Has DVC levied any Special Assessments?

[Nahanni]

Still working on DW to consider purchasing DVC so I'm trying to figure out worst case financial scenarios, without sounding scary.

Does anyone know if there has ever been a "special assessment" fee at a DVC resort (for uninsured losses)? Is there any definition or maximum amount specified in ownership documents (DW worries about unlimited liability)? Would it be resort specific (I'm thinking some locations may be more at risk)?

Do members receive an annual financial report letting them see the contingency fund and how it is projected to be allocated (e.g. renovations)?

For perspective, I think the maximum annual fee increase allowed is 6% and that's the number we're using (despite current increase around 3%).

Thanks.

 

[DebbieB]

Still working on DW to consider purchasing DVC so I'm trying to figure out worst case financial scenarios, without sounding scary.

Does anyone know if there has ever been a "special assessment" fee at a DVC resort (for uninsured losses)? Is there any definition or maximum amount specified in ownership documents (DW worries about unlimited liability)? Would it be resort specific (I'm thinking some locations may be more at risk)?

Do members receive an annual financial report letting them see the contingency fund and how it is projected to be allocated (e.g. renovations)?

For perspective, I think the maximum annual fee increase allowed is 6% and that's the number we're using (despite current increase around 3%).

Thanks.

Not that I know of. The maximum annual fee increase is 15%, not including property taxes.

Members receive an operating budget at the end of the year for the following year and it also shows how much is in the reserve funds for improvements.

 

[RobDoc]

Still working on DW to consider purchasing DVC so I'm trying to figure out worst case financial scenarios, without sounding scary.

Does anyone know if there has ever been a "special assessment" fee at a DVC resort (for uninsured losses)? Is there any definition or maximum amount specified in ownership documents (DW worries about unlimited liability)? Would it be resort specific (I'm thinking some locations may be more at risk)?

Do members receive an annual financial report letting them see the contingency fund and how it is projected to be allocated (e.g. renovations)?

For perspective, I think the maximum annual fee increase allowed is 6% and that's the number we're using (despite current increase around 3%).

Thanks.

No DVC resort has ever had a "special assessment" for uninsured losses. There is a maximum allowable increase - 15% without including ad valorem property taxes - without member approval. Any such increase would be resort specific.

HH had an increase a few years ago created when it was necessary to dip into the Capital Reserve fund for some repairs that were needed earlier than originally planned. DVC loaned the funds to HH owners and that loan will be paid back at the end of 2012 (... and the dues should reflect that payoff in 2013). Even when VB suffered some hurricane damage, no assessment was made for repairs.

Technically, OKW ownerss did have an assessment when DVD decided to extend the life of the resort from 2042 to 2057. They did this by allowing OKW owners to accept the extension by paying $25 per point (with a $10 discount) for the extension or by legally declining the extension, signing that right back to DVD. To my knowledge no OKW owners were actuially forced to pay an assessment, but supposedly that could have been done had they not signed over the extension deed.

The Capital Reserve Budget is included in the annual report for each resort and I believe onwers may request a line item breakdown of that report beyond the summary provided.