Important Condo Conversion Update

If you didn't catch the latest update from the Board regarding condo conversion posted in the lobby, check it out here. Please read it, as it contains important information regarding the current status of the conversion and the need to change course if we want the conversion to complete.

Last Thursday we had a Town Hall meeting with guest speaker Jack Boyajian of ROA Hutton. ROA Hutton is a company specializing in co-op to condo conversions and could prove to be our only viable option in completing this conversion. We invited Mr. Boyajian to this special meeting to share the process ROA Hutton would undertake if we were to engage their firm to complete the process. A few highlights from the meeting:

  • The conversion would be taken on contingency, meaning we would not pay anything unless ROA Hutton were able to successfully convert the Royal Palms
  • Recent changes to the law this year would require a revision of our CC&Rs; this is true regardless of whether we hire ROA Hutton or not
  • If engaged, ROA Hutton has provided a 6 month completion timeline; much of this time is a result of statutory requirements, such as needing 35 days for a vote of updated CC&Rs by shareholders
  • Some of the work that has been completed is still usable; other work is not usable given the amount of time that has lapsed or the quality of the work that was done
  • ROA Hutton considers shareholders its clients, not the Board; if hired, they would individually engage each owner to ensure the process is handled quickly and efficiently
  • ROA Hutton is working to acquire what is called a Collateral Replacement Agreement (CRA) with Fannie Mae, which would prevent owners from having to refinance once we convert. Obtaining the CRA is not a guarantee, though ROA Hutton is increasingly optimistic of this happening.
  • Hiring ROA Hutton to complete the conversion would require funds beyond those available in the conversion account. We have no currently available option to complete the conversion without needing additional funds.
  • Jack shared some of his professional history, including some details of debt collection business he was involved with which garnered much criticism and led to suits being filed; he assured everyone that these old businesses had nothing to do with ROA Hutton or its practices and invited shareholders to contact him directly if they had any questions or concerns about matters of his personal or professional past.

Thursday Meeting with Pam Moore

We wanted to engage shareholders prior to making any decisions about how we proceed. We have been examining all options available to us, which have been unfortunately few given the obstacles we face.

As ROA Hutton seems to be our most viable option at this time, we wanted to invite our Corporate Attorney Pam Moore to discuss her thoughts on them, the contract they have provided the Board for our consideration, and respond to any shareholder questions or concerns.

This would be an excellent opportunity to be part of the discussion, and we hope everyone can join in. If you can't be there, share your thoughts at conversion@100atlantic.com. If you have a question for Pam, we will share it with her in the meeting.

Hope to see you there!