Analysis of CMV Special Assessment

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

I am posting this both on the CMV HOA forum and in the BlueGreen forum, because owners are deeded directly and others who own points in "pass-through" trust funds will be directly affected by this (Trust Fund E is not a "pass-through," but E owners will be indirectly affected).

The source of this information is the three-part FAQ posted at the CMV Renovations Information page.

Synopsis: According to Bluegreen's numbers, there is a discrepancy of 31-91% between the numbers they say they will need in total assessments and the amount they state they will be assessing individual intervals. For example, BG says the total assessment for Campground (read: cottage) renovations will be $4M-$5M, and they state that they plan to assess intervals $1,200-$1,300 each. As the table in the attached PDF file shows, considering the low-end estimates of $4 million and $1,200/interval, with 118 Cottages and assuming 50 intervals per year, this represents a 77% discrepancy (the calculated cost per interval is $678, and $1,200 - 678 = $522, and 522 is 77% of 678). The only assumption I have made here is the number of intervals per unit per year (at 50). $1,200 is the amount per interval if there are only 33 intervals being charged. This raises the question as to how BG got their estimated numbers; are they including developer-owned intervals in the pool to be charged? The FAQ says they've included those weeks owned by BGVC (i.e., points owners), but does not say anything about developer-owned weeks.

[sherze Junior Member Find all posts View Profile Close sherze]

When I look at my UDI cottage deed it only lists one unit that I am deeded. The undivided interest gives me the right to book other weeks but I am not deeded those weeks.

One question might be....How many deeded weeks were sold for each UDI cottage?

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

When I look at my UDI cottage deed it only lists one unit that I am deeded. The undivided interest gives me the right to book other weeks but I am not deeded those weeks.

One question might be....How many deeded weeks were sold for each UDI cottage?

It lists one unit, but three weeks for that unit (or I believe it should): 1 red, two non-red. Bruce is the real UDI expert, but I believe there were 17 UDIs sold per cottage (or 51 weeks/year), with 1 week held out for maintenance.

UDIs can't explain the discrepancy, because there are no UDIs in the Villas HOA, and those are off too.

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

....Synopsis: According to Bluegreen's numbers, there is a discrepancy of 31-91% between the numbers they say they will need in total assessments and the amount they state they will be assessing individual intervals. For example, BG says the total assessment for Campground (read: cottage) renovations will be $4M-$5M, and they state that they plan to assess intervals $1,200-$1,300 each....

Steve, I think you are misreading the FAQ. The FAQ says:
Bluegreen Vacation Club – the largest owner of intervals in the association – will pay their share of assessments, for each interval it owns, just as any individual owner is obligated to do. For our association it is anticipated the Bluegreen assessments will amount to approximately $4-$5 million dollars.

So, what the FAQ says is that Bluegreen will be paying $4-$5 million for assessments for intervals that are part of the Bluegreen Vacation Club. The whole project costs considerably more than $4-$5 million. $4-$5 million is merely Bluegreen's own share of the project.

At any rate, I am not a happy camper. (Um, no pun intended.) I recently bought a UDI, and my Bluegreen ownership was registered just days ago. Now, there's this huge special assessment. Ugh! I suspect UDI owners will be asked to pay for three intervals worth of the special assessment--that is, $3600 to $3900- because there are 17 UDI owners per year. Any thoughts from other UDI owners? How were UDI owners assessed during the last special assessment?

Do CMV owners still get to vote on any of this, or is this a done deal? I mean, the model looks nice--but $60,000 to renovate those little cottages? Plus some funds from the reserves???

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

I see your point.

Hmm. $4,000,000 / 1,200 = 3333 intervals. At 51 intervals / cottage (17 UDIs per cottage), that means BG owns 65 or so cottages out of the 118, leaving 53 to be owned by us.

If this is correct, the bad news is that BG owns more than 50% of the campground inventory, so even if every one of us banded together and voted against this assessment, BG can still force it through.