By Jon Held, President, Continental Country Club HOA
As most of you know, Continental Country Club’s HOA filed for Chapter 11 reorganization earlier this month. Several factors prompted this, from the ongoing situation at Lake Elaine to concerns about having enough in our reserve account to maintain a facility that is 50 years old.
The reorganization will take several months, but progress has already been made.
Initial Court Proceeding & SunWest Bank
An initial court hearing before Judge Eddward P. Ballinger, Jr. occurred on Feb. 18. We informed Judge Ballinger that we have reached an agreement with lender SunWest Bank that allows us to continue repayment of our loan during the reorganization process, and to begin paying our post-petition bills as they come due.
There will be a status update with Judge Ballinger at 11 a.m. on Tuesday, April 27. Details on how to call in for that meeting will be made available when we receive them.
As noted above, our concerns about inadequate reserves prompted the Chapter 11 filing.
The Board hired Reserve Advisors to prepare a reserve study for all assets with the exception of Lake Elaine, and it has submitted a draft report. You can view the Draft Reserve Study Report in the Owners Portal on Appfolio.
The report is lengthy, but there is an executive summary at the beginning. It highlights the expenditures required over the next 30 years, estimating that $2 million will be required over the first 5 years and $8.1 million over the first 10 years.
The report also includes a possible scenario for the funding of the reserve. A more detailed analysis will be completed as part of the reorganization plan.
Keeping You Informed
We’ll continue to post information on the Continental website’s Chapter 11 page and the owner’s portal. Please continue to submit your questions and comments via email. We are continually adding to the FAQ section of the Chapter 11 page to address these questions.
And we’d like to close this update with an apology. Several of you could not log on to our Board meeting on Feb. 12 due to a cap on the number of Zoom participants. For that we are truly sorry. Please know we have modified our Zoom account so that we can accommodate anyone who wishes to participate in upcoming Board meetings. The next meeting will be held at 2 p.m. on Tuesday, March 23, and the Zoom link to this meeting is here (the passcode is 543324).