deluxe and Commercial Unit (0.0210 Exhibit B share) - DERIVED, not stated: $464,720 x 0.0210	$813	$9,759

What the dues cover

2024 Budget utility lines paid by the Association: Internet (Contract Data) $6,500, Cable $26,000, Electric $39,000, Telephone (Security Lines / Pools) $3,900, Waste Disposal $4,100, Water & Sewer $24,000, Gas $25,000 (total utilities $128,500, 15.0% of budget); the $26,000 cable and $6,500 'Contract Data' internet lines indicate a building-wide contract, but the budget does not say whether in-unit cable, internet or electricity is included or separately metered2024 Budget service lines paid by the Association: Pest Control $3,600, Elevator Maintenance Contract $12,540, Fire Alarm Maintenance $4,000, Pool / Spa Repairs / Supplies / Chemical $7,000, Lawn Maintenance $1,500, Generator Repairs $5,000, Security Camera Repairs $400, Annual Inspections $3,600, Management Fees $16,2002024 Budget: insurance $142,720 (single line, no detail) and an Operating Reserve contribution of $46,862; no replacement-reserve line appears; a $3,400 'Vending Income Reserves' revenue line (p.1) is the only other reserve reference and is not explainedBy-Laws 7(b): the common expense budget covers maintenance and operation of common elements, landscaping, street and walkways, office expense, utility services, casualty insurance, liability insurance, administration and reserves (operating and replacement)By-Laws 4(j)(x): the Association pays power, water, sewer and other utilities 'rendered to the condominium and not billed to the owners of the separate units'; whether in-unit electricity, water or cable is separately billed is unstatedNot included: the owner maintains and replaces the unit's HVAC, appliances, fixtures, window glass, screens, doors, interior surfaces and the balcony floors, walls, doors and railing (Master Deed Art. XXII)Assessments are allocated by Exhibit B percentage interest (studio 0.0148, one-bedroom 0.0193, deluxe and commercial 0.0210) and were initially billed quarterly, changeable by board vote (Master Deed Art. XXVIII(a)-(b); By-Laws 7(c)); the 2024 budget's 'Quarterly Dues For 2024' heading confirms quarterly billing continuedMaster Deed Art. XXV(a): the Association's casualty policy must cover all UNITS as well as common elements at replacement value (excluding excavation and foundations), so unit interiors as defined in Art. III are on the master policy; the owner carries contents and personal liability (Art. XXIV) and pays the deductible share on items the owner maintains (Art. XXII)

Where the budget goes

General Repairs & Maintenance$398,190 · 46%

Insurance (single line)$142,720 · 17%

Caravelle Resort (under Repairs & Maintenance; purpose unstated)$52,452 · 6%

Operating Reserves$46,862 · 6%

Electric$39,000 · 5%

Profesional Fees (Engineer)$30,000 · 4%

Cable$26,000 · 3%

Gas$25,000 · 3%

The figures, in the documents' words (31)

“REVENUES: Regular Assessments $464,720.00 Late Fees $2,000.00 Vending Income Reserves $3,400.00 Tower Income $46,862.00 Special Assessment $339,862.00 TOTAL REVENUE: ($856,844.00)”2024 Budget, p.1

“REPAIRS & MAINTENANCE: General Repairs & Maintenance $398,190.00 Caravelle Resort $52,452.00 Elevator Maintenance Contract $12,540.00 Elevator Repairs $2,000.00 Fire Alarm Maintenance $4,000.00 Lawn Maintenance / Supplies $1,500.00 Maintenance Supplies $2,000.00 Pest Control $3,600.00 Pool / Spa Repairs / Supplies / Chemical $7,000.00 Security Camera Repairs $400.00 Signs / Keys $250.00 Generator Repairs $5,000.00 ($488,932.00) TOTAL REPAIRS & MAINTENANCE: ($489,432.00)”2024 Budget, p.1

“Management Fees $16,200.00 Office Supplies $300.00 Postage $350.00 Accounting Services $2,400.00 Profesional Fees (Engineer) $30,000.00 Legal Services $1,000.00 Taxes $700.00 Administrative Fee (Online Billpay) $580.00 Annual Inspections $3,600.00 Printing $400.00 TOTAL GENERAL & ADMINISTRATIVE: ($ 56,330.00)”2024 Budget, p.1

“UTILITIES: Internet (Contract Data) 6,500.00 Cable $26,000.00 Electric $39,000.00 Telephone (Security Lines / Pools $3,900.00 Waste Disposal $4,100.00”2024 Budget, p.1

“Water & Sewer $24,000.00 Gas $25,000.00 TOTAL UTILITIES: ($128,500.00) INSURANCE TOTAL INSURANCE: ($142,720.00) RESERVES: OPERATING RESEERVES: ($ 46,862.00) TOTAL RESERVES: ($ 46,862.00) TOTAL EXPENSES ($856,844.00)”2024 Budget, p.3

“Quarterly Dues For 2024: Special Assessment ($ 339,862.00) Per unit cost as follows & Due Date: 12/27/2023”2024 Budget, p.3 (the per-unit table that follows is blank in the extraction; p.4 is empty)

“DR Moore did an estimate (NOT A BID) based on the engineer's recommendation and from that information, the bank estimates the cost of the project to be $840,000.”HOA Letter - Balcony Repair Assessment, p.1

“Raise $285,000 (average of $5,000/unit) through a special assessment.”HOA Letter - Balcony Repair Assessment, p.1, bank loan conditions

“Based on a 7-year loan, the average monthly payment would be approximately $145. This is an estimate – see below. This increase should be implemented prior to loan closing.”HOA Letter - Balcony Repair Assessment, p.1, bank loan conditions

“Special Assessment ($5,000/unit) $285,000.00 Loan $555,000.00 Total Funds for Project $840,000.00 Loan Amount $555,000.00 Total Loan Term (years) 7 Amortization Period 7 Estimated Interest Rate 6.55% Est. Monthly Payment $8,279.37 Est. Annual Payment $99,352.41 Avg. Monthly Payment/Unit (57) $145.25”HOA Letter - Balcony Repair Assessment, p.1, Caravelle Tower Loan Payment Estimate as of 2/26/2026

“The bank informed us the underwriters won't even consider a loan since we don't have enough funds in our reserve account. We have used reserves to pay for the basement repairs, exterior building repairs, lighting project, stairwell replacement and roof replacement. We replenish the reserve account with monthly transfers from the operating account.”HOA Letter - Balcony Repair Assessment, p.2

“The $5,000 assessment will need to be paid by the end of June in order for us to move forward with securing the loan and begin the bid process. This assessment can be paid at once or over the 4 month period. A letter and coupons for payment will be mailed to homeowners.”HOA Letter - Balcony Repair Assessment, p.2

“Should the Board of Directors at any time determine, in the: sole discretion of said Board of Directors, that the assessments levied are or. May prove to be insufficient to pay the costs of operation and management of the condominium, or in the event of emergencies, said Board of Directors shall have the authority to levy such additional assessment or assessments as it shall deem necessary.”Master Deed (57bff02a copy), Art. XXVIII(c), p.25

“The Board of Directors of ASSOCIATION, in establishing said Annual Budget for operation, management and maintenance of the Project shall include therein a sum to be collected and mainteined as a reserve fund for the replacement of COMMON ELEMENTS, .which reserve fund shail be far the purpose of enabling ASSOCIATION to replace. structural elements and mechanical equipment constituting: personal property which may constitute a portion of the COMMON ELEMENTS held for the joint use and benefit of all of the owners of all UNITS, The amount to be allocated to such Reserve Fund for Replacements shall be established by said Board of Directors and shall be accounted for separately from general assessments.”Master Deed (57bff02a copy), Art. XXVIII(d), p.25

“Nothing herein contained shall limit ASSOCIATION from applying any monies in such Reserve Fund for replacements to meet other needs or requirements of ASSOCIATION in operating or managing the Project in the event of emergencies, or in the event that the sums collected from the owners of UNITS are insufficient to meet the then fiscal financial requirements of ASSOCIATION”Master Deed (57bff02a copy), Art. XXVIII(d), p.25

“All assessments levied against the owners of UNITS and said UNITS shall be uniform and, unless specifically otherwise provided for in this MASTER DEED, the assessments made by ASSOCIATION shall be in such proportion that the amount of assessment levied against each owner of a UNIT and his UNIT shall bear the same ratio to the total assessment made against all owners of UNITS and their UNITS as does the undivided interest in COMMON ELEMENTS appurtenant to each UNIT bear to the total undivided interest in COMMON ELEMENTS appurtenant to all UNITS.”Master Deed, Art. XXVIII(a), p.24

“(b) The assessment levied against the owner of each UNIT and his UNIT shall be payable in annual, quarterly or monthly installments, or in such other installments and at such times as may be detarmined by the Board of Directors of ASSOCIATION.”Master Deed (57bff02a copy), Art. XXVIII(b), p.24

“In the event any assessment, installment er accelerated assessments are not paid within twenty(20) days after their due date, the ASSOCIATION, through its Board of Directors, may proceed to enforce arid collect the said assessments against the UNIT owner in any manner provided for by the Act, including the right' of foreclosure and sale. When in default, the delinquent assessment or delinquent-.installment thereof due to ASSOCIATION shall bear interest at the rate of eighteen percent (18%) per annum (or such other interest rate established by ASSOCIATION) until such delinquent assessment or installment thereof, and all interest due thereon, have been- paid to ASSOCIATION.”Master Deed (57bff02a copy), Art. XXVIII(g), p.26

“In any voluntary conveyance of a UNIT, the Grantee shall be jointly and severally liable with the Grantor for all unpaid assessments against Grantor made prior to the time of such voluntary conveyance, without prejudice to the rights of the Grantee to recover from the Grantor the amounts paid by the Grantee therefor”Master Deed (57bff02a copy), Art. XXVIII(l), p.29

“(a) Casualty insurance covering all of the UNITS and COMMON ELEMENTS, in an amount equal to the replacement value thereof, exclusive of excavation and foundation costs, as determined annually by the Board of Directors of the ASSOCIATION, such coverage to afford protection against (i) loss or damage by fire or other hazards covered by the standard extended coverage or other petils endorsements; and (ii) such other risks of a similar or dissimilar nature as are or shall be customarily covered with respect to the buildings similar in construction, location and use to the UNIT, including but not limited to vandaliem, malicious Mischief, windstorm, water damage and war risk insurance, if available.”Master Deed (57bff02a copy), Art. XXV(a), p.17

“The monies to be deposited by ASSOCIATION with the Insurance Trustee, in said latter event, may be paid by. ASSOCIATION out of its Reserva for Replecements Fund, and if the amount in such Reserve for Replacements is not sufficient, then ASSOCIATION shall levy and collect an assessment against the owners of all UNITS and: said UNITS in an amount which shall provide the funds required to pay for said repair, replacement or reconstruction.”Master Deed (57bff02a copy), Art. XXV, p.20

“i) Comnon expense budget, which shall include, without limiting the generality of the foregoing, the estimated amounts necessary for maintenance and operation of common elements, landscaping, street and walkways, office. expense, utility services, casualty insurance, liability insurance, administration and reserves (operating and: replacement); and ii) Proposed assessments against each member. Copies, of the proposed budget and proposed assessments shall be transmitted te each member on or before January 1 of the year for which the budget is made”By-Laws (9f62619f copy), Section 7(b), pp.10-11

“The assessments will initially be on a quarterly basis. unless. changed by vote of the majority of the Board of Directors.”By-Laws (9f62619f copy), Section 7(c), p.11

“e) 4n audit of the aceounts of the Association shall be mada annually by Certified Public Accountants and a copy of the report shall be furnished to each member not later than April lst of the fiscal year following the year for which the report is made”By-Laws (9f62619f copy), Section 7(e), p.11

“x) To pay all costs of power, water, sewer and other utility services rendered to the condominium and not billed to the owners of the separate units;”By-Laws (9f62619f copy), Section 4(j)(x), p.8

“Caravelle HPR was-formerly a motel which opened in 1983 and was converted into condominiums in 1988. Caravelle HPR iss currently experiencing water damage which resulted from improper maintenance and not from any breach of warranty or negligence on the part of Caravelle Management;”Master Deed packet - Agreement and Release (December 1993) (57bff02a copy), Recital C, p.50

“Caravelle Properties shall contribute the sum of $28,000.00 to Caravelle Tower for the purpose of repairing water damage and waterproofing the Caravelle BPR;”Master Deed packet - Agreement and Release (December 1993) (57bff02a copy), Paragraph 1, p.51

“the costs of such alterations or improvements shall be assessed as common expense to be assessed and collected from all of the owners of UNITS according to the percentages set out in Exhibit "B" of the MASTER DEED. However, where any of alterations and improvements are exclusively or substantially exclusively made for the benefit of the owner or owners of a UNIT or UNITS, then the cost of such alterations and improvements shall be assessed against and collected solely from the owner or owners of the UNIT or UNITS exclusively or substantially exclusively benefitted”Master Deed, Art. XXI Right of Association to Alter and Improve Common Elements and Assessment Therefor, p.15

“(e) The Board of Directors of ASSOCIATION, in establishing said Annual Budget for operation, management and maintenance of the Project, shall include therein a sum to be collected and maintained as a generat operating reserve which shall be used ta provide @ measure of financial stability during the periods of special stress”Master Deed (57bff02a copy), Art. XXVIII(e), pp.25-26

“ASSOCIATION, upon written request of the owner of such UNIT, shall furnish to the proposed purchaser or mottgagee, a statement verifying the status of payment of any assessment which shall be due and payable to ASSOCIATION by the owner of such UNIT. Such statement shall be executed by any officer of the ASSOCIATION and any purchaser or mortgagee may rely upon such statement in concluding the proposed purchese or mortgage transaction, and ASSOCIATION shall be bound by such statement.”Master Deed (57bff02a copy), Art. XXVIII(l), pp.28-29

“except that the owner of such UNIT shall be, in said instance, required to pay such portion of the costs of such maintenance, repair and replacement as shall, by reason of the applicability of any deductibility provision of such insurance, exceed the amount of the insurance proceeds applicable to such maintenance, repair or replacement.”Master Deed (57bff02a copy), Art. XXII, p.16

Caravelle Tower.

The documents behind this page.

What the documents decide
before your first guest books.

Can you rent it your way?

Will your guests be treated like guests?

How much work lands on you?

Is the money healthy?

Who's really in charge?

For the owner who runs it themselves.

Working for you

Watch-outs

What you pay, and where it goes.

Regular assessments, 2024

What the dues cover

Where the budget goes

What to put in the house manual.

What to ask the association for.

Have the documents read
for the building you are weighing.

Caravelle Tower.

The documents behind this page.

What the documents decidebefore your first guest books.

Can you rent it your way?

Will your guests be treated like guests?

How much work lands on you?

Is the money healthy?

Who's really in charge?

For the owner who runs it themselves.

Working for you

Watch-outs

What you pay, and where it goes.

Regular assessments, 2024

What the dues cover

Where the budget goes

What to put in the house manual.

What to ask the association for.

Have the documents readfor the building you are weighing.

What the documents decide
before your first guest books.

Have the documents read
for the building you are weighing.