HHI-developer subsidies?

[ldo]

I just got my DVC-HHI add-on docs from DVC to sign. They refer to a developer subsidy for annual fees thru 12/2012 and a devloper subsidy of reserves thru 12/2011. Does anyone know how much those subsidies were? I want to make sure that my dues don't go up a lot after 2012. thanks, Elaine

 

[erionm]

For HHI, the only thing I'm aware of is a Developer Loan Payment of .1303/point.

http://dvcnews.com/index.php/dvc-program/financial/2012-resort-budgets

 

[ldo]

no, there was definitely reference to a subsidy. I just read the docs today. The annual dues are capped at $4.27 thru 12/2012 and annual contributions to reserves were capped at $1.259 thru 12/2011, with a statement that the developer would "subsidize" any extra operating/reserve cost over that amount. Now, it might be that the capped amount was enough for the operating amount, so the subsidy was zero. But, before I sign on the dotted line, I thought I'd ask. I don't know what reseves should be--but the collected amount as of 2010 was about 1/2 of the replacment cost of things. I wopuld be interested if anyone has the reserves for another DVC property to see if it is also about 1/2?

 

[RobDoc]

I think that is referring to the verbage in most of the DVC resorts that allows DVC not to pay any maintenance fees as long as they agree to a developer subsidy to cover any expenses over the budgeted amount.

While a resort is in active sales (like AKV and BLT) there is a developer subsidy to cover the expenses that the owners will be responsible for in their dues. Until the resort has sold out, DVD agrees to cover the share of those costs so that early buyers are not footing the entire bill (things like transportation, housekeeping, pools, etc.). That is the reason for the two fees at VB - where early buyers were guaranteed a subsidy from DVD for projects never completed across the road. After a couple of years, the subsidy was discontinued for future buyers but is still in place for those early buyers and their successors.

The loan repayment will end this year and will reduce the 2013 dues by the amount of the loan repayment, but that is not part of the mentioned subsidy.

 

[ldo]

thanks, Doc. That makes sense. Elaine

 

[CMOORE185]

A few years back our dues at HHI went up, supposedly temporarily, to renovate before it is was planned. I think that temporary increase is suppose to end in 2012 and our dues should actually get lower.

 

[RobDoc]

A few years back our dues at HHI went up, supposedly temporarily, to renovate before it is was planned. I think that temporary increase is suppose to end in 2012 and our dues should actually get lower.

The loan repayment amounts to $0.1303/point. While it will be nice to get that off the books, it will not likely offset increases in other areas. I don't expect the HH fees to be lower, just lower than they otherwise might have been.

Stay tuned!

 

[CMOORE185]

The loan repayment amounts to $0.1303/point. While it will be nice to get that off the books, it will not likely offset increases in other areas. I don't expect the HH fees to be lower, just lower than they otherwise might have been.

Stay tuned!

That is correct, thanks for the clarification.