1. Introduction
Over the past few years, Caribbean Developments (Antigua) Limited (CDAL) has raised Jolly Harbour's monthly community charge (CC) from US$356.50 to US$390 (in 2023 and 2024) and now proposes US$497 for 2025—still with no allocation to the Reserve Fund recommended by the July 2022 Reserve Advisors Study ("the Study"). Under both Antiguan law and British common law precedents (e.g., Waaler v Hounslow LBC [2017], Fluor Daniel Properties Ltd v Shortlands Investments Ltd [2001]), a developer or management company is obligated to ensure essential infrastructure is properly funded. Charges to freeholders should only be for services "to and for the benefit" of their respective parcels, not for catching up on the developer's own years of under-maintenance.
The Study expressly stated that from 2023 to 2025, Jolly Harbour needed multi-million-dollar "catch-up" repairs to address neglected sewage lines, generators, and seawalls. By deferring these urgent repairs to 2026 and beyond, Jolly Harbour compounds 3% annual inflation and a heightened risk of catastrophic system failures. Meanwhile, instead of CDAL paying for its own negligence, the "new owners" of CDAL have merely offered an "interest-free loan" of US$800,000 "to the community"—although no legal definition of "community" exists to cover developer mismanagement. Under Antiguan and British legal standards, such neglected obligations typically rest on the developer, not the freeholders. Owners must decide whether to pay significantly more now to align with the Reserve Study (and avoid meltdown-level special assessments later) or gamble with minimal short-term savings that could trigger massive emergency fees if major failures occur.
2. Overview of the 2025 Budget: Where Does the Proposed US$497 Go?
For 2025, CDAL forecasts about US$5.34 million in Total Expenses, matched by the assumed Income if each of Jolly Harbour's ~833 freeholds pays US$497 monthly (plus minor revenues). Crucially, zero of these fees go toward capital repairs mandated by the Study. Yet under Antiguan law (and consistent with British precedents), freeholders should pay only for services benefiting their parcels, not subsidizing developer negligence.
Below is a simplified breakdown:
- Wages & Benefits (~US$1.62M)
- Management Staff Wages (once funded by the Developer), Property Operations & Maintenance, Finance, Grounds, Security (Boat), Warehouse, Sports Center Attendant.
- Owner Concern: Items must serve the parcels' direct benefit (e.g., sewage, roads, basic security)—not expansions or amenities that owners neither requested nor benefit from.
- Maintenance Expenses (~US$436K)
- Sewage Maintenance (~US$131K), Pool Maintenance (~US$30K), Villas Maintenance (~US$40K), plus generator, electrical, water, beach, roads, etc.
- Owner Concern: Why pay for "Pool Maintenance" or "Villas Maintenance" if it doesn't benefit one's own parcel, especially when critical sewage lines are neglected?
- Utility Expenses (~US$529K)
- Electricity for property lighting, sewage plant, offices, warehouse, sports center; water consumption for "community" areas.
- Owner Concern: Are these overheads beneficial to each parcel or do they primarily fund expansions that owners never use?
- Rent Expenses (~US$368K)
- Tennis, Pickleball, and Pool rent (~US$148K), Warehouse, Admin Offices, Security Huts.
- Owner Concern: "Tennis, Pickleball, and Pool" lumps ~US$148K onto every freeholder, even if they never utilize those amenities.
- Operational Expenses (~US$2.39M)
- Security (Contract): ~US$577K, Infrastructure Replacement: US$600K, Bad Debt Expense (~US$288K), plus insurance, credit card fees, landscaping, property taxes, phone, administrative overhead, monthly JHPOA fee (~US$36K), etc.
- Owner Concern: "Infrastructure Replacement" at US$600K is far beneath the US$3M+ recommended for near-term capital outlays. Meanwhile, "Bad Debt Expense" (US$288K) effectively penalizes responsible payers for uncollected fees from others.
Key Issue: No Reserve Fund contributions
The Study demanded multi-million-dollar catch-up from 2023–25, but CDAL did US$0 in 2023–24 and now US$0 again for 2025, effectively pushing the entire backlog to 2026+, when costs will be inflated and risk soared.
3. The Critical "Catch-Up" Repairs the Study Advised
A. Original Recommendations (2023–25)
The Reserve Advisors Study recommended urgent multi-million-dollar capital contributions in 2023–25:
| Year | Recommended Reserve Contributions | Approx. Reserve Per-Unit (Monthly) |
|---|---|---|
| 2023 | ~US$4.88M | ~US$488 |
| 2024 | ~US$3.01M | ~US$302 |
| 2025 | ~US$3.05M | ~US$305 |
Combined with an assumed US$390–$500 monthly for operations, owners would pay US$700–$800 monthly short term—but it would rectify neglected sewage, generator, and road elements, preventing catastrophic failures.
B. Deferral Until 2026
In 2025, CDAL only wants an operational US$497—omitting the ~US$305 for the Reserve. Hence, the urgent repairs remain undone until 2026 (or beyond), three years after the recommended window, compounding inflation and risk.
4. Rising Inflation and the Danger Through 2030
The Study presumes ~3% annual cost escalation. Pushing "urgent 2023–25" tasks to 2026–2030 means:
- Bigger Lump Sum: Sewage lines or generator replacements cost far more after years of deferral.
- Greater Probability of Emergencies: A single failing lift station or eroding seawall can force US$3k–$5k per-owner special assessments—far greater than the monthly fees saved in the interim.
- Potential Devaluation of Property: Infrastructure meltdown or massive emergency fees discourages buyers, lowering property values.
5. The "Interest-Free Loan" to the Community: Why Isn't CDAL Paying Its Negligence Bill?
"Immediate work includes repairing water supply issues, ordering a new generator (undermaintained beyond working life), reviewing essential sewage facilities… To pay for some urgent work, the new owners made an interest-free loan of US$800,000 to the community."
Legally, under British and Antiguan norms, the developer typically shoulders the backlog from its own prior neglect. Yet CDAL's "loan" suggests owners must pay it back—shifting the financial burden from the developer's negligence onto freeholders, even though the community entity is undefined and the Land Transfer covenant mandates owners be charged only for items directly benefiting their parcels, not for developer mismanagement.
6. Items to Exclude or Convert to Membership Fees
Under Antiguan and British law, charges must be "to and for the benefit" of each parcel. Many freeholders see these cost lines as developer expansions or optional amenities overshadowing the actual infrastructure backlog:
- Tennis/Pickleball/Pool Rent (~US$148K)
- Pool Maintenance (~US$30K), Sports Center Attendant
- Villas Maintenance (~US$40K)
- Bad Debt Expense (~US$288K)
- Monthly Fee for JHPOA (~US$36K)
Shifting these to a membership or user-based approach might let the monthly fee instead tackle urgent sewage, water, or electrical upgrades as demanded by the Reserve Study—plus it aligns with the covenant's direct-benefit principle.
7. Updated Forecast: Rolling 2023–25 Into One 2026 Megabill (with Inflation)
When Jolly Harbour defers all 2023–25 recommended "catch-up" to 2026, the lumps (plus the scheduled 2026 portion) become enormous under 3% inflation:
1. Original Reserve Contributions
- 2023: ~US$4.88M
- 2024: ~US$3.01M
- 2025: ~US$3.05M
- 2026: ~US$1.39M
2. Inflation Adjustment (~3%)
- 2023 sum delayed 3 years => ~US$5.33M
- 2024 sum delayed 2 years => ~US$3.20M
- 2025 sum delayed 1 year => ~US$3.14M
- Add 2026 sum (no extra inflation) => ~US$1.39M
- Total: ~US$13.06 million if done in a single 2026 blitz
3. Per-Unit in 2026
- ~833 freeholds, over 12 months => US$1308 monthly just for reserves
- Add an ops fee of ~US$500 => ~US$1808 total monthly CC
| Year | Deferred ('23–'25 + '26) | Reserve Portion (Monthly) | Ops (Monthly) | Total Monthly CC |
|---|---|---|---|---|
| 2026 | ~US$13.06M | ~US$1308 | ~US$500 | $1808 |
| 2027 | $1.435M (original) | ~US$144 | ~US$510 | $654 |
| 2028 | $1.478M (original) | ~US$148 | ~US$515 | $663 |
| 2029 | $1.523M (original) | ~US$152 | ~US$520 | $672 |
| 2030 | $1.568M (original) | ~US$157 | ~US$525 | $682 |
Caveat: This assumes CDAL solves the entire backlog in 2026. Delays or overruns may push actual fees higher.
8. Conclusion: CDAL's Negligence vs. Freeholders' Risk Under British & Antiguan Law
Under British case law (Waaler, Fluor Daniel) and Antiguan property statutes, a developer cannot freely shift extraordinary repair costs—stemming from its own under-maintenance—to freeholders. The Land Transfer covenant likewise states owners pay only for services benefiting their parcels. Yet CDAL is deferring essential 2023–25 repairs to 2026, prompting a US$13 million monster if all is tackled at once. The developer's mere US$800k "loan" fails to address the multi-million-dollar shortfall, leaving freeholders vulnerable to meltdown-level special assessments or monthly fees surging above US$1800.
Key Takeaways:
- CDAL Is Legally Responsible:
- British and Antiguan law assign the developer liability for decayed assets from prolonged negligence. Freeholders should not finance the developer's backlog.
- Short-Term "Savings," Long-Term Disaster:
- A US$497 fee in 2025, ignoring the Reserve Study, leads to bigger lumps plus inflation—and probable catastrophic system failures if fixes wait until 2026.
- Inflation Magnifies the Cost:
- Each year of deferral adds ~3%, so a $3M repair in 2023 becomes ~$3.28M by 2026.
- Owners' Right to Exclude Non-Essential Items:
- Tennis/Pickleball/Pool Rent, Villas Maintenance, Bad Debt Expense—these can be membership-based or cut from the universal CC.
- Soaring 2026 CC:
- Combining 2023–25 lumps with the 2026 portion could yield a ~US$1308 monthly reserve portion alone, plus ~$500 for operations = ~$1808 per owner monthly.
- Demand Accountability:
- CDAL, not freeholders, should bear the main cost of a backlog created by decades of inaction. Owners can leverage law and precedents (e.g., Waaler) to challenge developer-imposed fees that do not truly benefit their parcels.
In the end, the short-term "relief" of a US$497 monthly charge in 2025 is overshadowed by the looming avalanche of delayed repairs, inflated further each year. Freeholders should invoke their legal rights and highlight CDAL's responsibility to fund or facilitate these critical repairs, rather than foisting them onto owners through interest-free "loans" or inflated community charges.