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- 2011 Harborside II Maintenance Fees -...
2011 Harborside II Maintenance Fees - OVERBOARD
I am a Harborside at Atlantis Phase 2 Owner. Since 2004 our MF have risen from $1800 (I own a three bedroom lock off) to $3150. It is clear that the Directors of our Association are doing what is good for Starwood and Kerzner (developer). One director works for SW and the other works for Kerzner.
The following are several issues worth considering:
My view (after 8 years of ownership) is that the fractional ownerships are not what SVN is really selling...what they are selling is an HOA "trap"...they make a lot more money on HOA fees than selling TS.
Once someone is locked into a TS contract they'll use if for a few years and them try to sell...many did and the economy suffered in 2008-09. Concurrently the HOA fees rise to the point that the rental value is the same as the HOA fees, thus there is no equity in the unit...but the fractional owner can't "get out" unless they "sell"...consequently the owner is held hostage to an ownership, that if foreclosed upon, will drag their credit rating down.
The collective management fees for Harborside II now exceed $3.2 million a year. The total HOA fees are close to $20 million a year...$20 million a year to maintain a large apartment complex with people coming and going on a weekly basis. It is clearly outrageous.
As an example of the sheer audacity of these guys... the fees paid to Paradise Island Tourism Development Association at $52,475 are for a website owned by a third party marketing company. It does nothing except promote all Atlantis/Kerzner related properties and take reservations. Harborside is promoted among the other Atlantis properties, say 12% of the site. ...the company has no google ads (no costs), does not purchase any keywords.
So ...Who benefits by this gargantuan yearly fee for a simple website?
All the uncollected HOA fees, which are about $1 million, are charged back to us fractional owners. If a unit is foreclosed upon, when is the unit actually sold? No accounting for this...
but ...if a foreclosed unit is sold, are some of the proceeds used to make the HOA whole again for that fractional share's unpaid fees ..I think NOT. No accounting for any of this.
I'll bet SVN holds these foreclosed units in some sort of abeyance so the developer does not have to pay the pro-rata sure of the HOA on them. SVN simply passes on the unpaid HOA fees to the remaining owners, still generating their same outrageous management fees and kickbacks. There is no incentive to sell these foreclosed units, as their marketing department can continue selling "new" unsold fractional shares, pulling new owners into the abyss.
Any inquiry as to the nature of MF costs, if services are being bid out, or inquiries about what is actually delivered is met with stonewalling or deflections.
I receive unsolicited crap from TS resellers all the time. I ask how they found me and have been told that my ownership is public record. What needs to be done is to find out who the actual fractional owners are and recruit them the vote in a new board, who can then install a new management company.
So there's a lot of due diligence and stealth discovery that needs to occur. I believe this is the tip of a huge iceberg...with 20 properties, SVO is making 100's of millions of dollars by self dealing, kickbacks, etc.
If you are interested in protecting your interests, please send me:
A. Your name, phone and email B. Contract number C. What you own
I will start creating a database of owners that have an interest in correcting this nefarious arrangement and righting the wrong.
Am speaking with a few lawyers about a class action suit against the Association as they have breached their fiduciary duty to the fractional owners. I would say HR 1 could benefit by coming on board.
I am a pit bull on a piece of raw liver when it comes to abuses like this....people who do bad things?...bad things happen to them....
As well, feel free to call and discuss.
Henry Siegel 323.680.5411
Henry S.
Henry,
What is the update on your endeavor to file a class action suit ?? I am a Harborside II owner also. I am sick of the ever increasing fees also. I tried to sell, but the economy is in the tank and I will never recoup what I paid.
Can we email privately on this issue?? Does your phone except texts so that I can give you my email?
Regards, Mark M.
Mark M.
We were there for the day and thought about TS. But, we paid $159. each to the Royal Caribbean Cruise Line for a shore excoursion to Atlantis. If we went to the waterpark directly, it was $120. People who were there for the week complained about the high prices of restaurants and mediocre food. Glad we did not invest!. Thank you for letting people know about this outrage!
Jerilyn N.
I agree with everything everyone is saying. We purchased nearly 10 years ago and our fees have gone from around $750.00 a year to almost $2,000 a year. That is for every year and we only own in the even year. Not only that, but we can never seem to get a week that we are able to go, even when we try and book over a year in advance and we own in the platinum season. I think I am going to sell and take a huge loss, however I can always go to red week and rent any week I want for the same price as my fees and not have the headache of being an owner. It has become very apparent that they do nothing for the owners except keep gouging our pocket books. Last time we went to Atlantis, my husband commented that it certainly was not being maintained as a 5 star development as some of the timeshares we own in the states were much better kept.. When we arrived our beds had no bedspreads on them and when we asked for them, we were told that they had run out. This is what I pay for???? I would be interested in your class action suit Mr.Siegel.
Lynetta L.
I totally agree! What do you think will happen when the new resort opens. Properties will crash more, you won't be able to move on the Island. I love it and was going to purchase another week but when maintenance dues skyrocket I backed off and bought a 3 bed at the Grand Chateau in Vegas and my maintenance fees are almost half!
Brenda J.
Thank you, I thought I was the only one who has been outraged by the way they are conducting their figures. I have many times thought of a class action suit. I would love to speak with you regarding such actions.
I am a phase I owner and our fees have been going up without justification. They talk about all of the forclosures that are going on as a reason however, the units go back to SW to be resold. Unfortunately the units are no longer available to owners for availability. We absorb the MF increase but lose availability. I have been calling 3 times a day for 6 months trying to get a week. The whole thing is a scam and the owners are being cheated.
C.P.
Hi I'm Linda Wisniewski........I have a 2 bedroom lockoff in March & a 2 bedroom lockoff in July.......The fee's are absolutely ridiculous. When we bought both units were around $400.00, as we bought on the ground floor.Now I am paying over $6000.00. Any info you have about a class action suit I would definitely be interested in hearing about.....Please E-mail me at: mssunshine19@aol.com Thank for your time
Linda W.
Hi Henry, My husband and I bought a 2 bedroom lock-off in 2003 (Phase 1). Our HOA fees have doubled. Our contract # is 201904 and we would appreciate any help in reducing these costs. THANK YOU FOR YOUR EFFORTS.
Areti Tsavoussis (aretit@aol.com) Tom Papadimos
Areti T.