Joelle Varnum Thank you to all the owners who have voted, attended information sessions, and asked questions. This is an important time for the Grand Summit Homeowners Association and we appreciate your participation. After receiving questions and requests from the ownership, there are a few important financial updates below.
The Grand Summit room renovation project will transform the hotel and its value to owners, it will improve the experience for owners and guests, and increase rental income and the overall value of our quartershare compared to what they are now. It’s a big and important decision, so if you have any questions or hesitations, please be in touch. We want everyone to be confident that you ‘Know Before You Vote’.
Sincerely,
Karen Geraghty
On Behalf of the Grand Summit HOA Executive Board
Paying 100% of your portion upfront, rather than 20% lump sum special assessment and financing remainder for 10 ½ years.
The Association revisited this because some owners have asked if they can do so. Our legal counsel advised us on 6/12 that we can offer this. Consequently, there are now two options – (1) pay 100% of your portion of your unit cost upfront, between July 15 and September 30. (2) pay 20% of the cost of your unit upfront, between July 15 and September 30, and the rest of the project will be financed by Skowhegan Savings Bank with a payback period of 10 ½ years.
(If you pay 100% upfront and you sell your unit prior to the end of the loan, the buyer of your unit will not be paying the increased dues amount that relate to the annual debt service of this loan. They will be paying quarterly dues based on annual operating and capital budget.)
First payment of annual debt service
Depending on how many owners pay 100% upfront and when we begin to incur costs on the project (with a start date of March 2024), the increase in quarterly dues for annual debt service will not begin before February 1, 2024.
Depending on how many owners pay upfront, and how much the Association needs to borrow for the project, the information you currently have about the quarterly dues increase for debt service is the maximum amount you will pay. It could be less, depending on how many owners pay upfront, and how much the Association needs to borrow for the project.
CLARIFICATION on TERM of LOAN
The term of the loan is 10 ½ years which means that once quarterly assessment of annual debt service begins, it will last for 42 quarters. In the initial information shared with owners there was a typo. It referenced 10 ½ years multiple times but there was a reference to 32 months. The correct number is 42, not 32.
