The Origins of SMR

Skyline Mountain Resort was established in August 1965 under the name Sports Haven International as a private mountain recreation community dedicated to hunting, camping, and seasonal leisure. Members purchased non-deeded parcels where they could build cabins or camp while enjoying the beauty of the Manti-La Sal Mountains. Over time, the community expanded with amenities including a clubhouse, rental cabins, RV sites with hookups, a swimming pool, tennis courts, and eventually a 9-hole golf course completed in 2005. In 2015, individual deeds were issued to members, formalizing lot ownership. What began as a seasonal mountain resort has since evolved into a vibrant and diverse community that continues to serve hundreds of seasonal property owners while also supporting a substantial and growing population of full-time owners.

Over the years, the community has evolved, but its governing structure has remained largely unchanged. Today, a single homeowners association is responsible for managing three fundamentally different functions:

Seasonal Community

Full-time Community

Resort Administration and Operations

While this model may have been appropriate when Skyline was first established, the community has grown and evolved significantly over the years. Rather than relying on a single organization to govern every aspect of Skyline Mountain Resort, this draft establishes separate entities that work together under one Master Association—Skyline Mountain Resort Corporation—creating a governance structure that is more transparent, accountable, and better suited to the community's future.

Skyline Mountain Resort Governance Reorganization

The proposed governance reorganization retains the existing Skyline Mountain Resort Corporation as the Master Association while establishing two sub-associations: the Seasonal HOA and the Full-Time HOA. This structure preserves Skyline Mountain Resort as one unified community, protects each lot owner's shared ownership interest in the Resort's amenities, and creates a governance framework where each Sub-HOA can independently manage the needs, priorities, and services specific to its respective community.

Under this structure, the Skyline Mountain Resort Corporation would continue to own the Resort's shared amenities and infrastructure, including the golf course, swimming pool, cabins, RV park, main roads, unsold lots, and other common assets. Existing deeds, easements, and ownership interests would remain unchanged. The Corporation would be governed by a Board of Directors appointed by the Seasonal and Full-Time Sub-HOAs in proportion to their membership. The Board would establish policies, approve budgets, and provide oversight, while the day-to-day operation and management of the Resort would be conducted through the operating structure determined by the Board, which may include a professional Management Company, an employed General Manager, or another appropriate management model. All operations would be conducted in accordance with the policies, strategic direction, and financial guidelines established by the combined appointed Board members from the Seasonal and Full-Time Directors and governing documents.

The Seasonal and Full-Time Sub-HOAs would each operate as separate Utah nonprofit homeowners associations with their own boards of directors, governing documents, budgets, assessments, and financial management. Each lot owner would retain membership in the Master Association while also belonging to one of two sub-associations—the Seasonal HOA or the Full-Time HOA—based upon the location of the lot within the established boundary. The Master Association would manage the ownership and operation of the Resort's shared amenities, while each Sub-HOA would govern and finance the services and priorities specific to its own respective community.

Financial Transparency, Accountability, and Risk Management

One of the greatest benefits of reorganizing Skyline Mountain Resort is the ability to clearly separate the finances and responsibilities of the resort business from those of the two residential communities.

Today, the operating costs associated with the resort's commercial amenities—including the golf course, swimming pool, cabins, RV park, and other shared facilities—are blended with the costs of governing the residential community. This makes it difficult for property owners to clearly understand how assessment dollars are being spent and what it actually costs to operate each part of Skyline Mountain Resort.

Under the proposed governance structure, each organization would maintain its own independent budget, financial statements, and operational responsibilities:

The Resort Corporation would operate as a business, with its own revenues, operating expenses, capital improvements, insurance, and financial reporting.

The Seasonal HOA would govern and maintain the Seasonal community, managing its own services, infrastructure, reserves, and residential responsibilities while sharing ownership, oversight, and funding responsibilities for the Resort Corporation through the Master Association.

The Full-Time HOA would govern and maintain the Full-Time community, managing its own services, infrastructure, reserves, and residential responsibilities while sharing ownership, oversight, and funding responsibilities for the Resort Corporation through the Master Association.

Separating the Resort Corporation creates a stronger legal and financial separation between commercial resort operations and residential governance. The Resort Corporation would assume responsibility for the financial obligations, insurance, and risks associated with the resort amenities, while each HOA would focus exclusively on serving its residential members. This structure is intended to provide the residential HOAs with significantly greater protection by isolating commercial liabilities and reducing homeowners' exposure to lawsuits and claims arising from resort operations.

This separation creates greater transparency, stronger financial accountability, and more informed decision-making. Property owners would be able to clearly see what it costs to operate the resort amenities, what it costs to maintain each residential community, and how every assessment dollar is being used.

Funding and Cost Allocation

The Master Association would maintain its own budget and financial records separate from those of the Seasonal and Full-Time Sub-HOAs. Resort operating revenues would first be used to fund the operation, maintenance, and reserve requirements of the Resort's shared amenities.

If Resort revenues are insufficient, the Master Association would assess each Sub-HOA for its proportional share of the funding shortfall based on the number of lots within each association. Each Sub-HOA would then determine how to fund its obligation in accordance with its own governing documents and financial policies.

Once all operating expenses and financial obligations of the Master Association have been met, any discretionary capital funds or operating surpluses would be divided according to the proportional ownership interests of the Seasonal and Full-Time HOAs, rather than being controlled solely by the majority of the Master Board. Each Sub-HOA would determine how its share is invested in capital improvements and other approved community priorities.

The Skyline Mountain Resort Corporation (Master Association), would continue to retain ownership of all unsold lots within the Resort. The Seasonal HOA and Full-Time HOA would not own individual unsold lots.

The Master Association would be responsible for managing and selling unsold lots as appropriate. Proceeds from future lot sales would remain assets of the Master Association. After satisfying any applicable obligations established by the Master Association, the use of the remaining proceeds would not be determined solely by majority vote of the Master Board. Instead, those funds would be designated according to the proportional ownership interests of the Seasonal and Full-Time HOAs, with each Sub-HOA determining how its proportional share is invested in approved capital improvements and other community priorities.

This allocation structure ensures that the use of proceeds from lot sales, as well as other discretionary funds, is not determined solely by the majority Board representation. Instead, each community retains meaningful influence over the portion of funds attributable to its ownership interest.

This approach preserves the benefits of unified ownership under the Master Association while ensuring that both communities have a fair and equitable voice in decisions involving the future investment and use of shared assets.

Community Infrastructure Management and Financial Responsibility

Each Sub-HOA would be responsible for managing and maintaining the roads and related infrastructure within its respective boundaries. This includes snow removal, grading, road improvements, dust control measures such as mag chloride application, paving projects, and other necessary maintenance.

Each Sub-HOA would establish its own assessments, collect dues from its members and the Sub-HOA Board would determine how those funds are used to support its community priorities and infrastructure needs. This allows each community to set appropriate service levels and make decisions based on the needs of its members.

Each Sub-HOA would also maintain a proportional financial obligation to support the Skyline Mountain Resort Corporation (Master Association) when Resort operations, shared amenities, or major capital needs require additional funding beyond available Resort revenues. Any funding shortfall would be allocated according to the proportional ownership interests of the Seasonal and Full-Time communities, with each Sub-HOA responsible for collecting its share from its members.

This structure provides clear accountability by allowing each Sub-HOA to manage its own needs while ensuring that all members continue to support the shared Resort assets they collectively enjoy.

Shared Infrastructure, Access, and Operations

Certain infrastructure, services, and amenities within Skyline Mountain Resort serve the entire community and require coordinated management across the Master Association, Seasonal HOA, and Full-Time HOA. These shared resources include main access roads, gated entries, waste disposal areas, burn piles, designated recreational access routes, and other common-use facilities.

To ensure continued access, fairness, safety, and operational consistency, these shared resources would be managed through formal agreements established by the Master Association and the sub-associations collectively. These agreements would clearly define access rights, maintenance responsibilities, cost-sharing arrangements, and procedures for resolving disputes while preserving the ability of all members to continue enjoying the shared benefits of Skyline Mountain Resort.

This governance structure would preserve access throughout Skyline Mountain Resort, allowing members to continue using shared amenities, roads, trails, and recreational areas regardless of whether they are located within the Seasonal or Full-Time HOA boundaries.