Carolinian Beach Resort 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.

STR is expressly allowed with no stated minimum stay and any manager, and the HOA itself is barred from rental management, but owners cannot run key exchange or a front desk on the premises and the developer reserved the right to regulate advertising that uses the resort's name and photos (no such rules were supplied).

Short-term rentalsAllowed

Must use on-site programNo

Owner may rent it personallyYes

Off-site manager allowedYes

Owner-use limitsNone stated. Units are restricted to residential use by owners, their immediate families, guests, licensees and invitees, and the deed expressly preserves the owner's right to rent or lease. No unit may be converted to timeshare/interval ownership (except future phases submitted by the Grantor).

Registrationunstated — no owner/guest registration requirement appears in the Master Deed, By-Laws, Pet Policy or minutes. The Master Deed requires owners to deposit a unit key with the Association if the Association requires it (Art. XVII) and to notify the Association in writing on any transfer (Art. XXVI).

Advertising rulesThe Grantor reserved the right to impose reasonable rules on how owners and rental managers advertise units for rent, to prevent use of the name and photographic images of Carolinian Resort in a way that misleads the public about the size of inventory offered or the guest services available (Master Deed Art. VII(iii), p.9). No such rules were supplied. Commercial Unit C-2 holds an exclusive advertising easement over corridors, elevators, the building exterior and garage, and controls movable signs on common elements; owners may not place any sign visible from outside the unit, including 'For Sale' signs.

Vote to change rental rulesMaster Deed amendments need 67% of the undivided interest (proposed by a board majority or 25% of owners, at a special meeting). The commercial-activity restriction in Art. XIV (which contains the rental/key-pickup/front-desk limits) cannot be amended without the Grantor's consent AND a unanimous vote of all unit owners; any amendment touching Grantor rights needs the Grantor's written consent; amendments touching commercial-unit rights need the Grantor plus all commercial unit owners.

What the documents say (10)

“Provided however, nothing herein shall be construed as limiting the right of any OWNER of any UNIT from renting or leasing his, her, their or its UNIT, subject to all terms and conditions of this Master Deed.”Master Deed, Article XIV, page 12

“UNIT OWNERS may rent their Units, but are restricted against using any part of the COMMON ELEMENTS to engage in the business of renting.”Master Deed, Article XIV, page 13

“no commercial activities shall be conducted within any UNIT, COMMON ELEMENT or LIMITED COMMON ELEMENT, nor shall the same be modified or altered to accommodate any such commercial use, including, but not limited to, operation of rental management services, key pick up and drop off, front desk, gift shop, restaurant, or bar.”Master Deed, Article XIV, page 12

“Daily or weekly maid service is permitted by independent contractors acting for one or more UNIT OWNERS, but only the owner of COMMERCIAL UNIT C-2 shall be entitled to use the on premises maids closets.”Master Deed, Article XIV, page 13

“The foregoing restriction on commercial activities may not be amended without the consent of the GRANTOR, its successors and assigns, and the unanimous vote of all UNIT OWNERS.”Master Deed, Article XIV, page 13

“(iii) in the case of owners that desire to rent residential UNITS they own, to impose reasonable rules and regulations concerning the advertisement of UNITS for rent by owners and rental managers to prevent use of the name and photographic images of Carolinian Resort in a manner that is misleading to the general public as to the size of inventory of UNITS that is being offered or as to the types of guest services that are available in connection with the rental.”Master Deed, Article VII, page 9

“The ASSOCIATION is not intended to and shall not become involved in the business or practice of rental management of RESIDENTIAL UNITS,”Master Deed, Exhibit E By-Laws, By-Laws Article I, Section 4, page 52

“and excepting such right of GRANTOR, no UNIT or any portion thereof may be submitted to a plan of Interval Ownership or any form of timesharing.”Master Deed, Article XIV, page 12

“the Board of Directors of the ASSOCIATION or any other person authorized by it or any other person or entity authorized by the UNIT OWNER (including rental managers and their agents), 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.”Master Deed, Article XVII, page 14

“All present or future OWNERS, tenants or other persons who 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 provisions of this Master Deed are accepted and ratified in all respects.”Master Deed, Article XXXI, page 30

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.

Owners' guests share the full common-element easement (pools, lazy river, elevators) and no document reserves amenities to program guests, but the lobby/check-in belongs to the commercial unit so an independent owner handles keys and check-in, and no wristband or parking-pass practice is documented.

Amenities for your guestsMost, not all

Off limits to your guestsLobby and Check-In area (part of Commercial Unit C-2, not a common element) — off-program guests have no deed right to front-desk service, Breakfast Room on the second level (Commercial Unit C-5), Maids closets and vending areas on levels 2–21 (Commercial Unit C-4 / C-2 rights), Portions of the ground-level pool deck designated 'Limited Common Area of COMMERCIAL UNIT C-2' where only the C-2 owner may sell food, beverage or retail, No document states that pools, lazy river, spa, elevators or the leased exercise room are withheld from off-program guests; the deed grants owners' guests and invitees the common-element easement

Wristbands & parking passesunstated for wristbands/pool passes. Parking is a non-exclusive easement over a garage the regime does not own; the garage owner may prescribe parking rules and designate spaces for its own exclusive use; the HOA pays $15,000/yr parking deck rent and funds a parking lot attendant ($17,000 in 2026) and parking lot cleaning. The 2025 annual meeting discussed hang tags for authorized vehicles, signage and towing of unauthorized or long-term parked vehicles; no issuer, cost or per-unit limit is stated.

Check-inowner handles — the lobby/check-in belongs to Commercial Unit C-2 (new luggage carts were bought in 2024 'to enhance guest and owner services', Annual Meeting Packet 2025 p.7) and the deed bars any other owner from operating key pick up/drop off or a front desk in any unit or common element

Trashunstated for guests; trash compactors/chutes are common elements, and the ground-level trash area is a limited common element of Commercial Unit C-2. Trash removal ($30,000/yr) is an HOA expense.

ElevatorsTower elevators, stairs and hallways are common elements accessible by all owners and their guests; the 10-story hotel building's elevators and hallways are Commercial Unit C-3. Elevator modifications of roughly $500,000 were flagged as upcoming in 2025. No service-elevator or vendor-elevator rule appears in the documents.

Housekeeping & linenOwners may use independent contractors for daily or weekly maid service, but only the C-2 owner may use the on-premises maids closets. Hallway & corridor care is a bulk service paid by the HOA ($167,000 in 2026). A pool attendant & towel service line existed in 2022 ($23,870) but was dropped from 2023 onward.

What the documents say (7)

“the 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 UNITS in the Condominium for their use and the use of their immediate families, guests, licensees and invitees, for all proper and normal residential 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, Article VII, page 9

“COMMERCIAL UNIT C-2 consists of all areas designated as such on the Plans, including without limitation the areas designated as Lobby and Check In on the ground level.”Master Deed, Exhibit B, Exhibit B, page 39

“Only the Owner of a COMMERCIAL UNIT C-2 shall be entitled to conduct commercial activities (including without limitation food, beverage, and retail sales) in the designated vending areas or on the areas of the pool deck shown as "Limited Common Area of COMMERCIAL UNIT C-2" or upon other COMMON ELEMENTS.”Master Deed, Article XIV, pages 12–13

“In no event, however, shall the provisions hereof be deemed to imply any right or easement in favor of Carolinian Resort Horizontal Property Regime for exclusive use of designated or identified parking spaces.”Master Deed, Exhibit A, Exhibit A, pages 36–37

“Further, the GRANTOR or owner of the above-described property may prescribe certain rules and regulations governing the use of the parking areas which all UNIT Owners shall comply with, including the designation of spaces upon said property for the exclusive use of the owner(s) of said property or others.”Master Deed, Exhibit A, Exhibit A, page 37

“Proposed solutions include installing clear signage, implementing hang tags for authorized vehicles, and enforcing towing policies for unauthorized or long-term parked vehicles.”Annual Meeting Packet 2026 (February 21, 2025 minutes), page 7

“LIMITED COMMON ELEMENTS appurtenant to COMMERCIAL UNIT C-2 include without limitation the trash, chemical storage, HVAC, elevator lobby, parking areas, and pool decks on the Ground Level, the telephone, mechanical, electrical, and fire command areas on the Second Level, and the electrical rooms on the Third through Twentieth Levels.”Master Deed, Exhibit B, Exhibit B, page 39

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.

No local-contact, registration, response-time, trash or service-elevator rule appears in the supplied documents; the real burdens are a smart-lock/remote check-in necessity (no on-site key handoff), a key deposit if demanded, monthly pest-control entry and liability for guest damage, deductible shortfalls and unpaid guest fines — but no Rules & Regulations beyond the pet policy were supplied, so this could fall once they are seen.

Local contactunstated — no local-agent or 24-hour contact requirement appears in any supplied document

Response timeunstated — no response-time rule; the Association and anyone the owner authorizes (including rental managers) may enter immediately in an emergency

Locks & keysIf the Association requires it, each owner must deposit a key to the unit under the Association's control (Art. XVII); if the owner fails to and the Association must enter to do owner-neglected repairs, the cost of making a key is charged to the owner and becomes a lien (Art. XXI). No on-premises key pick-up/drop-off or front desk may be run by anyone except Commercial Unit C-2, so independent owners need keyless/remote entry. A 'Locking devices maintenance' bulk-service line ($5,340) existed in 2022 and a 'Locking Devices Maintenance' label appears in the garbled 2025 proposed budget; building and gate codes were changed in 2024.

FinesThe board may impose reasonable fines (a lien on the unit) and suspend voting/common-area use after written notice and a 10-day window to request a hearing before a Covenants Committee or the board, with a 30-day appeal; fines for an occupant's violation are assessed first to the occupant and then to the owner if unpaid; self-help including towing is allowed. Fine amounts are not scheduled in the documents, but the 2025 P&L shows $14,700 of 'Violation' income. Late assessments: $25 late fee after 30 days, 18% interest, acceleration of the annual assessment, foreclosure, receivership and rent entitlement; purchaser in a voluntary sale is jointly liable for the seller's unpaid assessments.

Contractors & vendorsVendor and contractor parking was a 2025 problem area (hang tags, signage, towing proposed). Construction hours and enforcement were discussed in 2023. Structural or exterior alterations, balcony enclosures, storm panels, awnings, wiring, antennas or AC units protruding through walls require written Association consent (and the Grantor's written consent so long as the Grantor owns a unit); unauthorized work must be removed within 30 days or the Association removes it at the owner's cost. No service-elevator or delivery-hour rule is in the documents.

AlsoOwners maintain HVAC, appliances, window glass and sliding-door glass, interior surfaces and fixtures; the Association maintains balcony floors, walls and railings. Owners pay any insurance-deductible shortfall on in-unit repairs (deductibles are $25,000 per occurrence for wind/hail, water damage and all other perils). Owners are liable for damage caused by guests or lessees beyond insurance proceeds, including any increase in insurance rates. The Association or its contractor may enter monthly for pest control spraying inside units; a bed-bug program ($8,500/yr) is budgeted. All window treatments must have a uniform white backing; no signs (including For Sale) visible from outside; balconies limited to normal patio furniture, no storage, no clotheslines, no satellite dishes. Owner-purchased insurance must waive subrogation and, where the Association carries the same risk, be bought from the Association's insurer (Art. XXIII, p.18). A working-capital payment of twice the monthly assessment is due only on purchases from the Grantor or from a bulk 'Developer' buyer of 10+ units, not on ordinary resales (Art. XXVII.C, p.23). The Board may fine and suspend common-area use but may not limit ingress or egress to a unit (By-Laws Art. III §23, p.62).

What the documents say (11)

“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, Article XVII, page 14

“In that regard, ASSOCIATION, or its designated contractor may perform monthly service for pest control which may include spraying within each UNIT and each Owner of a UNIT is hereby so notified.”Master Deed, Article XVIII, page 14

“In the event that any occupant of a UNIT violates the Master Deed, By-Laws, or a rule or regulation and a fine is imposed, the fine shall first be assessed against the occupant; provided, however, if the fine is not paid by the occupant within the time period set by the Board, the Owner shall pay the fine upon notice from the ASSOCIATION.”Master Deed, Exhibit E By-Laws, By-Laws Article III, Section 23, page 62

“The OWNER or OWNERS of each UNIT shall be liable for the expense of any maintenance, repair or replacement rendered necessary by his or their act, neglect or carelessness, or by that of any MEMBER of his or their family, or his or their guests, employees, agents or lessees, but only to the extent that such expense is not met by the proceeds of insurance carried by the ASSOCIATION.”Master Deed, Article XXX.B, page 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, Article XXI, pages 16–17

“When in default, the delinquent assessment or delinquent installment thereof due to the ASSOCIATION shall bear interest at the rate of eighteen (18%) percent per annum until such delinquent assessment or installment thereof, and all interest due thereon, have been paid to the ASSOCIATION. Further, a late fee of $25.00 shall be assessed for each installment not paid within thirty (30) days after the due date thereof.”Master Deed, Article XXVII.G, page 24

“all window treatments shall include a uniform white backing which shall be visible from the exterior of the UNIT.”Master Deed, Article XIX, page 15

“4010 - Violation 14,700.00 0.00 14,700.00”Annual Meeting Packet 2026 (2025 Profit & Loss Budget vs. Actual), page 11

“and such other insurance coverage shall be obtained from the insurance company from which the ASSOCIATION obtains coverage against the same risk, liability or peril, if the ASSOCIATION has such coverage.”Master Deed, Article XXIII, page 18

“provided, however, nothing herein shall authorize the ASSOCIATION or the Board of Directors to limit ingress and egress to or from a UNIT.”Master Deed, Exhibit E By-Laws, By-Laws Article III, Section 23, page 62

“THE COASTAL CONTROL ACTS MAY ALSO RESTRICT A CO-OWNER'S RIGHT TO BUILD, REPAIR OR REBUILD STRUCTURES ON THE LAND.”Master Deed, Article I, page 3

Is the money healthy?

Typical

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.

Reserves are genuinely funded (audited reserve fund $793,646 at 12/31/2025; about $522k or 25% of the 2026 budget goes to capital and reserves) and property premiums fell 15%, but a separate $444k–$630k annual insurance assessment sits on top of regular dues that rise exactly 5.0% a year, the operating fund shows two loss years and a ($35,795) balance, collections deteriorated in 2025, deductibles are $25,000 per occurrence and ~$500k of elevator work is pending — typical rather than strong.

2026 budget$2,105,866

Dues change+5.0% on the year

Reserves3% of budget

Reserve balance$793,646

Reserve studyOn file

Special assessments2026 $444,000 budgeted (21.1% of the budget; about $196 to $404 per month per residential unit by percentage interest, derived) Insurance Special Assessment — a recurring annual levy billed separately from regular dues, allocated by percentage interest, to fund the property, flood, liability, D&O and pollution insurance program. No other (capital) special assessment appears in any document, and none was announced for the ~$500,000 elevator work.; 2025 $600,000 budgeted; $451,670 recognized as revenue (premium came in lower) Insurance Special Assessment; 2024 $630,000 budgeted; $502,348 recognized Insurance Special Assessment; 2023 $416,000 budgeted; $462,891 recognized; premiums were partly financed ($90,921 premium-financing liability at 9/30/2023 and $5,981 interest expense) Insurance Special Assessment; 2022 $336,913 recognized Insurance Special Assessment

InsuranceBroker: USI Insurance Services. Property (2504 N Ocean Blvd and 2503 Whitlers Drive): $20,250,000 per occurrence, per schedule, special form replacement cost including wind, hail, wind-driven rain and earthquake, written on a layered/shared program (2025–26 carriers: Starstone Specialty, United Specialty, Ironshore, Kemah Capital, Lloyds of London, Canopius, Everest, Axis, Lexington, Arch Specialty, Swiss Re, Westfield) — premium $348,946 for 05/31/2025–05/31/2026, down 15.3% from $411,807 for 05/31/2024–05/31/2025. General liability (James River): $1M occurrence / $2M aggregate, $5,000 deductible, $28,116.50, 04/08/2025–04/08/2026. Excess liability (James River): limit cut from $25M to $5M occurrence/aggregate at the same $26,500 premium. D&O (Continental Casualty): $2M, $2,500 retention, $4,595 (was $4,339). Pollution (Greenwich): $1M, $5,000 SIR, $1,549.95. Total program roughly $426,332 for 2025–26 vs $488,937 for 2024–25 (derived sums of the lines on the two USI summaries). Budgeted insurance line: $630,000 (2024), $600,000 (2025), $444,000 (2026); actual insurance expense $342,959 (2022), $463,858 incl. finance charges (2023), $506,536 (2024), $451,671 (2025). The audits disclose that an affiliate of the Developer provided the insurance services (approx. $447,129 in 2023, $411,807 in 2024, $348,946 in 2025); the 2024 and 2025 figures equal the property-program premiums on the USI summaries. If casualty proceeds are insufficient the Association must first draw on the Reserve Fund for Replacements and then levy an assessment on all owners (Art. XXIV, pp.20–21). Art. XXIII says an owner's own contents/liability policy must waive subrogation and 'shall be obtained from the insurance company from which the ASSOCIATION obtains coverage against the same risk, liability or peril, if the ASSOCIATION has such coverage' (p.18). Hurricane Ian (Sept 2022) caused about $71,000 of common-area damage; the HOA bore the $25,000 deductible and still carries a $48,073 Hurricane Ian payable. A 2025 in-unit sprinkler incident cost the HOA a $25,000 deductible booked as other expense. The Master Deed requires the Association to carry casualty insurance at full replacement value on units and common elements (Art. XXIV) and lets owners buy their own contents/liability coverage (Art. XXIII); HO-6 coverage was a 2023 meeting topic.

Wind deductible2025–26 term: $25,000 Wind/Hail, $25,000 All Other Perils, $25,000 Water Damage, $50,000 Earthquake, $10,000 Equipment Breakdown. 2024–25 term: $50,000 All Perils except $25,000 Named Storm, $50,000 Earthquake, $50,000 Flood (parking garage).

FloodNFIP Residential Condominium Building Association Policy through Homesite Insurance Company: building coverage $20,250,000 (replacement cost value), $25,000 deductible, no contents, flood zone AE, slab on grade, first floor height 2.9 ft by elevation certificate, 0 prior NFIP claims, 129 units, 20 floors, construction date 01/01/2002; total annual premium $16,625 (adjusted $16,635) for 05/31/2023–05/31/2024 after a Community Rating System reduction; the broker summaries show the same $16,625 premium and $20,250,000 limit for the 05/31/2024–25 and 05/31/2025–26 terms. The commercial property policy covers flood for the parking garage only.

DelinquencyHomeowner receivables $33,076 gross less a $21,148 allowance = $11,928 net at 12/31/2025 (vs $13,390 gross / $3,000 allowance at 12/31/2024 and $17,413 / $7,000 at 12/31/2023; $32,273 gross at 9/30/2023). Net bad debt expense $18,149 in 2025 (a $3,942 recovery in 2024; $7,064 expense in 2023; $15,775 recovery in 2022). Legal fees $5,000 in 2025 vs $750 budget. Hotel receivable $3,504. Policy: retain counsel and lien units 90+ days delinquent; a monthly installment is delinquent on the 15th; $25 late fee after 30 days, 18% interest, acceleration, foreclosure and receivership. Audits each year say legal actions are limited to delinquent-assessment collection and covenant compliance and are not material.

What the documents say (38)

“4001 - Regular Assessments 1,647,866.00”2026 Profit & Loss Budget Overview, page 1

“4007 - Insurance Special Assessment 444,000.00”2026 Profit & Loss Budget Overview, page 1

“Total Income 2,105,866.00”2026 Profit & Loss Budget Overview, page 1

“5440 - Capital Improvement Expense 456,000.00”2026 Profit & Loss Budget Overview, page 2

“5473 - Reserve Contribution 66,040.00”2026 Profit & Loss Budget Overview, page 2

“4001 - Regular Assessments 1,569,396.00”Annual Meeting Packet 2025 (2025 Profit & Loss Budget Overview), page 20

“4007 - Insurance Special Assessment 600,000.00”Annual Meeting Packet 2025 (2025 Profit & Loss Budget Overview), page 20

“5473 - Reserve Contribution 171,487.00”Annual Meeting Packet 2025 (2025 Profit & Loss Budget Overview), page 21

“4001 · Regular Assessments 1,494,663.21”2024 Profit & Loss Budget Overview, page 1

“4007 · Insurance Special Assessment 630,000.00”2024 Profit & Loss Budget Overview, page 1

“5473 - Reserve Contribution 0.00 171,487.00 (171,487.00)”Annual Meeting Packet 2026 (2025 Profit & Loss Budget vs. Actual), page 12

“Accumulated net reserve fund balances, which aggregate $793,646 at December 31, 2025 and $530,045 at December 31, 2024 are presented on the accompanying balance sheets as a contract liability (assessments received in advance – reserve fund) and are held in separate accounts and generally not available for operating purposes. However, these funds may be used, as needed, for any Association purpose at the discretion of the Board of Directors.”Annual Meeting Packet 2026 (audited financial statements, note 7), page 42

“Regular monthly assessments to residential unit owners ranged from $692 to $1,429 in 2025 and from $659 to $1,361 in 2024. Regular monthly assessments to commercial unit owners ranged from $458 to $14,657 in 2025 and from $436 to $13,959 in 2024.”Annual Meeting Packet 2026 (audited financial statements, note 10), page 43

“Insurance assessments are not included in the Association's regular assessments by design.”Annual Meeting Packet 2026 (audited financial statements, note 11), page 43

“At December 31, 2025 and 2024, the Association recognizes an allowance for doubtful accounts of $21,148 and $3,000, respectively, which has been netted against assessments receivable, as presented on the balance sheet. For the years ended December 31, 2025 and 2024, the Association recognizes net bad debt expense / (recoveries) of $18,149 and ($3,942), respectively.”Annual Meeting Packet 2026 (audited financial statements, note 10), page 43

“Ending fund balances $ (35,795) $ - $ (35,795) $ 5,829”Annual Meeting Packet 2026 (audited Statements of Revenues and Expenses and Changes in Fund Balances), page 38

“Regular assessments $ 1,081,341 $ 487,984 $ 1,569,325 $ 1,494,598”Annual Meeting Packet 2026 (audited statements, Operating Fund / Reserve Fund columns), page 37

“Management has omitted supplementary information on future major repairs and replacements that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements.”Annual Meeting Packet 2026 (Independent Auditor's Report), page 35

“During a prior year, the Association's Board of Directors' engaged a contractor to perform a major repair and replacement study. The study, which is available to the membership upon request and not presented with the audit, addressed the Association's reserve program requirements related to the estimated remaining useful lives and replacement costs of the common property components.”Annual Meeting Packet 2026 (audited financial statements, note 7), page 42

“An affiliate of the Developer provided insurance services for the Association's insurance program. During the years ended December 31, 2025 and 2024, the amounts incurred by the Association for the insurance services provided by the affiliate of the Developer amounted to approximately $348,946 and $411,807, respectively.”Annual Meeting Packet 2026 (audited financial statements, note 8), page 42

“05/31/25 05/31/26 $348,946 $20,250,000 per occurrence , per schedule.”USI Insurance Services coverage summary dated July 21, 2025, page 1

“Deductibles : $25,000 All Other Perils $25,000 Wind/Hail $25,000 Water Damage $50,000 Earthquake $10,000 Equipment Breakdown”USI Insurance Services coverage summary dated July 21, 2025, page 1

“05/31/24 05/31/25 $411,807 $20,250,000 per occurrence , per schedule.”USI Insurance Services coverage summary (undated, 2024–25 term), page 1

“Deductibles : $50,000 All Perils except: $25,000 Named Storm $50,000 Earthquake. $50,000 Flood (Parking Garage)”USI Insurance Services coverage summary (undated, 2024–25 term), page 1

“TOTAL ANNUAL PREMIUM: $16,625.00”NFIP Flood Insurance Policy Declarations 2023–24, page 1

“NUMBER OF UNITS: 129 UNITS. DATE OF CONSTRUCTION: 01/01/2002”NFIP Flood Insurance Policy Declarations 2023–24, page 1

“2200 - Insurance Premium Financing 90,921.19 0.00 90,921.19”Balance Sheet as of September 30, 2023, page 1

“The Association was impacted by Hurricane Ian with damage and destruction to the common areas of approximately $71,000. For the year ended December 31, 2022 the Association recognizes net Hurricane Ian expense of $25,000, which is the deductible amount of the insurance policy.”Annual Meeting Packet 2024 (audited financial statements, note 12), page 35

“Upcoming projects and major planned expenditures include elevator modifications (~$500,000), pool re-plastering, replacement of hot water tanks, roof repairs, parking deck sealing, and structural assessments.”Annual Meeting Packet 2026 (February 21, 2025 minutes), page 7

“The association anticipates a slight net profit for the year, with liabilities for future capital projects such as elevator upgrades and roof replacements.”Annual Meeting Packet 2026 (February 21, 2025 minutes), page 7

“The assessment for insurance, is based on the statutory value or respective percentage of ownership as stipulated in the Master Deed.”Annual Meeting Packet 2025 (February 9, 2024 minutes), page 7

“Net Income 116,565.09 (3,825.00) 120,390.09”2024 Q1 Profit & Loss Budget vs. Actual, page 2

“5910 - Unit [number omitted] Sprink 06/27/225 Ded 25,000.00 0.00 25,000.00”Annual Meeting Packet 2026 (2025 Profit & Loss Budget vs. Actual), page 12

“At December 31, 2025 and 2024, the Association's cash balances at one (1) financial institution exceeded the insured limit by approximately $617,000 and $487,000, respectively.”Annual Meeting Packet 2026 (audited financial statements, note 4), page 41

“Capital improvements - 241,642 241,642 416,415”Annual Meeting Packet 2026 (audited statements, Operating Fund / Reserve Fund columns), page 38

“FASB ACS 606 - (263,601) (263,601) (104,767)”Annual Meeting Packet 2026 (audited statements, Operating Fund / Reserve Fund columns), page 37

“The monies to be deposited by the ASSOCIATION with the Insurance Trustee, in said latter event, may be paid by the ASSOCIATION out of its Reserve Fund for Replacements, and if the amount in such Reserve Fund for Replacements is not sufficient, then the ASSOCIATION shall levy and collect an assessment against all OWNERS and their UNITS in an amount which shall provide the funds required to pay for said repair, replacement or reconstruction.”Master Deed, Article XXIV, pages 20–21

“upon the initial sale of each UNIT by the GRANTOR or resale by a Developer, each OWNER purchasing such UNIT from the GRANTOR or resale by a Developer shall pay over to the ASSOCIATION an amount equal to twice the amount of the regular, monthly assessment applicable to such UNIT, which shall not be a prepaid assessment, but shall constitute a separate payment to provide initial operating funds.”Master Deed, Article XXVII.C, page 23

Who's really in charge?

Red flag

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.

The developer retains board-majority appointment and veto rights until as late as April 1, 2030 (confirmed in the FY2025 audit, with only two seats put to owner votes), a perpetual right of first refusal on every resale, exclusive commercial/front-desk/advertising rights for its commercial unit, and places the HOA's insurance through its own affiliate.

StructureOne association

Commercial unitYes, with its own deed rights

On-site operatorVacasa (on-site rental program/general manager per 2024–2025 minutes and the 'Vacasa IT Supervision' budget line); HOA managed by Resort Association Management, Inc. (RAM); developer/Grantor is Carolinian, LLC, managed by Strand Capital Partners, LLC

BoardThree to five directors. During Class II (developer) control the Grantor selects the directors; at the first annual meeting after Class II control ends the board becomes five owner-elected members with staggered terms (initially 3/3/2/2/1 years, then two-year terms). Directors must be owners except Grantor designees. Removal with or without cause by a majority of the membership. In practice the 2023, 2024 and 2025 annual meetings seated a five-member board, only two seats were put to an owner vote in 2023 and again in 2025 ('Two positions were available on the board as per the Master Deed'; the February 9, 2024 minutes record no election at all), and two of the three initial directors named in the 2004 By-Laws still sit on the five-member board; a representative of Strand Capital (the developer's manager) attended the 2024 and 2025 annual meetings. The By-Laws also provide that one year and 90 days after their adoption the non-Grantor members elect one at-large director (board of four) who cannot be removed by the Class II member alone (By-Laws Art. III §6(a), pp.56-57). Quorum 51%; 2023 turnout 63.2%, 2024 65.23%, 2025 63.43%. Officers (President, VP, Secretary, Treasurer) elected by the board; management contracts limited to three years; the Grantor or an affiliate may serve as managing agent.

Developer rightsGrantor is Carolinian, LLC (managed by Strand Capital Partners, LLC), successors and assigns. (1) Board control: so long as it owns a unit or has not terminated Class II membership, it may designate and remove a majority of directors, holds four votes per unit, and holds a veto over all board/committee actions (exercisable within 10 days of a meeting); this power ends no later than April 1, 2030, and the FY2025 audit confirms the Grantor 'maintains the right to appoint members of the Board of Directors'. Grantor representatives need not recuse on contracts between the Grantor and the Association. (2) Right of first refusal (Art. XXXIX): held by the Grantor, its successors and assigns, with no stated expiration — it runs with the land and can only be amended with the Grantor's written consent. How it works: an owner who receives a bona fide offer must deliver written notice with an executed copy of the offer, its terms and the buyer's name to the Association's principal office or by registered/certified mail to the Grantor; the Grantor then has 10 days to elect to buy the unit on the same terms and conditions; declining once is not a waiver for later offers; it does not apply to Grantor transfers, commercial units, mortgages, foreclosures/deeds in lieu, co-tenant transfers, or transfers by will, trust or intestacy; the Grantor issues a compliance/waiver certificate on demand (fee up to $50, free to mortgagees), and the right is conclusively deemed waived if such a certificate issues or 90 days pass after a recorded transfer without the Grantor suing. (3) Phases: may add Phases II–IV (up to 250 residential + 5 commercial units each) by unilateral amendment until April 1, 2030, with construction easements over all common elements, may submit future-phase units to timeshare, and may relocate parking or temporarily close pools/parking during construction. (4) Easements: may grant third parties (it stated an intent to build a nearby condominium or timeshare building) easements over the pools, lazy river, parking, walkways, elevators, lobbies, restrooms and trash compactors, with cost-sharing billed through the HOA; owners grant the board an irrevocable power of attorney to sign such easements. (5) Exclusive signage/advertising and commercial-activity rights on common elements, utility/telecom/cell-tower easements (appurtenant to C-2), ownership of the telephone switchboard, sales-office use of units, and the right to correct the deed unilaterally. (6) Any rule that diminishes commercial-unit or Grantor rights is not binding without Grantor consent; Art. XXII (maintenance) and the commercial-activity restriction cannot be amended without Grantor consent.

Commercial-unit rightsFive commercial units may be used for any legal commercial purpose including general rentals, management, offices, shops, restaurant, lounge, game room, health spa or night club. Only the C-2 owner may conduct commercial activity on common elements (food, beverage, retail in vending areas and the pool-deck limited common area), use the maids closets, control movable signs, and hold the exclusive advertising easement over corridors, elevators, exterior and garage plus a roof easement for antennas/satellite/cell equipment leasable to third parties. Commercial unit owners may alter their units without board consent, recover attorney's fees if they win a suit over the commercial restrictions, and are not bound by HOA rules affecting their rights unless the Grantor consents. The lobby/check-in (C-2), hotel building (C-1), hotel elevators/hallways (C-3), maids/vending areas (C-4) and breakfast room (C-5) are all commercial property. Commercial units pay 14.99% of assessments (C-1 alone 11.2072%); the HOA leases the exercise room ($4,400/yr) and carries a hotel receivable.

VotesClass I owners: one vote per unit weighted by percentage interest (0.5288% to 1.0927% residential; up to 11.2072% for C-1); co-owners must designate one voting member. Class II Grantor: four votes per unit owned, until Class II terminates (no later than April 1, 2030). Quorum 51% in person or by proxy; 'majority' means more than 50% of total percentage interest; proxies allowed (the 2026 proxy names the board president as default proxy and stays valid six months if quorum fails); special meetings on petition of 5% of votes; board may borrow for repairs or shortfalls without a member vote, but borrowing over 5% of budgeted expenses for new amenities needs a member majority.

Changing the deedMaster Deed: 67% of the undivided interest in the common elements, proposed by a board majority or owners holding 25%, voted at a special meeting called 20–60 days after the proposal, recorded within 30 days. Exceptions: changes to percentage interests or assessment basis need all owners and mortgagees; changes to Grantor rights need the Grantor's written consent; changes to commercial-unit rights need the Grantor and all commercial unit owners; the commercial-activity restriction (Art. XIV) needs Grantor consent plus a unanimous owner vote; Art. XXII needs Grantor consent. Grantor may unilaterally amend to add phases (to April 1, 2030) or fix scrivener's errors. By-Laws: 67% of total votes including 67% of non-Grantor votes, and no provision reserving a Grantor right may be amended without its consent. Termination of the regime: unanimous owners plus all mortgagees.

Disputes or lawsuitsNo pending lawsuit is disclosed. Audits for FY2023–FY2025 state the Association is party only to routine delinquent-assessment and covenant-compliance actions that are not material. Legal fees were $0 (2023), $0 (2024) and $5,000 vs $750 budget (2025). Owners, the Association and the Grantor waive jury trial in any dispute under the Master Deed (Art. XXXVII). Related-party disclosures: the Grantor's board-appointment right and a Developer affiliate providing the insurance program. Hurricane Ian claim (2022): ~$71,000 damage, $25,000 deductible, $46,243 insurance receivable collected in 2023, $48,073 payable still carried at 12/31/2025.

What the documents say (22)

“Note: This Master Deed reserves a right of first refusal in favor of GRANTOR herein.”Master Deed, cover page, page 1

“For a period of ten (10) days following such delivery or mailing of the aforesaid notice to GRANTOR, GRANTOR shall have the right to purchase the subject UNIT upon the same terms and conditions as set forth in the offer therefor.”Master Deed, Article XXXIX.A, page 34

“The failure or refusal by GRANTOR to exercise the right of first refusal shall not constitute or be deemed a waiver of such right in the event the Owner of any UNIT receives any subsequent bona fide offer from the same or a different party.”Master Deed, Article XXXIX.A, page 34

“(b) a period of ninety (90) days has passed following the record transfer of title to any unit in violation of the requirements of this Article without the filing of any suit or other judicial proceeding by GRANTOR to set aside such transfer or to otherwise enforce the rights of GRANTOR under this Article.”Master Deed, Article XXXIX.D, page 35

“A charge not to exceed Fifty ($50.00) Dollars may be levied in advance by GRANTOR for each certificate so delivered, except that no charge shall be levied against any mortgagee of any UNIT who requests such a certificate.”Master Deed, Article XXXIX.C, page 35

“then GRANTOR, its successors and assigns, shall have the right to designate and select a majority of the persons who shall serve as MEMBERS of each Board of Directors of the ASSOCIATION.”Master Deed, Article XXXII, page 30

“The power of the GRANTOR, its successors or assigns, to designate Directors as above referred to shall terminate no later than the 1st day of April, 2030.”Master Deed, Article XXXII, page 31

“Any representative of GRANTOR serving on the Board of Directors of the ASSOCIATION shall not be required to disqualify himself upon any vote from any management contract or other matter between GRANTOR and the ASSOCIATION where the GRANTOR may have a pecuniary or other interest.”Master Deed, Article XXXII, page 31

“So long as the Class "II" membership exists, the Class "II" member shall have a veto power over all actions of the Board and any committee, as is more fully provided in this Section.”Master Deed, Exhibit E By-Laws, By-Laws Article III, Section 3, page 55

“The Class II member shall be entitled to four (4) votes for each UNIT in which it holds the interest required for membership by Article XIII in the Master Deed provided that the Class II membership shall continue only so long as GRANTOR, its successors or assigns of the rights of GRANTOR as Class II member, is the Owner of one (1) or more UNITS in the entire Condominium.”Master Deed, Exhibit E By-Laws, By-Laws Article II, Section 2, page 53

“In accordance with the Master Deed, the Grantor maintains the right to appoint members of the Board of Directors.”Annual Meeting Packet 2026 (audited financial statements, note 8), page 42

“Two positions were available on the board as per the Master Deed.”Annual Meeting Packet 2026 (February 21, 2025 minutes), page 8

“At such meeting, the amendment or amendments proposed must be approved by an affirmative vote of MEMBERS owning at least sixty-seven (67%) percent of the undivided interest in the COMMON ELEMENTS of the Condominium in order for such amendment or amendments to become effective.”Master Deed, Article XXIX, page 28

“ii) any alteration, amendment or modification of the rights and privileges granted and reserved hereunder in favor of GRANTOR, which said rights and privileges granted and reserved unto the said GRANTOR shall only be altered, amended or modified with the express written consent of the said GRANTOR, its successors and assigns”Master Deed, Article XXIX, page 27

“The GRANTOR may elect to exercise this right or option as to Phases II through IV, or any one or more of them, no later than April 1, 2030.”Master Deed, Article III, page 5

“Specifically, GRANTOR intends to construct a condominium or timeshare building upon property located near Phase I and which is subject to the easement for parking described in Exhibit A hereto, which building may or may not be submitted as an additional Phase.”Master Deed, Article VI, page 8

“Furthermore, a perpetual, appurtenant, exclusive easement for advertising is hereby reserved over the corridors, passageways, elevators, building exterior, parking garage and other COMMON ELEMENTS, which easement is a LIMITED COMMON ELEMENT for the exclusive use and benefit of COMMERCIAL UNIT C-2 and the owner thereof.”Master Deed, Exhibit B, Exhibit B, page 39

“Grantor hereby declares, on behalf of itself, the ASSOCIATION, and any OWNER of a UNIT, that any and all right to trial by jury shall be waived by Grantor, the ASSOCIATION, or any OWNER of a UNIT in any dispute, proceeding, case or controversy arising under or related to the within Master Deed.”Master Deed, Article XXXVII, page 33

“The GRANTOR, or an affiliate of the GRANTOR, may be employed as managing agent or manager.”Master Deed, Exhibit E By-Laws, By-Laws Article III, Section 19, page 60

“The Association is a party to various legal actions normally associated with homeowner associations, such as the collection of delinquent assessments and covenant compliance matters, the aggregate effect of which, in management's opinion, would not be material to the future financial condition of the Association.”Annual Meeting Packet 2025 (audited financial statements, note 5), page 35

“making available to any prospective purchaser of a UNIT, any Owner of a UNIT, any first Mortgagee, and the holders, insurers, and guarantors of a first Mortgage on any UNIT, current copies of the Master Deed, the Articles of Incorporation, the By-Laws, rules governing the UNIT, and all other books, records, and financial statements of the ASSOCIATION;”Master Deed, Exhibit E By-Laws, By-Laws Article III, Section 18(m), page 60

“The Director so elected shall not be subject to removal by the Class "II" Member acting alone and shall be elected for a term of two (2) years or until the happening of the event described in subsection (b) below, whichever is shorter.”Master Deed, Exhibit E By-Laws, By-Laws Article III, Section 6(a), pages 56–57

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

Short-term renting is expressly preserved in the deed — any owner may rent or lease the unit, no minimum stay is stated, and nothing requires use of the on-site program (Master Deed, Art. XIV pp.12–13).
Outside housekeepers and off-site managers are contemplated: independent contractors may clean daily or weekly and 'rental managers and their agents' are recognized as authorized entrants (Master Deed, Art. XIV p.13; Art. XVII p.14).
The HOA itself is barred from running a rental program, so there is no association-sponsored program steering owners (Master Deed Exhibit E, By-Laws Art. I §4 p.52).
Owners' guests, licensees and invitees share the same perpetual easement over all common elements — pools, lazy river, elevators, hallways — and no document reserves amenities to program guests (Master Deed, Art. VII p.9).
Dues bundle bulk cable TV, internet and telephone, water/sewer, natural gas, trash, interior pest control and a bed-bug program, hallway/corridor care and security (2026 Profit & Loss Budget Overview, pp.1–2).
Insurance costs are falling: the property premium dropped from $411,807 to $348,946 (-15%) at the 5/31/2025 renewal and the budgeted insurance assessment fell from $600,000 (2025) to $444,000 (2026) (USI coverage summary dated July 21, 2025 p.1; 2026 Budget p.1).
The reserve fund has grown to $793,646 at 12/31/2025 (from $425,278 at 12/31/2023), is held in separate accounts, and the Association gets audited every year with clean opinions (Annual Meeting Packet 2024 p.34; Annual Meeting Packet 2026 pp.34, 42).
Regular assessments have risen a steady 5.0% a year from 2023 to 2026 rather than in jumps, and the 2026 total budget is 3.6% lower than 2025 (Annual Meeting Packet 2024 p.11 budget column; 2024 Budget p.1; Annual Meeting Packet 2025 p.20; 2026 Budget p.1).
Active capital program: garage security cameras, pool restroom upgrades, new outdoor spa, balcony door rollers, parking garage coating, handrails and elevator landing enclosures were completed or under way in 2024–2025 (Annual Meeting Packet 2025 p.7; Annual Meeting Packet 2026 p.7).
Delinquency is small relative to a $2.1M budget — net homeowner receivables were $11,928 at 12/31/2025 — and the Association liens units at 90 days (Annual Meeting Packet 2026, pp.10, 41).
No timeshare conversion of existing units is allowed, protecting the residential character of the tower (Master Deed, Art. XIV p.12).
Reserves are funded more than the budget's 'Reserve Contribution' line suggests: the audits allocate a slice of regular assessments to a separate reserve fund ($436,717 in 2023, $503,334 in 2024, $487,984 in 2025), capital projects are paid from it, and the audited reserve balance rose from $425,278 to $793,646 in two years; the 2026 budget sends $456,000 of capital improvement expense plus $66,040 of reserve contribution — about $522,000 or 25% of the budget (derived) — to capital and reserves (Annual Meeting Packet 2024 p.29; Annual Meeting Packet 2025 p.31; Annual Meeting Packet 2026 pp.37, 42; 2026 Budget p.2).
Strong transparency rights for a buyer: the board must give any prospective purchaser current copies of the Master Deed, Articles, By-Laws, rules, books, records and financial statements; board meetings are open to owners; quarterly financials with a delinquency report and an audited annual report within 120 days are required; members may inspect and copy the books and minutes (Master Deed Exhibit E, By-Laws Art. III §§16, 18(m), 20 pp.58–61; Art. VI §4 p.65).
Even when fining or suspending privileges the board may not block ingress or egress to a unit, so a guest cannot be locked out over a violation (Master Deed Exhibit E, By-Laws Art. III §23 p.62).

Watch-outs

Developer control is still live: the Grantor may designate a majority of the board and veto any board action until as late as April 1, 2030; the FY2025 audit confirms it 'maintains the right to appoint members of the Board', only two seats were put to an owner vote in 2023 and 2025 (the 2024 minutes record no election), and two of the three initial directors named in the 2004 By-Laws still sit on the five-member board (Master Deed Art. XXXII pp.30–31; By-Laws Art. III §§2–3 pp.55–56; Meeting Minutes 2023-02-10 p.3; Annual Meeting Packet 2025 pp.6–7; Annual Meeting Packet 2026 pp.8, 42).
Perpetual right of first refusal: on any resale the owner must send the developer the executed offer and buyer's name, the developer has 10 days to buy on the same terms, no expiration date is stated, it can only be amended with the developer's consent, and the only safe harbors are a developer compliance/waiver certificate (fee up to $50, free to mortgagees) or 90 days passing after a recorded transfer without the developer suing — expect friction and delay on exit (Master Deed Art. XXXIX pp.34–35; Art. XXIX p.27).
No on-site key exchange, front desk or rental office for independent owners: the lobby/check-in is Commercial Unit C-2 and no other owner may run key pick-up/drop-off or a front desk anywhere in the building, so self-managers need keyless entry and fully remote check-in (Master Deed Art. XIV p.12; Exhibit B p.39).
The developer reserved the right to regulate how owners and managers advertise (use of the resort name and photos), and the commercial-activity restriction that contains the rental limits can only change with developer consent plus a unanimous owner vote (Master Deed Art. VII p.9; Art. XIV p.13).
Insurance is billed as a separate annual 'Insurance Special Assessment' on top of dues — $630,000 (2024), $600,000 (2025), $444,000 (2026) allocated by percentage interest, roughly $196–$404 a month per residential unit in 2026 (derived) — and premiums had to be financed in 2023 (2026 Budget p.1; Annual Meeting Packet 2026 p.43 note 11; Balance Sheet 9/30/2023 p.1).
$25,000 per-occurrence deductibles for wind/hail, water damage and all other perils plus a $25,000 flood deductible, and the deed pushes deductible shortfalls on in-unit repairs to the owner — a 2025 in-unit sprinkler incident cost $25,000; robust HO-6 with loss-assessment coverage is essential (USI coverage summary dated July 21, 2025 p.1; Master Deed Art. XXI pp.16–17; Annual Meeting Packet 2026 p.12).
The operating fund is in deficit: net losses of $21,868 (2024) and $41,624 (2025) left the operating fund balance at ($35,795) at 12/31/2025; the management P&L shows $0 against the $171,487 'Reserve Contribution' line budgeted for 2025, although the audited reserve fund still grew by $263,601 that year because $487,984 of regular assessments were allocated to it and only $241,642 was spent on capital projects (Annual Meeting Packet 2026 pp.12, 37–38, 42).
The line labelled 'Reserve Contribution' is only $66,040 (3.1% of the 2026 budget); a further $456,000 (21.7%) is budgeted as Capital Improvement Expense and is largely spent in-year, so the $793,646 reserve balance must cover about $500,000 of elevator modifications plus roof repairs, pool re-plastering, hot-water tanks, parking-deck sealing and structural assessments; the auditor flags every year that management omitted the required future-repairs disclosure, and the reserve study was not supplied (2026 Budget p.2; Annual Meeting Packet 2026 pp.7, 35, 42).
Collections deteriorated in 2025: bad-debt expense of $18,149, the doubtful-accounts allowance up from $3,000 to $21,148, and legal fees of $5,000 against a $750 budget (Annual Meeting Packet 2026 pp.11, 43).
Related-party insurance: 'An affiliate of the Developer provided insurance services for the Association's insurance program' (about $349k–$447k a year) and developer board members need not recuse on contracts between the developer and the HOA (Annual Meeting Packet 2026 p.42 note 8; Master Deed Art. XXXII p.31).
The developer may grant outsiders (it stated an intent to build a nearby condominium or timeshare building) easements to use the pools, lazy river, parking, elevators and lobbies, and may add up to three more phases (up to 750 residential and 15 commercial units) until April 1, 2030, diluting percentage interests and crowding amenities (Master Deed Art. VI p.8; Art. III pp.3–5).
Parking is a non-exclusive easement over a garage the regime does not own: the garage owner can set the rules and reserve spaces for itself, the HOA pays $15,000 a year in rent plus upkeep and insurance, and vendor parking, hang tags and towing were unresolved issues in 2025 (Master Deed Exhibit A pp.36–37; 2026 Budget p.1; Annual Meeting Packet 2026 p.7).
The commercial unit owner holds exclusive rights to food/beverage/retail on the pool deck and vending areas, the maids closets, an exclusive advertising easement over corridors/elevators/exterior, a roof cell/antenna easement and the phone switchboard, and HOA rules that touch those rights are not binding without developer consent (Master Deed Art. XIV pp.12–13; Exhibit B p.39; Art. XV p.13).
Absolute no-pet rule (service animals only) rules out pet-friendly listings (Master Deed Art. XV p.13; Pet Policy p.1).
Owners waive jury trial in any Master Deed dispute, guest fines fall back on the owner if the guest does not pay, and late dues carry 18% interest, acceleration, foreclosure and receivership (Master Deed Art. XXXVII p.33; By-Laws Art. III §23 p.62; Art. XXVII pp.24–25).
The property policy limit is $20,250,000 per occurrence — identical to the NFIP building replacement-cost value — for a 20-story, 129-unit tower plus a 10-story hotel building; adequacy of limits and co-insurance are not addressed in the documents (USI coverage summary dated July 21, 2025 p.1; NFIP declarations p.1).
Mandatory monthly in-unit pest-control entry, white-backed window treatments, building and gate codes that were changed in 2024, and a key deposit on request add operating friction for a remote owner (Master Deed Art. XVIII p.14; Art. XIX p.15; Art. XVII p.14; Annual Meeting Packet 2025 p.7).
The 2026 meeting notice says the proxy may be used for 'consideration of the Master Deed and By-Laws amendments' but no amendment text was supplied — ask what was proposed (Annual Meeting Notice 2026-01-20 p.3).
Loss-assessment exposure is written into the deed: if casualty proceeds fall short the Association draws on the replacement reserve and then levies an assessment on all owners, and the board (as Insurance Trustee) settles claims for everyone (Master Deed Art. XXIV pp.18–21).
Your own HO-6 is constrained: the deed says owner contents/liability coverage must waive subrogation and 'shall be obtained from the insurance company from which the ASSOCIATION obtains coverage against the same risk' where the Association carries that risk — ask the manager how this is enforced before binding a policy (Master Deed Art. XXIII p.18).
Oceanfront rebuild risk: the deed discloses that part or all of the project is or may be seaward of the state coastal setback line and that the Coastal Control Acts may restrict the right to build, repair or rebuild after a loss (Master Deed Art. I pp.2–3).

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, 2026

Unit type	Per month	Per year
Residential unit, 0.5288% interest (statutory value $151) — 2025 regular assessment low end as printed in audit note 10; excludes the separate insurance assessment	$692	$8,304
Residential unit, 1.0927% interest (statutory value $312) — 2025 regular assessment high end as printed in audit note 10; excludes the separate insurance assessment	$1,429	$17,148
Residential unit, 0.5288% interest — 2026 regular assessment derived from the 2026 budget ($1,647,866 x 0.5288%); the 2026 insurance special assessment adds about $196/mo ($2,348/yr) derived the same way	$726	$8,714
Residential unit, 0.8300% interest (statutory value $237) — 2026 regular assessment derived ($1,647,866 x 0.83%); insurance special assessment adds about $307/mo ($3,685/yr) derived	$1,140	$13,677
Residential unit, 1.0927% interest — 2026 regular assessment derived ($1,647,866 x 1.0927%); insurance special assessment adds about $404/mo ($4,852/yr) derived	$1,500	$18,006
Commercial units (0.3502% to 11.2072% interest) — 2025 regular assessment range as printed in audit note 10	$458	$5,496
Commercial Unit C-1 (11.2072% interest, 10-story hotel) — 2025 regular assessment high end as printed in audit note 10	$14,657	$175,884

What the dues cover

Bulk cable television ($42,000), internet access ($48,132 IPacket + $20,844 HTC) and telephone ($28,700 IPacket) for the buildingCity water & sewer ($63,000), natural gas ($50,000), trash removal ($30,000)Electric power ($125,000) — whether in-unit electricity is included or separately metered is unstatedInterior pest control ($6,200) with monthly in-unit spraying rights, plus a bed-bug program ($8,500)Hallway & corridor care ($167,000), pool maintenance and chemicals, elevator service contract, generator maintenance, fire protection, security ($91,000 + $6,000)Parking lot attendant, parking lot cleaning, parking deck sweeping and $15,000 parking deck rentExercise room lease ($4,400)Master property, flood, liability, D&O and pollution insurance — but funded through the separate annual Insurance Special Assessment, not regular duesProperty management (Resort Association Management) $53,750 plus inspections, preventative maintenance and capital-project management

Where the budget goes

5440 Capital Improvement Expense$456,000 · 22%

5226 Insurance (funded by the Insurance Special Assessment)$444,000 · 21%

5090 Hallway & Corridor Care (bulk services contract)$167,000 · 8%

5035 General Maintenance-Uncontracted$127,000 · 6%

5310 Electric Power$125,000 · 6%

5420 Security$91,000 · 4%

5473 Reserve Contribution$66,040 · 3%

5320 City Water & Sewer$63,000 · 3%

The figures, in the documents' words (38)

“4001 - Regular Assessments 1,647,866.00”2026 Profit & Loss Budget Overview, page 1

“4007 - Insurance Special Assessment 444,000.00”2026 Profit & Loss Budget Overview, page 1

“Total Income 2,105,866.00”2026 Profit & Loss Budget Overview, page 1

“5440 - Capital Improvement Expense 456,000.00”2026 Profit & Loss Budget Overview, page 2

“5473 - Reserve Contribution 66,040.00”2026 Profit & Loss Budget Overview, page 2

“4001 - Regular Assessments 1,569,396.00”Annual Meeting Packet 2025 (2025 Profit & Loss Budget Overview), page 20

“4007 - Insurance Special Assessment 600,000.00”Annual Meeting Packet 2025 (2025 Profit & Loss Budget Overview), page 20

“5473 - Reserve Contribution 171,487.00”Annual Meeting Packet 2025 (2025 Profit & Loss Budget Overview), page 21

“4001 · Regular Assessments 1,494,663.21”2024 Profit & Loss Budget Overview, page 1

“4007 · Insurance Special Assessment 630,000.00”2024 Profit & Loss Budget Overview, page 1

“5473 - Reserve Contribution 0.00 171,487.00 (171,487.00)”Annual Meeting Packet 2026 (2025 Profit & Loss Budget vs. Actual), page 12

“Accumulated net reserve fund balances, which aggregate $793,646 at December 31, 2025 and $530,045 at December 31, 2024 are presented on the accompanying balance sheets as a contract liability (assessments received in advance – reserve fund) and are held in separate accounts and generally not available for operating purposes. However, these funds may be used, as needed, for any Association purpose at the discretion of the Board of Directors.”Annual Meeting Packet 2026 (audited financial statements, note 7), page 42

“Regular monthly assessments to residential unit owners ranged from $692 to $1,429 in 2025 and from $659 to $1,361 in 2024. Regular monthly assessments to commercial unit owners ranged from $458 to $14,657 in 2025 and from $436 to $13,959 in 2024.”Annual Meeting Packet 2026 (audited financial statements, note 10), page 43

“Insurance assessments are not included in the Association's regular assessments by design.”Annual Meeting Packet 2026 (audited financial statements, note 11), page 43

“At December 31, 2025 and 2024, the Association recognizes an allowance for doubtful accounts of $21,148 and $3,000, respectively, which has been netted against assessments receivable, as presented on the balance sheet. For the years ended December 31, 2025 and 2024, the Association recognizes net bad debt expense / (recoveries) of $18,149 and ($3,942), respectively.”Annual Meeting Packet 2026 (audited financial statements, note 10), page 43

“Ending fund balances $ (35,795) $ - $ (35,795) $ 5,829”Annual Meeting Packet 2026 (audited Statements of Revenues and Expenses and Changes in Fund Balances), page 38

“Regular assessments $ 1,081,341 $ 487,984 $ 1,569,325 $ 1,494,598”Annual Meeting Packet 2026 (audited statements, Operating Fund / Reserve Fund columns), page 37

“Management has omitted supplementary information on future major repairs and replacements that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements.”Annual Meeting Packet 2026 (Independent Auditor's Report), page 35

“During a prior year, the Association's Board of Directors' engaged a contractor to perform a major repair and replacement study. The study, which is available to the membership upon request and not presented with the audit, addressed the Association's reserve program requirements related to the estimated remaining useful lives and replacement costs of the common property components.”Annual Meeting Packet 2026 (audited financial statements, note 7), page 42

“An affiliate of the Developer provided insurance services for the Association's insurance program. During the years ended December 31, 2025 and 2024, the amounts incurred by the Association for the insurance services provided by the affiliate of the Developer amounted to approximately $348,946 and $411,807, respectively.”Annual Meeting Packet 2026 (audited financial statements, note 8), page 42

“05/31/25 05/31/26 $348,946 $20,250,000 per occurrence , per schedule.”USI Insurance Services coverage summary dated July 21, 2025, page 1

“Deductibles : $25,000 All Other Perils $25,000 Wind/Hail $25,000 Water Damage $50,000 Earthquake $10,000 Equipment Breakdown”USI Insurance Services coverage summary dated July 21, 2025, page 1

“05/31/24 05/31/25 $411,807 $20,250,000 per occurrence , per schedule.”USI Insurance Services coverage summary (undated, 2024–25 term), page 1

“Deductibles : $50,000 All Perils except: $25,000 Named Storm $50,000 Earthquake. $50,000 Flood (Parking Garage)”USI Insurance Services coverage summary (undated, 2024–25 term), page 1

“TOTAL ANNUAL PREMIUM: $16,625.00”NFIP Flood Insurance Policy Declarations 2023–24, page 1

“NUMBER OF UNITS: 129 UNITS. DATE OF CONSTRUCTION: 01/01/2002”NFIP Flood Insurance Policy Declarations 2023–24, page 1

“2200 - Insurance Premium Financing 90,921.19 0.00 90,921.19”Balance Sheet as of September 30, 2023, page 1

“The Association was impacted by Hurricane Ian with damage and destruction to the common areas of approximately $71,000. For the year ended December 31, 2022 the Association recognizes net Hurricane Ian expense of $25,000, which is the deductible amount of the insurance policy.”Annual Meeting Packet 2024 (audited financial statements, note 12), page 35

“Upcoming projects and major planned expenditures include elevator modifications (~$500,000), pool re-plastering, replacement of hot water tanks, roof repairs, parking deck sealing, and structural assessments.”Annual Meeting Packet 2026 (February 21, 2025 minutes), page 7

“The association anticipates a slight net profit for the year, with liabilities for future capital projects such as elevator upgrades and roof replacements.”Annual Meeting Packet 2026 (February 21, 2025 minutes), page 7

“The assessment for insurance, is based on the statutory value or respective percentage of ownership as stipulated in the Master Deed.”Annual Meeting Packet 2025 (February 9, 2024 minutes), page 7

“Net Income 116,565.09 (3,825.00) 120,390.09”2024 Q1 Profit & Loss Budget vs. Actual, page 2

“5910 - Unit [number omitted] Sprink 06/27/225 Ded 25,000.00 0.00 25,000.00”Annual Meeting Packet 2026 (2025 Profit & Loss Budget vs. Actual), page 12

“At December 31, 2025 and 2024, the Association's cash balances at one (1) financial institution exceeded the insured limit by approximately $617,000 and $487,000, respectively.”Annual Meeting Packet 2026 (audited financial statements, note 4), page 41

“Capital improvements - 241,642 241,642 416,415”Annual Meeting Packet 2026 (audited statements, Operating Fund / Reserve Fund columns), page 38

“FASB ACS 606 - (263,601) (263,601) (104,767)”Annual Meeting Packet 2026 (audited statements, Operating Fund / Reserve Fund columns), page 37

“The monies to be deposited by the ASSOCIATION with the Insurance Trustee, in said latter event, may be paid by the ASSOCIATION out of its Reserve Fund for Replacements, and if the amount in such Reserve Fund for Replacements is not sufficient, then the ASSOCIATION shall levy and collect an assessment against all OWNERS and their UNITS in an amount which shall provide the funds required to pay for said repair, replacement or reconstruction.”Master Deed, Article XXIV, pages 20–21

“upon the initial sale of each UNIT by the GRANTOR or resale by a Developer, each OWNER purchasing such UNIT from the GRANTOR or resale by a Developer shall pay over to the ASSOCIATION an amount equal to twice the amount of the regular, monthly assessment applicable to such UNIT, which shall not be a prepaid assessment, but shall constitute a separate payment to provide initial operating funds.”Master Deed, Article XXVII.C, page 23

Carolinian Beach Resort.

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, 2026

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.

Carolinian Beach Resort.

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, 2026

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.