Question: “Why don’t so many condo complexes qualify for financing?
Chris’s Answer:
Currently most condos on St. Croix must be purchased for cash since they don’t qualify for financing. A condo complex is warrantable if it operates as closely to a residence as possible and is not seen as a “condo hotel” and complies with Fannie Mae and Freddie Mac Mortgage guidelines. When lenders are considering loans on condos in a specific complex, they look at many factors: some HOAs, while insured, don’t meet the lenders guidelines for coverage, the number of vacation rentals in condo complexes is increasing, and a couple of condo complexes rent office space to agencies that rent condos inside the complex which can appear to lenders that the complex is a condo hotel.
After Hurricane Maria in 2017, insurance companies paid claims which were sometimes substantial. Many insurers decided to raise their premiums in subsequent years. Condo complexes handled those rate increases in different ways. Some passed them along as either increases in the monthly HOA fees or as special one time assessments. Some HOAs reduced their premiums by increasing their deductibles or by lowering the amount of their insurance coverage.
Lenders want the properties they finance to have a certain amount of insurance coverage. Some lenders have become unwilling, in the short term, to lend into some complexes until these issues can be resolved by the insurers and individual HOAs. Many of the Condo Boards on St. Croix are currently reviewing these issues, and working with the insurers to make adjustments to their coverage so that lenders are satisfied.
Do you have other real estate questions, contact us!
Question: “Why does it seem like Home Owner’s Association (HOA) fees are high on condos?”
Christie’s Answer:
Often people compare condo fees on St. Croix to condo fees in the states. A big difference is the HOA fees here usually include windstorm insurance. This is essential to have because it means that each individual condo and the common areas are insured and that the entire complex would be covered for damage from a storm. Those HOA fees cover other things too. While they vary from complex to complex, those other items usually include: maintenance of the exterior of the buildings, professional landscaping, pool maintenance, administrative expenses, monthly pest control, TV, and internet. Basically the complex can’t run and be maintained without the owners sharing in the expenses of the upkeep. When looking at HOA fees, consider what they include, and what they are not including, so that you know your own responsibility for other services.
Do you have other real estate questions, contact us!
Pleasant temperatures and low rainfall make December through May a great time to go to St. Croix especially if you are trying to escape the cold temperatures and precipitation that comes with living in states that have harsher winters. If you are planning to visit St. Croix in the winter, this is a great time to be on the look out for flight deals. We recently saw The Points Guy (TPG) mention winter flight deals to St. Croix for less than $400 (depending on when and were you fly from). You can read the article here.
Travel deal articles, industry-related newsletters, etc. that report flight sales are helpful in alerting consumers on certain deals, but often the deals are for very specific routes and dates, and often may not meet your requirements. That is why we recommend trying search engines like Google Flights to find cheap flights (note, Google Flights does not track Southwest Airlines flights) for more personalized deals. We have used it before and have read about it on The Points Guy and Thrifty Traveler. Enter your flight preferences, and the search engine shows flight options along with a historical price guide, which indicates whether the fare you found is low, high or near the average price for flights on this route. We find this very helpful when trying to book a flight that is best priced for our requirements.
“It can help you quickly find the best flights for your travel, but it can also track prices and let you know if you are getting a good deal.”
The Points Guy, 9/8/23
Want to learn more about Google Flights? These two articles will be helpful:
The V.I. Department of Education recently celebrated a significant construction milestone at the new Arthur A. Richards PreK-8 School site according to the VI Consortium. The recent concrete pour signifies a significant construction milestone for the new school development project. Read more about the 3 planned phases of construction in this article here.
The Virgin Islands Department of Education held a groundbreaking ceremony in February 23 to announce the start of the $163 million construction of the new Arthur A. Richards PreK-8 School, marking the first time in nearly three decades a school has been built in the Territory. The school, which will feature state-of-the-art learning spaces, will be located at the site of the former Evelyn M. Williams Elementary School. More information on the school’s plans can be found here.
The previous Arthur A. Richards Jr. High School was severely damaged by Hurricanes Irma and Maria in 2017. According to the US Virgin Island Department of Education, the new school campus is designed to be net zero energy ready and is purposefully sited in an E-W orientation to maximize opportunities for passive cooling. The project will use the existing ecology and systems on the site and the culture and heritage of the islands in the design of the seven-building campus. 3D visualizations from the Department of Education below.
Congratulations to St. George Village Botanical Garden and the V. I. Trail Alliance for each receiving a $2.5M 4-year grant from the USDA Forest Service Urban and Community Forestry Grant Program! The botanical garden and the trail alliance were 2 of 385 grant proposals selected from thousands of entries nationwide.
The St. Croix Source reported that the grant, “Strength of Our R.O.O.T.S.: The Community’s Reclamation of Our Trees & Soil in the St. George Village Botanical Garden, St. Croix, U.S. Virgin Islands,” is a conservation project that will plant trees in the St. George Village Botanical Garden and on school properties. The garden specifically hopes to increase the number and diversity of garden trees by 220% percent by planting 1,100 new tropical trees with associated labeling and signage. Read the full article here.
According the the VI Consortium, The Virgin Islands Trail Alliance Inc. plans to harness volunteer efforts to remove invasive species on St. Croix and replace them with native species and fruit trees, in an effort to “heal” the Big Island’s forests. “Healthier forests will provide tools for resilience to face daily and future environmental stresses,” according to the Trail Alliance. Read the full article here.
More about the Urban and Community Forestry Grant Program:
