Troon Suitability for SLCC
- Jul 2
- 4 min read
Troon Suitability for SLCC as HOA Management Company
6/4/26
If the board votes for Troon, they are effectively taking the position that they are willing to subordinate Sun Lakes' risk to their willingness to take on the risk! This might be acceptable, if they were able to personally indemnify SLCC against the risk, but they are not. This mentality is completely contrary to the notion of being fiduciary.
Aside from Burkel, Tasko, and Katz not possessing the credentials or experience to warrant such a risk, no experienced CEO or person with fiduciary responsibility would dare to do so. This is appears to be about ego and vanity more than being risk adverse which is the role of a fiduciary.
The following question was posed to AI (Chatpgt Pro):
How important is it for an HOA management company of a 55+ CA HOA of the size and scope of Sun Lakes Country Club Banning, CA to have extensive experience in CA? The company in question is Troon who only recently acquired an HOA management company operating on the east coast.
The following is the AI response:
For a massive, high-amenity 55+ community like Sun Lakes Country Club in Banning, California, having extensive experience in California is absolutely critical. [1, 2]
While a company like Troon excels at golf course operations and hospitality-focused management, navigating the legal and operational landscape of California Homeowners Associations is incredibly distinct from managing communities on the East Coast. [3, 4]
The reasons California experience is non-negotiable for an HOA of this scale can be broken down into specific legal, structural, and geographic categories.
The Davis-Stirling Act and CA Regulatory Burden
California HOAs are governed by the Davis-Stirling Common Interest Development Act, which is widely considered the most complex, consumer-protective, and highly litigated set of HOA laws in the United States. A management company without a deep footprint in California faces a steep learning curve regarding: [5, 6]
The Annual Budget Disclosures: California law dictates exact formulas and strict timelines for distributing financial packages, insurance summaries, and reserve funding plans to homeowners. [7]
Election Rules (SB 323 / SB 432): California imposes aggressive, multi-month timelines, mandatory independent inspectors, and strict candidate qualifications for board elections. Violating these can instantly void an entire election.
The Open Meeting Act: CA strictly limits what a board can discuss via email or executive session. Every meeting agenda must be posted exactly 4 days in advance, with no late additions allowed. [8]
Corporate Finance, Reserve Studies, and Insurance
Managing a community with 3,300 homes, 2 golf courses, and 3 clubhouses requires managing millions of dollars in capital. California treats these funds uniquely: [1]
Mandatory Triennial Reserves: Under California law, a physical, on-site reserve study update must be performed every three years to project the lifespan of major assets (like clubhouse roofs and golf course irrigation). [1, 9]
The CA Insurance Crisis: Finding Master Association Property and Liability Insurance in California is a logistical nightmare. An out-of-state manager will lack established relationships with specialized CA insurance brokers who understand wildfire risk mitigation and FAIR Plan placements. [10]
Strict Fee Limitations: CA law caps regular assessment increases at 20% per year and special assessments at 5% without a full vote of the membership. [11, 12]
🏌️ Asset Dynamics: Golf, Hospitality, vs. HOA Legalities
This is where the dynamic between Troon and Sun Lakes becomes nuanced. Troon's acquisition of Florida-based ICON Management Services combined Troon's world-class golf operational expertise with an established HOA framework. [3, 13]
Troon’s Strength: They understand golf course agronomy, clubhouse restaurant logistics, pro-shop retail, and hospitality.
The Risk: In states like Florida, golf/amenity districts are often structured differently (e.g., Community Development Districts or CDDs) compared to California's strict Nonprofit Mutual Benefit Corporation structure. If Troon relies on out-of-state executive structures to guide the Sun Lakes Board, they risk exposing the community to compliance lawsuits. [4, 14]
Senior Community Rules (Federal vs. State Housing Laws)
Sun Lakes is an active adult 55+ community. To protect its senior housing status under the Federal Fair Housing Act and California’s Unruh Civil Rights Act, the HOA must enforce age-verification compliance. [1, 15]
Management must conduct regular, legally compliant age surveys of residents.
An inexperienced management team could easily misstep when dealing with "qualified permanent residents," permitted healthcare residents, or underage hardship exemptions, inviting fair housing discrimination lawsuits.
🔍 Questions the Sun Lakes Board Must Ask Troon
If Sun Lakes is vetting Troon, the Board should not just look at the corporate headquarters. They need to look at the regional team: [17, 18]
"Who is the specific, designated On-Site General Manager?" Ensure this person holds a CCAM (Certified Community Association Manager) designation specifically for California or a PCAM (Portfolio Community Association Manager) with years of local experience.
"Where is your legal and regional backup team located?" If the regional supervisors and HR support are based in Scottsdale or Florida, local compliance will suffer. [19, 20]
"How will you integrate California-specific HOA software?" Ensure their accounting portals seamlessly calculate and format financials to comply with CA Civ. Code requirements, rather than utilizing generalized East Coast templates. [21]
If Troon can guarantee an on-site team of veteran California-trained professionals backed by their massive corporate hospitality resources, the partnership could be highly successful. However, if they try to manage Sun Lakes using out-of-state playbooks, the association will likely face severe operational and regulatory friction.
[13] https://troon.com
[14] https://oag.ca.gov
[18] https://echo-ca.org