Is there a cap on how much Disney can increase annual maintenance fees?

[JessLCH]

If so, what is it, and does it vary from home resort to home resort? I know the annual dues vary, but I am wondering if there is a maximum percentage they are allowed to increase. Any other nuances I should know about increasing annual dues? In process of purchasing BLT resale. I know annual dues are currently $4.50.

 

[CarolMN]

Yes. I believe it is 15% per year, outside of property taxes.

It's not been that much. Dues are also limited to actual operating expenses.

Annual Maintenance Fee History

 

[JessLCH]

Yes. I believe it is 15% per year, outside of property taxes.

It's not been that much. Dues are also limited to actual operating expenses.

Annual Maintenance Fee History

Can you clarify "outside of property taxes?" In process of our first purchase (resale) and have no contract yet, just an accepted offer. I was under the impression the only fees were the annual maintenance dues. Are there also taxes due annually on top of that? Please explain what I will be obligated to pay in terms of property taxes. This is the first time I am hearing about this.

 

[hakepb]

Property taxes are one of the larger line items included in the above annual dues chart.
If you itemize US income taxes, it is posdible to deduct the property tax part of your annual dues. (You get an annual statement)

Because of low resale values, SSR's property value went down, resulting in lower property taxes. Because of the lower property taxes, SSR dues did not increase as much as some other resorts like BLT.

Basically, if FL govt increases WDW property taxes by 100% you have to pay your portion, even if that results in total dues increasing more than 15%

Also, it is possible for a resort to charge a special assessment if a major, unexpected repair was needed. This has never happened at WDW, but might of happened at Vero.

 

[JessLCH]

Also are they allowed to do "special assessments" for major renovations over the years like a condo would when they need to, say, replace a roof or do major rooom renovations, etc.?

 

[JessLCH]

Property taxes are one of the larger line items included in the above annual dues chart.
If you itemize US income taxes, it is posdible to deduct the property tax part of your annual dues. (You get an annual statement)

Because of low resale values, SSR's property value went down, resulting in lower property taxes. Because of the lower property taxes, SSR dues did not increase as much as some other resorts like BLT.

Basically, if FL govt increases WDW property taxes by 100% you have to pay your portion, even if that results in total dues increasing more than 15%

Also, it is possible for a resort to charge a special assessment if a major, unexpected repair was needed. This has never happened at WDW, but might of happened at Vero.

You anticipated my question about special assessments as I was asking it! Would something like a new roof or furiture replacement count as a "special assessment?"

 

[hakepb]

Also are they allowed to do "special assessments" for major renovations over the years like a condo would when they need to, say, replace a roof or do major rooom renovations, etc.?

There is a capital improvements fund type that exists to cover normal material replacements like roof, siding, plus the occasional room refurbishments..

The assessment is generally for something completely unexpected...more like a hurricane (but they also have insurance...and can decide to split the insurance with members rather than rebuild)

 

[Dean]

If so, what is it, and does it vary from home resort to home resort? I know the annual dues vary, but I am wondering if there is a maximum percentage they are allowed to increase. Any other nuances I should know about increasing annual dues? In process of purchasing BLT resale. I know annual dues are currently $4.50.

You have been given the answers but I'd add that the 15% per year limit does not offer ANY protection as DVCMC proved recently with the reallocation over 2 years.

 

[JessLCH]

You have been given the answers but I'd add that the 15% per year limit does not offer ANY protection as DVCMC proved recently with the reallocation over 2 years.

Sorry, Dean, I am not currently a DVC member so this is all new to me. Just in the process of purchasing and dont even have a contract in my hands yet. I am not sure what you are talking about...can you explain the reallocation over 2 years you mentioned? I have no clue what that means. Reallocation of what?

 

[Dean]

Sorry, Dean, I am not currently a DVC member so this is all new to me. Just in the process of purchasing and dont even have a contract in my hands yet. I am not sure what you are talking about...can you explain the reallocation over 2 years you mentioned? I have no clue what that means. Reallocation of what?

The POS says that they cannot change more than 20% a year for reallocation and they needed a change larger than 20% so they just spread it over 2 years. It would be easy to do the same for maint fees so I do not see the 15% limitation noted as providing any protection at all.

 

[RobDoc]

... Reallocation of what?

The 20% is for a reallocation of the point charts - where the total points at the resort cannot change, but DVC can reallocate the points required by raising some nights and lowering others. As long as the points required for the entire year are in balance, they are allowed to modify seasons, weeknights, weekends for each room type - and have done so in the past.

The DVC documents have a maximum reallocation chart to show what the required points would be if the points were balanced thru the entire year for each type of villa (weekends/weekdays would all be the same as well as no seasonal variation - the only difference would be for Studios, 1BRs, 2BRs and GVs as appropriate for each resort).

 

[JessLCH]

The 20% is for a reallocation of the point charts - where the total points at the resort cannot change, but DVC can reallocate the points required by raising some nights and lowering others. As long as the points required for the entire year are in balance, they are allowed to modify seasons, weeknights, weekends for each room type - and have done so in the past.

The DVC documents have a maximum reallocation chart to show what the required points would be if the points were balanced thru the entire year for each type of villa (weekends/weekdays would all be the same as well as no seasonal variation - the only difference would be for Studios, 1BRs, 2BRs and GVs as appropriate for each resort).

Thanks you. That explains it! I knew Disney had the right to reallocate points and had already compared charts from 2009 to 2014 for BLT and AKV just to get a sense of what it actually looks like. I did NOT know there was a maximum reallocation chart. Is there anywhere I can view it or is it on the member website? Like I said, just beginning the purchase process.

 

[RobDoc]

Thanks you. That explains it! I knew Disney had the right to reallocate points and had already compared charts from 2009 to 2014 for BLT and AKV just to get a sense of what it actually looks like. I did NOT know there was a maximum reallocation chart. Is there anywhere I can view it or is it on the member website? Like I said, just beginning the purchase process.

I have never seen this online, only in the POS for individual resorts. I do not think such a reallocation is a likely scenario, so that information may not be of any practical value. It is included in the POS more as an example to explain reallocation. The first reallocation was in 1996 for OKW.

I will try to post the chart over the weekend as I do not have the POS available right now.

 

[Dean]

I have never seen this online, only in the POS for individual resorts. I do not think such a reallocation is a likely scenario, so that information may not be of any practical value. It is included in the POS more as an example to explain reallocation. The first reallocation was in 1996 for OKW.

I will try to post the chart over the weekend as I do not have the POS available right now.

It should be in the filed documents with Orange County but I'm sure it's easier to scan and post it than to try to dig through their site.

JessLCH, it's essentially a chart that makes every day of the year the same so if you think about the average for the year for a given villa size, you'll have a good idea.

 

[CarolMN]

It should be in the filed documents with Orange County but I'm sure it's easier to scan and post it than to try to dig through their site.

JessLCH, it's essentially a chart that makes every day of the year the same so if you think about the average for the year for a given villa size, you'll have a good idea.

Tim K (www.DVCNews.com) included a summary chart of the maximum reallocations for the WDW DVC resorts in an article he wrote speculating on the point chart for the Grand Floridian:

Grand Floridian points chart preview

It's interesting to see the differences between the resorts.

 

[JessLCH]

Thank you all so much. I am trying to be as educated a new buyer as possible!