Reserves are funded at 28.8% of the 2025 budget with a reserve study, dues bundle electricity, utilities, the master policy and a master HO6, and 2025 dues were flat after a clean 2023 audit, but a $1.29 million six-year 7% loan assessment is being collected monthly on top of published dues, dues rose 17.43% in 2024 on a 30% insurance jump, insurance is 24-26% of the budget with the broker warning of more, liability cover sits below the deed's $3 million target, the building is in Flood Zone VE with $25,000 flood and wind deductibles plus a Lloyd's named-storm buy-down, the 2023 audit shows a small deficit, and a three-bedroom now costs about $1,869 a month (Booklet pp.7-14, 22-23; 2025 Budget; Master Deed 11.2; February 2026 answers).
2025 budget$2,964,033
Dues change+0.0% on the year
Reserves29% of budget
Reserve balance$835,748
Reserve studyOn file
Special assessments2024 $1,292,719.29 total 'Loan assessment - 6 year special assessment, 72 month loan @ 7%', collected monthly with dues: 1 Bedroom $61.84/month, $742.08/year, $4,452.48 total; 2 Bedroom $100.47/month, $1,205.64/year, $7,233.84 total; 3 Bedroom $123.65/month, $1,483.80/year, $8,902.80 total; Commercial Unit $4,676.50/month ($336,708 total); Reception $865.62/month ($62,324.64 total); Vending $34.01/month; Snack Bar $12.37/month. The yearly collections sum to about $215,453, which is the 'General Reserves Waterproofing' line carried in the 2024 and 2025 budgets, and the 2023 audit shows $15,307 of loan fees in the reserve fund. Billing caveat: the 2024 and 2025 budgets' 'Regular Assessments' line ($2,771,482) already equals total budgeted expenses including the $215,453 'General Reserves Waterproofing' line, and the published monthly dues ($904.27/$1,406.38/$1,715.45) are that line divided by percentage interest, so on the budget's face the loan share is inside the published dues; yet the June 2025 owner-reported three-bedroom figure of $1,839 equals $1,715.45 + $123.65 and the February 2026 management answer says the special assessment is 'added in with HOA payment', which indicates it is billed on top. Confirm the actual monthly bill with management. Debt service on a 72-month bank loan at 7% (the Loan Assessment page does not name the project; the matching budget line is 'General Reserves Waterproofing' and the February 2024 minutes discuss an approximately 18-month exterior painting and waterproofing project with loud work scheduled for April/May and other work June through October). The February 2026 management answers confirm 'Special assessment added in with HOA payment'; the June 2025 owner-supplied answers said 'No'.; 2024 17.43% increase in regular assessments ($2,341,388 to $2,771,482 budgeted; 1 Bedroom $775.88 to $904.27, 2 Bedroom $1,200.27 to $1,406.38, 3 Bedroom $1,461.82 to $1,715.45 per month) Not a special assessment but a step-up driven by Insurance Expense ($539,000 to $702,470 budget, +30%) and General Reserves ($637,042 to $852,495), described by the cover letter as 'primarily due to rising cost of utilities and additional funding for the capital reserve contribution'.
InsuranceProperty: Building $23,790,000 replacement cost, special form including earthquake, flood and wind/hail, term 01/08/2024-01/08/2025, carriers Landmark American, James River and Axis with Lloyd's buy-down policies, broker USI Insurance Services, 'Total Units: 140'. Liability: James River Insurance Company commercial general liability $1,000,000 each occurrence / $1,000,000 personal and advertising injury / $2,000,000 general aggregate / $2,000,000 products-completed operations, $50,000 damage to rented premises, medical expense excluded, 01/08/2024-01/08/2025; a second Continental Casualty Company policy with a $2,000,000 limit runs 06/21/2024-06/21/2025 (its line label is illegible on the scan); no umbrella or excess liability line is completed on the certificate. Master Deed 11.2 calls for a public liability policy with 'at least a One Million ($1,000,000) Dollar single person limit', 'at least a Three Million ($3,000,000) Dollar limit per occurrence, if reasonably available', and 'at least a Five Hundred Thousand ($500,000) Dollar minimum property damage limit', so the certificate's $1,000,000 per-occurrence limit is below the deed's if-available target (p.51). Master Deed 11.1 requires blanket special form, flood, wind and earthquake cover 'if reasonably available' at 100% replacement cost, lets the Board set deductibles and reserves for them, and makes each new owner prepay one year's share of premium (pp.50-51); 11.5 makes each owner buy contents and liability (HO6-type) cover and file a copy with the Council (p.52). The association also carries a master HO6 program billed inside dues ($43.36/$48.45/$59.35 per month by unit size; $81,157 budget line; $71,336 actual in 2023, $66,560 in 2022). Insurance Expense was $450,813 actual in 2022, $561,863 in 2023, $702,470 budgeted for 2024 and held flat for 2025 (+56% from 2022 actual to the 2024 budget); with master HO6 the 2025 total is $783,627 or 26.4% of the budget. The broker told the February 2024 annual meeting to 'expect an increase in premium in 2025'. Policy numbers withheld.
Wind deductibleNamed Storm deductible is 'Bought down with Lloyds Policy' (the underlying percentage is illegible in the OCR); All Other Wind/Hail $25,000; 'Wind Driven Participation $100,000'; base all-other-perils deductible $5,000; Earthquake $25,000; Master Deed 11.4 puts the deductible on the party who would be liable for the loss absent insurance (ACORD 27, Booklet p.22; Master Deed p.52)
FloodFlood included in the special-form program with a $25,000 deductible 'Bought down with Lloyds Policy'; Flood Zone VE; the certificate states the policy meets the definition of private flood insurance under 42 U.S.C. 4012a(b)(7) (Booklet p.22)
DelinquencyStrong collections: assessments receivable were $0 at December 31, 2023 (vs $7,226 at 12/31/2022); fines and late fees were $1,042 in 2023 and $1,713 in 2022; bad debt is budgeted at $1,000; 70% of the membership was represented at the February 2024 annual meeting. Remedies: $25 late fee after 30 days plus 18% interest (Master Deed 6.4; By-Laws 5.8), delinquent on the 15th for reporting (By-Laws 5.9.f.vi), lien superior to all but taxes and prior-recorded mortgages, foreclosure as a mortgage with receiver for rents, suspension of voting and facility use, and the Board may ultimately seek a judicial sale of a persistently defaulting owner's unit (Master Deed 9.4). The 2024 cover letter: dues due on the 1st, late on the 10th, late fines from $25 and administrative fines from $30 with interest. Audited results: 2023 total revenues $2,505,551 against expenses $2,518,965, a deficiency of $(13,414) (2022: a $42,529 surplus); fund balances fell from $918,493 to $905,079; the reserve fund spent $582,704 on building and common property repairs and replacements in 2023 ($637,848 in 2022) and its $835,748 of cash is carried against $828,409 of 'assessments received in advance-reserve fund' (contract liabilities), so the audit shows no reserve fund balance as such (Booklet pp.7-9).