I think you agree with me it doesn’t say they have the authority to balance demand across units. The difference is I think you believe that ambiguity is an allowance to make the change as nothing explicitly restricts them. My understanding is when a contract has specific language enumerating the authority they have to rebalance point charts with specific clauses described (seasonal demand, end of concierge) that’s the limit of authority granted. It does not implicitly allow similar undesecribed changes and in fact the lack of explicit authority granted to make the other changes after explicitly describing authority to make similar changes is evidence they do not have the authority.
That said, id still like your take on how this works for changes that directly impact the percent ownership I have of a specific deeded unit. Arguing to the extreme would you agree they couldn’t intentionally sell new units with inflated point charts with plan to sell more points and later rebalance across units? I would think this limitation would obviously not be allowed but cannot think of any justification for why it wouldn’t be if they are able to just later rebalance across units as you describe here
The example I gave was in specific reference to CL in that the contract made clear that CL always would be more and the that if CL went away, those extra points would be redistributed back.
In order for them to go back somewhere and leave CL, it means they are not assigned to the CL rooms to begin with. It is a unique situation which may have played a role in what we see in the 2027 charts.
Now, in the other case, I can’t seem to find anyting that discusses the 1:1 balance for use other than when discussing what can be sold.
Nothing to do with balances for the purposes of booking as long as the total points remain the same…or as close as possible when a reallocation occurs.
Because the POS uses both vacation home and then unit, I think it’s a bit contradictory and why it isn’t clear to me…which is why I only lean they can balance at the resort level for bookings but not for sale…which is why if they ROFR a contract, they can’t put those points back into any other unit then where they came from, even if it means they don’t have enough to make a contract to sell.
I personally don’t think the reallocation of points in the charts we use for booking change ownership interests at all.
When there is a leap year, you add one days worth of points to the system that are not tied to any specific unit.
The lock off premium is another factor. Since points are sold based on the 2 bedroom values, those points aren’t necessarily accounted for in the ownership interest % because the points attributed to the lock off were never sold, yet are in the chart.
From my understanding, for example, let’s say a unit has fivie two bedroom lock offs and lets just use one Use Day for booking.
They assign and sell 250 points…50 points per unit.
But, the lock off premium adds points to that unit, but those points are not sold, so don’t impact the % of ownership, but they do add to the
point chart.
Those lock off premium points can be shifted around to a certain degree. VGF doesnt even require them to balance them…they can increase or decrease without having to balance elsewhere…not sure about others
Same is true for the years where a travel period has more Friday/Saturdays than what was used to create the chart. It will add points, but because they were not sold, an ownership interest % is not changed.
Now, can they add new inventory and then reallocate across the whole resort? Some say no and some say yes.
My opinion is I am really not sure…I slightly lean they can because those new points comes with inventory but wouldn’t bet on that position.
DVCC obviously believes they have the ability to adjust across a resort based on supply and demand and owners needs because they have done it with the treehouses, and with the sections of preferred and standard to SSR.
It’s never been legally tested.
As long as they don’t sell more points than what the unit has, then % of ownership, IMO, doesn’t change, even if for that year, there are technically a few extra points…the calendar and rounding will do that.
An example of rounding thst can add a few points.
Lets say there are 68 studios across all the units and they sold 1000 points assigned to them.
Now, they want to make it 15 points a night. . That comes to 1020..20 extra…but at 14 points a night, now you have only 952 points.
Which won’t work because you have sold 1000 points. So, they have to go with the 15 points a night vs 14 points a night…but it creates that 20 points.
The definitely have an obligation to try and set it as close to even as possible, but this is how you might get a few extra points here or there, because units were not all created with the same number of rooms and room sizes.
You might have a GV and 2 bedroom in one unit but another unit is just the GV…if they raise the 2 bedroom, then the GV in that unit has to go down to stay point neutral.
But, the unit with only one GV can’t go down, because then you have points missing from the chart…so, they may need to do a bit of jenga, which is another way you could end up with a few extra.
We have to be sure to compare to the base year used and not just the previous year.
Another example….one year there are 5 Fridays but the next year only 4 in a specific travel period
Even if they don’t change the nightly point amount, the extra points from the year when there were 5 will now be gone and it will be a decrease without looking like it.
I admit, I don’t analyze the charts in that much depth and because I am not confident that they can’t balance at the resort level, it’s not something id contact
DVC about unless it was major.
Having said all this, if you believe the charts have more points above and beyond the normal variables that can happen, then I’d reach out to DVC to ask for someone to call and help go through it.
If the extra points that are in a chart, for me, are less than .001% off, I consider that balanced.