Legacy Owners at Costa Palmas

My name is Mike  and I am leading a large group of Concerned Owners at Costa Palmas. We have identified 55 Legacy Owners from Manzana 9, 10, and 15. As you all are aware, The Home Owners Assoiciation has been formed. Much to everyone’s surprise, the HOA fees are a great deal more than anticipated. They range from approximately $22,000 (M15) $7,500 (M9) and $6,200 (M10). There are 2 main reasons for these values. Irongate is claiming exemption from paying any HOA Fees on land that they have not sold to a third party. They are also claiming that they still hold voting rights and that the private land owners must make up the difference. In our calculations we have the annual HOA fees around$3500. This is also assuming that Budget Expenses are true. We have not been able to confirm these numbers as they are not handing over the financial statements, which is our right to have.

The Entire Development consists of 38 sub regimes, with each sub regime given a Pro Rata Value based on their area occupied as a percentage to the full size of the development. M15 is 3.74%, M10 is .78% and M9 is 2.18%.  These are the percentages of the Master Condominium Budget that each of our Manzana’s should pay. Again this does not calculate correctly as the Developer is claiming exemption again on areas not sold to a third party.

Some of you paid HOA Fees in the past, notably 2020 and 2021. The Developer never claimed exemptions in these years and the calculations were done correct. Law on the Condominium Property  Regime of the State of Baja California Sur, (Article 61) specifically states that the Developer is not exempt from paying HOA fees if there are:

1) Road Access (all roads are complete with cobblestone)

2) Infrastructure  for basic services at the lot (all lots have water, sewer, internet, etc.)

3) No movement of soil has been performed. (all lots are graded with retaining walls completed on water side)

Javier Zavala has been sent a detailed letter on these concerns and has been notified that they are not abiding by Baja State Law. We have asked them for their detailed calculations. It has now been over 3 weeks and no response has been received.

Now to the more urgent issues at hand. Costa Palmas has sent out the Bylaws for the Master Condominium, Bylaws for the Sub Condominium (Manzana’s) and the Building Guidelines. They Bylaws are littered with Penalties, Fines, Cash Grabs, etc. The most worrisome Bylaw that everyone of you should be extremely aware of is Article 21.

21.1 Each Owner has untilApril 1, 2025 to commence construction on their lot.

21.2 If owner fails to fulfil its obligation, a fee of $20,000 per month will start. The Developer after giving 30 days written notice will have the option to repurchase the land at the owners original price paid.

11.0(c)    In the event the owner has had fines, penalties due for a period of 1 year, the Developer has the right to impose a one time penalty of 100% of the owed amounts.

example. 12 x $20,000 =  $240,000 usd.
100% penalty = $480,000 usd.

We believe that this scenario would result in 90% of the Legacy Owners owing more than what they originally paid.

At a meeting conducted last week with concerned local Relators, Javier Zavala confirmed that the Developer will start enforcing this bylaw April 1, 2025.

With the introduction of these Bylaws, the Developer has devalued all of our lots, which we believe is part of a Master Scheme to recapture all of the 55 Legacy Owners lots. The value of this land grab could net Irongate over $200 million dollars.

We urge everyone to read the Bylaws. There is so much more. Example, 1.5 %transfer fees, must sell property through Costa Palmas, Costa Palmas has the right to approve any buyers, $50,000 construction approval cost, $100,000 builders lien deposit and much more.

Many offers to purchase have failed due to these egregious Bylaws and CC&r’s. No sane person wants anything to do with our lots under these conditions.

If you are interested in fighting back, please contact me privately. We completely understand if you are intimated by the Developer and rest assured if you want to be a part of the group but remain  anonymous I can make that happen. We have many things in the works and will not stop until the Original Investors are treated fairly.