Golden Surf Towers Condominium

Owner Information Update

(Non-Association Communication)

This Is About Risk — Not Politics

At Golden Surf Towers, many owners have asked a simple question:

“If I pay my dues and assessments, why should I worry about Association debt?”

The answer is straightforward:

Because Association debt directly affects your ability to sell, refinance, insure, and protect your investment — even if you personally are current on every payment.

This update explains how continued debt exposure translates into real financial consequences for owners.

1. Association Debt Follows the Property — Not the Board

When the Association carries debt:

• It is tied to the building, not the individuals who approved it
• New owners inherit it automatically
• Existing owners remain liable regardless of board turnover

Debt does not reset when elections change.

It remains until fully repaid.

2. Impact on Sales and Financing

Lenders increasingly scrutinize condominium finances.

Continued deficits, loans, and unfunded reserves can result in:

• Buyers being denied mortgages
• Higher interest rates for approved loans
• FHA / conventional loan ineligibility
• Deals falling through late in escrow
• Lower appraisals due to financial risk flags

Even well-maintained units can become harder to sell when Association finances raise concerns.

3. Estoppel Disclosures Matter More Than Ever

When a unit is sold, the Association issues an estoppel certificate.

This document typically discloses:

• Outstanding special assessments
• Known Association debt obligations
• Financial liabilities tied to the unit

If debt and borrowing are not clearly explained to owners before a sale, buyers may be surprised — and transactions may collapse.

Transparency protects:

• Sellers
• Buyers
• The Association itself

4. Insurance, Loans, and Reserves Are Interconnected

Overbudgeted insurance, ongoing loan servicing, and zero reserve funding create a dangerous cycle:

1. Operating shortfalls appear
2. Loans or lines of credit are used
3. Interest costs grow
4. Reserves remain unfunded
5. New special assessments become unavoidable

This is not sustainable long-term financial management.

5. What Happens If This Continues?

If debt continues without a clear plan to reduce it, owners may face:

• Additional special assessments
• Increased maintenance fees
• Reduced borrowing options for buyers
• Declining unit values relative to comparable buildings
• Greater lender leverage over Association assets

At the extreme end, prolonged financial distress can place ownership control at risk, as creditors gain influence over decision-making.

6. What Responsible Governance Looks Like

A financially stable Association should have:

• Full disclosure of all loans and credit facilities
• Clear explanation of how owner payments are applied
• Accurate, conservative budgets
• Fully funded reserves where required
• A written plan to reduce debt, not normalize it

These are not aggressive demands — they are standard fiduciary practices.

Why the February 19 Election Matters

This election determines whether the Association moves toward:

• Transparency and accountability
  or
• Continued borrowing, unclear disclosures, and rising risk

Owners deserve leadership that treats debt as a temporary exception, not a permanent operating strategy.

Owner Action — February 19 Election

If you support transparency, financial responsibility, and protecting property values, please vote for the full owner slate:

Vote for the Full Team

• Matthew Greimel
• Cynthia Clemens
• John DeLuca
• Tobey Salem
• Oriana Gherman
• Maggie Enriquez
• Larissa Bethel

These candidates are committed to:

• Full financial disclosure
• Responsible debt reduction
• Proper reserve funding
• Fair enforcement and due process
• Restoring trust and long-term stability

Disclosure / Notice:

This communication is from Concerned Owners and the Owner Candidate Team. It is not issued by or on behalf of the Association, its Board, management, or vendors. Statements reflect owner concerns and information drawn from Association records and owner-available documents. Owners are encouraged to independently verify all information using official Association materials.