Major Special Assessments Amounts

[tabbyc Senior Member Find all posts View Profile Close tabbyc]

Polo Towers’ owners were recently hit with a $1,800 special assessment (this was in addition to their $820 yearly fees.)

Sheraton Vistana Fountains owners were recently levied an $1100 special assessment (this was in addition to their $599 yearly fees)

Sand Castle Cove owners were hit with a $500 special assessment (this was in addition to their $499 yearly fees.)

Are their other owners as unlucky as me?
What were your payment options and the amounts you have paid?
Does anyone know about the Tahoe Seasons major assessment?

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

I much prefer the practice, admittingly only used by a minority of HOA's, where a special assessment has to be voted on by all members, not just the board. If a special assessment is really needed, then in that situation it always gets very thoroughly explained in order to get members to vote for it, and consequnetly tends to pass easily because members understand it. It also means the board doesn't put up an unnecessary SA.

[1950bing Senior Member Find all posts View Profile Close 1950bing]

Another thorn !

[timeos2 Senior Member Find all posts View Profile Close timeos2]

Voting isn't the key

I much prefer the practice, admittingly only used by a minority of HOA's, where a special assessment has to be voted on by all members, not just the board. If a special assessment is really needed, then in that situation it always gets very thoroughly explained in order to get members to vote for it, and consequnetly tends to pass easily because members understand it. It also means the board doesn't put up an unnecessary SA.

Unless a buyer specifically picks a resort because it has the provision that any Special Assessment requires a full owner vote then it is the Board, who represents all owners, that gets to make that call. Most buyers don't know enough to ask or read to find that out and nearly all aren't going to pass on a resort they like simply because any possible SA doesn't require an owner vote.

Developer Boards do tend to use SA as just another finance tool while Owner controlled Boards tend to use it as a last resort. In any case it should be fully justified and the root cause (past delinquencies, under funding of operations and/or reserves, or what ever created the need) also needs to be addressed or there are likely to be more SA's in that resorts future. as always get the whole story and try to elect Board members that make the long term health of the resort their priority.

Simply having all owners vs the Board vote on any SA does nothing to guarantee it is being handled right and problems addressed. In fact it may lead to under funding (again) as people want a "lower" SA and end up not even fixing the current issues. Proper operation and fee collection is the key not how a SA gets approved.

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

Polo Towers’ owners were recently hit with a $1,800 special assessment (this was in addition to their $820 yearly fees.)

Sheraton Vistana Fountains owners were recently levied an $1100 special assessment (this was in addition to their $599 yearly fees)

Sand Castle Cove owners were hit with a $500 special assessment (this was in addition to their $499 yearly fees.)

Are their other owners as unlucky as me?
What were your payment options and the amounts you have paid?
Does anyone know about the Tahoe Seasons major assessment?

The PT's SA wasn't nearly that large. It was more like $1,100. Still bad enough but not as bad as $1,800.

Part of the problem with some resorts is that they do not plan well enough for the future but try to appease owners now. In PT's case, the HOA/BOD is only putting $45 into the cash reserve fund. Compare that with HGVC and Marriott who both put in amounts over $100 and in some cases significantly more.

Furthermore, Polo Towers did not plan ahead thinking that the style or decor might need to be renovated in the future. While some resort management groups plan on complete renovations every 10 to 15 years, others just wait until it "happens" and then try to figure out to come up with the money.

Homeownership is much the same. I know full well that my roof is 9 years old and will most likely need to be replaced before it's 15 years old (contractor did not use the best materials). I also know that my house will need to be repainted every 10 to 15 years depending on the quality of the paint (both inside and out), that carpet has a life span as does my deck and my privacy fence.

Now I can either plan to those events or just wait for them to happen and see if I can come up with the cash on short notice or do like what many other people do........use credit. HOA/DOD's don't have a credit card or home equity line of credit they can just whip out for such occurances. It's going to come from the owners.

What is unlike your home is that timeshares should keep up with industry standards for decoration and comfort. 15 years ago an big screen projection television was the top of the line. Todday it's plasma TV's. At one point a shower/tub combo was fine. Now people prefer them seperate and many want that jetted tub. Perhaps 10 or 15 years ago having a laundry facility on site was adaquate but now people prefer the convenience of having the washer/dry in the unit. It take foresight to see potential changes and it takes a proper reserve to fullfill those future needs for owners.

Because of this, owners would be well advised to be certain their HOA has a plan and is collecting enough in the cash reserve to accomplish those plans. Not just at today's $$ but with a mind towards inflation. A properly run resort should be able to get a good estimate and avoid such large SA's. Unfortunately, Polo Towers is still only collecting $45 for their cash reserves. Barely enough to replace the necessary items but not nearly enough for the next needed renovation to keep up with newer resorts and maintain an excellent exchange value. So, in another 15 years I see us (owners at Polo Towers) in the same boat as we were last year. Only then it's likely to be a much higher figure to bring the resort back up to current industry standards.

[tabbyc Senior Member Find all posts View Profile Close tabbyc]

Corrected Assessment Amounts

I was mistaken, these are the correct amounts:

Polo Towers’ owners were recently hit with an $1180.00 special assessment (this was in addition to their $820.00 yearly fees.)

Sheraton Vistana Fountains owners were recently levied an $1100.00 special assessment (this was in addition to their $705.00 yearly fees.)

Sand Castle Cove owners were hit with a $250.00 special assessment (this was in addition to their $499.00 yearly fees.)

Apologies

[Lisa P Senior Member Find all posts View Profile Close Lisa P]

As a Sandcastle Cove owner, I'm glad the $250.00 SA was split over 2 years, $125 in 2008 and $125 in 2009. We've had low MFs there for a long time and perhaps, starting in the 2010 year, they need to approve a little increase in the MF to allow for a larger reserve to accummulate. I'd rather pay an extra $30-$50/year and avoid a surprise SA. Of course, that's just me.

[shaggy Moderator Find all posts View Profile Close shaggy]

I just got hit with a $250 sa for VRI/Mrop which I paid . The worst one I got was at the Yachtsman , over $1,ooo but I sold my week and she knew it was happening!! Last year I got hit with an assesment at Highlands of Sugar which I again paid. If I get hit with another big assesment I'm going to let them keep it. shaggy

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

I was mistaken, these are the correct amounts:

Polo Towers’ owners were recently hit with an $1180.00 special assessment (this was in addition to their $820.00 yearly fees.)

Sheraton Vistana Fountains owners were recently levied an $1100.00 special assessment (this was in addition to their $705.00 yearly fees.)

Sand Castle Cove owners were hit with a $250.00 special assessment (this was in addition to their $499.00 yearly fees.)

Apologies

As I said, the problem is that HOA's try to appease owners by keeping MF's down lower than they should be. This results in inadaquate cash reserves for major renovations or unforseen financial burdens.

In Polo Towers case, they're putting in less than $50 for the cash reserve. If they'd have been putting in $100 or $50 more then the SA would not have been necessary. PT's opened in 1992. $50 X 17 years would have been $850 plus whatever interest would have been earned on that interest. The original suggested SA two years before the one that was approved was for $800 and change.

Proper management can avoid most large SA's. Cutting corners is just asking for a trouble and that trouble gets paid for with a large SA.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

Special assessments are an indication of past mismanagement. Competent management would know the status of reserves and make adjustments in the annual MFs. The only excuse is a major catastrophe, but even then there should be sufficient insurance and reserves to cover losses.