Boards of directors of owners associations in the U.S. Virgin Islands and elsewhere play a critical role in managing timeshare resorts. This is especially true in mature resorts that are past the development stage and are being run by their owners. Boards frequently contract with management companies to handle the day to day operations of the resorts and may rely on their expertise — so long as all is going well.  But even with the best of management companies, board members bear a fiduciary obligation to the ownership and  must monitor and review the performance of the manager, resolve policy issues, and engage in the long range planning that is essential for a resort to remain healthy.

A primary challenge for any interval ownership regime is attracting qualified people to serve on boards of directors of owners’ associations. Because interval owners usually own only a week at a resort and don’t reside where the resort is located, their interest in participating in the management of the resort may not be a high priority. In fact, many owners just want to visit and have fun. To participate in board functions takes time and effort that few are willing to expend. That being said, there seems to be, in most cases, people who are willing to step forward, either because they like to be involved or have a sense of duty or, in the case of a troubled resort, to protect their interests.Continue Reading Timeshare Board Membership: A Key to a Successful Resort

Investors sometimes make investments in real estate that turn out badly.  There is an old saying in the Virgin Islands that "the man that makes a small amount of money in the Virgin Islands is one that started with a large amount of money!"  Many may blame their loss on the "real estate cycle" when actually there were mistakes that could have been avoided by better planning and analysis.

Based on over 35 years experience in real estate, I have identified several costly mistakes.  Here are a few:

Misjudged Demand. 

Developers have faced costly setbacks by assuming that customers existed without undertaking adequate market analysis.  For example, a mixed-use retail/office development designed to attact EDC businesses and upscale shoppers just when the Territory’s EDC Program had a setback from additional federal regulation and upscale shoppers took it on the chin in the current economy.Continue Reading Costly Mistakes In Real Estate

As part of the Obama Administration’s effort to create jobs and ease pressures on the housing market, the U.S. Department of the Treasury today announced $20.2  million in American Recovery and Reinvestment Act (ARRA) funding to spur the development of affordable housing units in the U.S. Virgin Islands.    

"Today’s announcement of housing funds demonstrates how the Recovery Act is putting our nation on the path to economic stability, one community at a time," said Treasury Deputy Secretary Neal Wolin.  "This initiative will help spur construction and development, create much needed jobs, and increase the availability of affordable housing for families around the country." Continue Reading Obama Administration Announces $20.2 M in Housing Funds for Virgin Islands

Governor John P. deJongh, Jr. has signed an Executive Order which sets the dates for payment, delinquency, and appeal of 2006 U.S. Virgin Islands real property taxes. Governor deJongh’s Executive Order states that the Tax Assessor has determined that all 2006 real property tax bills to both residential and commercial property owners have been issued and that new dates…

The recently enacted economic-stimulus law contains a number of provisions but hidden within the legislation is an unusually attractive new tax break for many homebuyers — if they can only figure out how it works.

The new law sweetens a provision known as the "first-time homebuyer credit." In essence, if you meet certain qualifications, such as buying a home from Jan. 1 through Nov. 30 this year, you may be eligible for a tax credit of as much as $8,000. You also have a choice of claiming the credit on your federal income-tax return for 2008 or 2009. A credit is typically more valuable than a deduction, since it eliminates your taxes on a dollar-for-dollar basis — and in this case, you may receive the credit even if you don’t owe any taxes.Continue Reading Economic Stimulus Offers New Tax Breaks for Homebuyers

Tom Bolt, Chair of the Virgin Islands Continuum of Care on Homelessness, addressed the American Bar Association’s Commission on Homelessness and Poverty at its Midyear Meeting earlier today in Boston, Massachusetts.

Bolt noted that the current economic situation would continue to put a strain on homeless services throughout the nation and would advance from the ranks of low income to middle income families.  "We are look at an economic tidal wave that could devastate many families that never thought homelessness would touch them."

Continue Reading Territorial Advocate Addresses National Homeless Commission