Sunday, August 1, 2021
FOR LENDERS

FAQS

Legal  name: HAMILTON COVE HOMEOWNERS ASSOCIATION

Total number of units in the project: 190

HAMILTON COVE IS NOT A CONDOTEL—SEE BELOW

Does the project have any of the following (yes or no): 

  • Are there any deed or resale restrictions? NO
  • Does any part of the project consist of manufactured homes? NO
  • Are unit owners required to purchase any mandatory memberships or is the association or master association subject to a recreational lease? NO
  • Does the association receive any non-incidental business income? NO
  • Is any part of the project a continuing care facility? NO
  • Does the project contain more than 35% commercial space? NO
  • Is the association involved in any litigation or pre-litigation activities? NO
  • Does any single entity own more than one unit, if so, how many do they own? 3
  • Does each unit have its own separate HVAC (heating and cooling) system that each unit owner is responsible for the maintenance and replacement of the unit? YES, NO AC

Contact information for the insurance agent for the master insurance policy for the project: BOB HESSLER  909 337 9437

INSURANCE SUMMARY HERE

FOR MORE INFORMATION, GOVERNING DOCUMENTS, FINANCIAL STATEMENTS REGISTER FOR THE SITE. ANYONE CAN REGISTER.

HAMILTON COVE IS NOT A CONDOTEL

Hamilton Cove consists of 184 condominium units and 6 single family residences. It is located on the shore on Catalina Island. As such it is subject to the requirements of the California Coastal Commission. When it was built, the Coastal Commission required that Owners be permitted to engage in Short Term Renting.

The Association is managed by the Owners. There is no management company. Eighteen units are occupied full time. The remaining units are second homes.

With regard to any aspect that might result in Hamilton Cove being characterized as a condotel the following are the facts:

1.  Hamilton Cove is not licensed as a hotel or operated as a hotel.

2.  There is no registration desk.

3.  The Association does not provide any cleaning service, central telephone service, central key system or other hotel like service.

4.  There is no rental program or rental pool.

5.  The Association receives no revenue from Short Term Renting

6.  Hamilton Cove is not transient in nature. Units were rented for less than 20% of the available nights in 2019.

7.  There is no commercial space at Hamilton Cove.

8   Owners who engage in Short Term Renting must have an individual located in Avalon, California available 24/7 whenever renters are present to take charge of or control the renter’s actions.

Some Owners who engage in Short Term Renting use one of two local rental agencies: Hamilton Cove Realty and Catalina Island Vacation Rentals. Despite its name, the Association has nothing to do with Hamilton Cove Realty. The Association has nothing to do with Catalina Island Vacation Rentals. Both entities advertise on the Internet. In addition, some Owners who engage in Short Term Renting use Airbnb or other Internet sites to advertise their units. The Association has nothing whatsoever to do with such advertising and no way to control it.

If Fannie Mae or Freddie Mac have characterized Hamilton Cove as a “condotel”, it is incorrect. There is nothing the Association can do to correct this. Only lenders can raise the issue. FOR A COPY CLICK HERE