Elk Run Property Owners Association, Inc.

Elk Run Property Owners Association, Inc. is mid-way through a court-supervised Subchapter V liquidation of its Pagosa Springs timeshare campus, with a stalking-horse bidder designated, a § 363(h) sale adversary underway, and a liquidation plan on file but not yet confirmed. The Colorado nonprofit manages the 18-unit, 936-interval-week Elk Run Townhouses and filed under Chapter 11 Subchapter V on January 20, 2026 alongside two affiliated Pagosa Springs timeshare associations—Village Pointe and Masters Place Condominiums—that share counsel and a common sell-and-wind-down strategy (Subchapter V Voluntary PetitionDkt. 1).

The case was driven by a reserve-funding gap rather than operating debt: a 2025 reserve study projected roughly $5.3 million in 2025–2029 repairs and capital improvements, while projected reserve-fee increases of 16.5% for 2026 and about 32% annually through 2029 were judged unsustainable for an owner base already carrying 68 delinquencies totaling $189,344.85. Members had prepetition authorized suspension of 2026 maintenance fees and a waiver of 2026 reserve funding, and the board committed to selling the property and terminating the timeshare regime (Declaration of LuAnn BleaDkt. 13).

To execute that exit, Elk Run obtained a May 13, 2026 bid-procedures order authorizing marketing of the Property and then filed an adversary proceeding under 11 U.S.C. § 363(h) to sell the entire campus free and clear of the Debtor's and co-owners' fractional interval interests, with those interests attaching to net sale proceeds (§ 363(h) sale complaintDkt. 160). The court subsequently approved designation of the Town of Pagosa Springs as stalking horse bidder, with bid protections including a 3% breakup fee of $72,981 and up to $30,000 in expense reimbursement ().