Coastland Unilaterally Hires New Property Management. Read on…

Fellow Ocean Sands Owners,

Coastland Corporation informed the Owner representatives of the Ocean Sands and Crown Point POAs of some decisions they had made via email. Coastland has decided to bring in additional resources to help manage the POAs. Both sets of Owner representatives had many questions and concerns, as they were excluded from the decision-making process. Below, in Coastland’s exact words, are the three email statements announcing and explaining their decision. We would note that Coastland avoided answering questions from both sets of Owner Representatives regarding Coastland’s decision to take this action unilaterally.

On 9/2/15 Coastland sent the following:

In order to address certain governance concerns expressed at this year’s Property Owners meeting regarding the POA, Coastland is planning to retain a management company in the Outer Banks to consult with Coastland on POA issues and to become involved in certain property management and maintenance duties. Seaside Management will be our new partner in the administration of the POA.

Our hope is that Seaside will work hand in hand with Coastland and the POA to keep the property running smoothly as it continues to grow and more issues are raised, which has escalated recently. We plan to utilize Seaside’s experience and knowledge of Association Management in the Outer Banks to assist in community related issues.

Coastland will remain the Management Company of record and will continue to oversee the financial administration of the POA. Bob DeFazio will remain the President of the POA and the on-site Property Manager.

Coastland Corporation

1062 Laskin Road #12A

Virginia Beach, VA 23451

757-422-9111 Telephone

757-422-9113 Fax

On 9/23/15 Coastland sent the following:

Dear Rick and Al,

We hope you will welcome Seaside Management to Ocean Sands as an additional partner to provide services that will benefit our community. Seaside will have various duties which will be evolving as this partnership goes forward. These duties will complement Bob DeFazio’s and Coastland Corporation’s existing duties and will be determined based on the needs of the POA and the management company.

There are numerous community issues that require the time and attention of Coastland as the management company. In addition to the standard daily maintenance and management of the property, there are ongoing projects that need to be addressed regularly.

Coastland is also addressing, in advance, the long-term succession of management for Ocean Sands since this was brought up several times by homeowners and board members. Coastland has no plans to turn over any management functions at this time.

Seaside’s fee will be a separate budget item in the amount of $2,383.33 per month. Under the Seaside management agreement there is a 30 day cancellation notice and each quarter the contract will be revisited to determine the needs of the POA and the duties of Seaside.

Coastland Corporation

1062 Laskin Road #12A

Virginia Beach, VA 23451

On 10/9/15 Coastland sent the following:

Seaside Management has been hired to assist the POA’s, Bob and Coastland in the numerous duties and responsibilities that arise on a regular basis in the course of managing associations the size of Ocean Sands and Crown Point. With the increasing activities of the county concerning the wastewater renovation, the storm water plan, the additionally required water resources and treatment, and the greenway project, Coastland has found itself to be understaffed and Bob is a single person who is on-site and sometimes works around the clock to ensure that the communities run smoothly.

The hiring of Seaside is akin to adding staff to the offices of Coastland and Bob DeFazio. It was more efficient to go to a well-known Association Management company in order to procure appropriate assistance in the management of these communities.

The concern has been presented by homeowners that there was no back-up management plan should Coastland ever discontinue the management of Ocean Sands and Crown Point for any number of reasons. Seaside is now on board to become involved in the properties and their issues so that in the event Coastland ceases to manage the property a qualified company is in place to act on behalf of the POA’s.

Seaside is being paid directly by the POA’s just like all other vendors who are hired to do work for the Associations. Coastland does not pay any vendors of the POA’s directly. The Management fee for Coastland is a separate fee just like any other vendor.

Any further comments should be addressed directly to Bob DeFazio or Jeff Shields at Seaside.

From the Governance Committee:

The Governance Committee is pleased that Coastland is listening and reacting to the comments of owners. Naturally, we also welcome any additional resources that can be focused on our community.

We do have some questions regarding the process used to select Seaside and who pays for their services. Coastland picked Seaside, hiring them to assist Coastland. Because this action was taken without involvement of the POA Boards, we believe the the cost should come out of Coastland’s existing management fee, and not passed to the POAs, i.e. the owners. Overall this is a positive step for our community from an operational standpoint, although the bypassing of the POA Boards raises concerns from a governance standpoint.

Sincerely,

Al Marzetti & Rick Kinner

1 thought on “Coastland Unilaterally Hires New Property Management. Read on…”

  1. I agree, this should be paid by Coastland and not POA’ fees. Every year, things are being added onto the POA’s fees with absolutely no input from the home owners. At some point, owners will decide it is too expense to own property in Ocean Sands.

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