Extreme HOA fee increase at Coral Estate: homeowners rise in protest

The Coral Estate Homeowners Association (HOA) has announced an extreme increase in membership fees. Costs for infrastructure developments by project developers are unfairly being passed on to paying members, leading to discontent and financial difficulties among residents. 

WILLEMSTAD - The Coral Estate Homeowners Association (HOA) is on the verge of making history, but unfortunately not in a positive way. What is currently happening at this resort is unprecedented and has never occurred before at a resort in Curaçao. Severe mismanagement, conflicts of interest, and authoritarian decision-making dominate the situation, leaving paying homeowners sidelined. 

HOA fee increase and financial impact on homeowners 

On October 20, paying members received a notification regarding the 2025 Budget, which announced an extreme increase in the annual membership fee of more than 62%, from NAF 4,000 to NAF 6,500 per year, starting in 2025. This increase, announced only three weeks before the General Meeting on November 10, will be followed by an automatic annual increase of 3% starting in 2026. This means that by 2034, the membership fee will rise to NAF 8,481 per year. This escalation places significant financial pressure on many residents. 

13 million ANG for infrastructure at the expense of members 

At the General Meeting on November 10, 2024, the Coral Estate board will present a proposal to increase the HOA fee. This plan is based on the Multi-Year Maintenance Plan (MJOP), which was drafted by the project developer and includes an amount of 13 million ANG for the construction and development of new infrastructure. These infrastructure projects focus on areas entirely owned by the developer, such as roads and green spaces. 

What is particularly concerning is that these costs are entirely passed on to the paying members of Coral Estate, while these expenses should primarily be borne by the developer. According to Article 5.1 of the General Provisions of Coral Estate, owners are responsible for contributing to maintenance, management, and security costs, but nowhere is it stated that they are responsible for the construction of infrastructure at Coral Estate. 

Developers at Coral Estate fail to meet agreements again 

According to a previously agreed arrangement, the developer was supposed to transfer all communal areas, such as roads and green spaces, to the HOA. In exchange, the developer received permission to create four additional building phases, which were not part of the original master plan and are even partly built within green spaces. These infrastructure works have been ongoing for over four months, leaving Coral Estate open and neglected. The deadline for the transfer, which expired on October 24, 2024, has been ignored. 

APC votes dictate Coral Estate’s future 

Since the General Meeting in April 2023, the Coral Estate board has granted 165 votes to the developers and the APC (Algemeen Pensioenfonds Curaçao), of which 137 were allocated to the APC. This is noteworthy because neither the developers nor the APC pay membership fees. Since the APC received these unjustified votes from the board, they have already determined the outcome of four General Meetings. As a result, the developers and the board could push through decisions that are not in the interest of paying members. The paying members fear that in the upcoming vote on approving the MJOP, which includes the extreme 62.5% fee increase, these votes will once again be decisive and to the detriment of the paying members. 

The action group ‘Paying Members of Coral Estate’ has therefore sent a letter to the APC management, urgently requesting that the APC abstain from voting during the upcoming General Meeting. This is to ensure a fair and transparent democratic process. 

Participation impossible for members during digital General Meetings 

Since the COVID-19 pandemic, no physical member meetings have been held at Coral Estate, despite the pandemic being long behind us. The General Meetings (AV’s) are held exclusively online, with members only able to submit written questions through the chat box. Only the board speaks. Members must turn off their microphones and cameras, making direct participation impossible. 

Questions posed in the chat during the digital AV are either not answered or only partially addressed by the board. This makes it impossible for a democratic meeting to take place, effectively sidelining the members. Despite multiple requests to organize these meetings physically or in a hybrid format, the board has not complied. This undemocratic approach frustrates the members and leads to fewer participants at the General Meetings. 

Development of a new hotel in the conservation area 

Despite previous promises to protect green spaces and conservation areas within Coral Estate, the board is currently negotiating with a developer to build a new hotel in a conservation area of the resort, located to the right of the Coral Estate Centre. This area, initially designated as a nature reserve, should not be developed according to the deed and Article 9.2a of the EOP, which legally protects it against such developments. This article states that only extensive outdoor daytime recreation is allowed. Although this land currently does not belong to Coral Estate, the board wishes to facilitate the developer to integrate it into the resort, resulting in construction against the established agreements. This not only endangers nature but also the quality of life for residents. Many residents fear that this is the beginning of further construction projects in protected areas and green spaces. 

Luxurious façade versus daily reality 

Although Coral Estate is known as one of the most luxurious resorts in Curaçao, the reality for its residents is far from idyllic. Due to the continuous influence of developers and the current board’s mismanagement, the atmosphere and quality of life have drastically declined. Homeowners have been promised for years that Coral Estate is ‘fully developed’ and that the green spaces would be transferred to the HOA, but these promises have repeatedly not been fulfilled. Residents fear that new construction projects, like the plans for a hotel in the conservation area, will continue, turning Coral Estate into a horrible built-up area. 

Desperate reactions from homeowners: ‘No longer affordable’ 

Many homeowners have expressed their concerns about the extreme increase in the membership fee. One resident shares: "This is unaffordable for us. We have managed the costs for years, but this increase is absurd and unsustainable." Another homeowner adds: "I am afraid I will have to sell my house if this increase goes through. This board is putting us in financial trouble." 

Additionally, several members reported not receiving the invitation for the General Meeting on November 10. This is worrying, as paying members are unaware of this crucial meeting where the fee increase will be voted on. The action group emphasizes that this is a form of exclusion and questions how the board expects members to vote without proper communication. 

Vision for the future: a fair and transparent Coral Estate 

The action group ‘Paying Members of Coral Estate’ is an independent group of involved homeowners acting solely in the interest of the paying members. "We have no ties to developers or other stakeholders. We strive for a fair future for Coral Estate, where the burdens are shared equitably, and the common values – Peace, Space, and Safety – are respected." The action group calls for an independent investigation into the board’s financial practices and wants to limit the power of the developers to achieve transparent and fair governance. 

Call for united action: end authoritarian and unfair governance 

The action group calls on all paying members of Coral Estate to unite and vote against the MJOP and the extreme fee increase. "What is happening now is unprecedented and has never occurred at a resort in Curaçao. This goes beyond poor management; it is an attack on the interests of the homeowners and the common values that Coral Estate should represent: Peace, Space, and Safety." 

The action group urges members to make their voices heard and actively participate in the General Meeting on November 10. “We must unite to stop this authoritarian and unfair governance and ensure a fair future for Coral Estate.”




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