Maintenance Fees - I don't think I get it!

[littlestar]

Okay.

I've been reading every post I see about resales and how the maintenance fees work and frankly, I'm confused. We have an August use year. Come January 1, 2003, when we get the bill or statement from Disney for dues, am I paying for 12 months of 2003? January 1, 2003, through December 31, 2003?

Thanks.

 

[GenePA]

I Know we pay monthly for maintenance fees but I do have the understanding that these fees are based on the 'calendar' year. They will not necessaily correspond to your 'use' year. Though we are new to DVC, I expect my monthly maintenance fees to change (i.e. go up) come January.

 

[Richyams]

You are close.

You pay dues from Feb 1 2003 to Jan 31 2004.

Use year is unrelated to dues. All members get dues bill in Jan. All members are on the same dues bill schedule.

There may be some odd bookeepping at the end, but I guess they felt ot was easier and less expensive to have all dues the same day.

 

[Cap]

So we all need to be very watchful in 2042, to be sure we only pay for dues until they close up DVC - right!

 

[ncligs]

Originally posted by Cap
So we all need to be very watchful in 2042, to be sure we only pay for dues until they close up DVC - right!

 

[PamOKW]

The yearly dues are payable on January 15 of the year. They are past due after February 15. However, if you have a trip scheduled between January 15 and February 15 the dues must be paid at or before your check-in. If you have automatic monthly withdrawa of the yearly dues,l the due dates don't apply.

The budget runs from January 1-December 31. I'm not sure where Rich is getting his dates.

 

[Richyams]

I am not 100% sure, but I believe.....

DVC runs from Feb 1 1992 to Jan 31 2042. While the budget may run with the year, the dues that are payable on Jan 15 are for Feb 1.

Obviously, they need an even number of years. Those years run from Feb 1 to Jan 31.

I think I am correct....if anyone has different information, it is always welcome.

 

[Dean]

Actually Rich, it is due in Jan but for the Calendar year Jan-Dec, bills are usually sent out in December. Those paying monthly will pay Jan through Dec as well.

littlestar, if you pay the entire thing in Jan of 2003, you will be paying for Jan to July of your 2002 points and August to Dec of your 2003 points.

As far as the last year or years, it depends on how they do it. Those with a Feb use year (assuming they get all of the 2041 year points) should pay a full years points in 2041 and 1 month of fees in 2042. This will obviously be complicated by the fact there will not be enough rooms and time for everyone to get their points those last couple of years. So expect some type of lottery and/or proration of the points the last year or 2 (2040 and 2041). One would then pay a prorated amount based on how many points they get. Assuming one had an August use year and ended up with no points for August, 2041 but got all of the 2040 pts, the fees should be 7/12 of the yearly rate for Jan-July of that year (2041).

 

[RobDoc]

Pam is right. The dues are for the calendar year- Jan 1- Dec 31. They are due by Jan 15 or your first trip in the year- whichever is earlier- and are past due- with interest penalties- after Feb 15.

 

[Richyams]

While the dues are for budget year Jan 1 to Dec 31, how does that work?

I thought DVC was a 50 year program. This would imply 50 years of dues. I also thought the program ran from Feb 1 1992 to Jan 31 2042....who paid dues for Jan 1 1992? and does this mean that Jan 2042 will be without services, no clean sheets, no trash and towell? Wow, if I am wrong, Jan 2042 is not going to be a good month to visit.

 

[DebbieB]

Everyone will probably have to pay 1 months pro-rated dues for January 2042. Just like when I bought in 1999, I paid pro-rated from 9/2/99 to 12/31/99. Those who bought in 1992 probably paid a pro-rate too, not a full year.

 

[Richyams]

No, I don't think so. I think I am right. The last dues that will ever be collected are those payable Jan 15 2041 and actually due on Feb 1 and late Feb 15. Not taking DVC 2 into consideration, I believe there will be no dues collected after Jan 2041(except those that always pay late.

Werner is going to come by son with the page from the original offering statement that bears my belief out.

 

[RobDoc]

Page 19 of the 2002-2003 Member Guidebook explains the annual dues and the calendar year basis.

Page 18 of the 7/95 POS Summary under VI. Disney Vacation Club Operations 1. Annual Dues states:

" These Annual Dues may be paid by a single lump-sum payment due on or before January 1st. (Annual Dues are considered past due on January 31 or the arrival date of a reservation made with Home Resort Vacation Points, which ever is earlier. If the Club Member's payment arrives after January 31st, interest will acrue from Jauary 1st, and a late fee may be imposed);"

Since that was printed, the penalty date has been changed to Feb 15 (as is permitted under DVCMC amendment allowance), but the annual dues are still based on the calendar year. OKW opened in Oct, 1991- not on Feb 1, 1992 and members were able to use their points at that time. Some members with great foresight actually will get more than 50 years of DVC usage!!

I'm not aware of any comment in the POS about how dues (or anything else) will be handled for Jan, 2042. I do know that dues are based on the calendar year and that some adjustment or forgiveness will likely be made for any date past Dec 31, 2041. I would think that dues would be due on the points used for a reservation between Dec 31, 2041 and Jan 31, 2042. (Pure speculation on my part)

I don't really expect ANY information about dues, banking or borrowing for the final year(s) until 2040 at the earliest- unless DVC decides to offer some type of extension to owners of record prior to that time.

If anyone finds some printed information in our documents about 2042 dues, please share it!

 

[Laura24]

Originally posted by Cap
So we all need to be very watchful in 2042, to be sure we only pay for dues until they close up DVC - right!

Do you think we should start planning a deed burning now or will Disney throw us a huge *glad to know ya but now go to your real homes* going away party? Sad to even think about 2042 now! Only 40 more years to plan!

 

[Werner Weiss]

Originally posted by Richyams
Werner is going to come by son with the page from the original offering statement that bears my belief out.

Sorry to disappoint you. The annual budget each year is for a calendar year (such as "year ending December 31, 2002") and the annual dues are tied to the annual budget. Also the second column of each dues statement shows a calendar year, not a fiscal year. If the dues were for a fiscal year, it would say.

In late 2041, I excect to receive a bill for 2042, based on only one month of remaining in the DVC program -- unless they've sold me a renewal for another 50 years by then.

 

[drusba]

The documents specifically state that the annual dues apply on a calendar year basis, Jan 1 to Dec 31. If you are not on monthly withdrawal, you get the bill in Jan 2003 for the dues for the calendar year 2003 and must pay them by mid-Feb to avoid penalty. If you are on monthly withdrawal, you just continue having amounts taken out monthly. The program ends Jan 31, 2042 but the documents say nothing about what happens with that one month in relation to dues. In fact the documents say almost nothing about what happens in 2042 except that your interest in the property, and the program, ends. What will really happen in relation to dues, possible new buy ins for a new period, etc. is likely something they won't tell members until I am long gone.

 

[SamS]

In 2042, I will be 92 years old. Maybe they can convert the properties into old-age homes for "baby boomer" DVC members. And if we "expire" while residents of "Mickey's DVC Nursing Home", we can have our ashes scattered over our favorite WDW theme park.