MF on banked points? / MF yearly increases...

[penguins1]

Hi All,

First off... thanks for all of the great information here. We are in the early stages of considering a DVC ownership and had a couple of question on MFs...

If I were to buy a 160 point contract, and bank 50 points to next year, would I then pay MFs on 210 points or do you only pay MF on the number of points in your yearly allotment?

Second question... is there any protection whatsoever in the Disney contract that limits the amount of yearly increase in the MF... I think I read 15% somewhere but I wanted to see if that was truly the number... DW and I are slightly concerned that Disney could arbitrarily raise the fee to make this no longer cost effective. I assume they wouldn't do that, but if there is some sort of contractual protection, that would make us feel better.

Thanks!!

 

[OKW Lover]

I can answer your first question - you only pay for the total number of points you have. Banking/borrowing have no effect.

 

[DebbieB]

You pay dues on the number of points in your contract whether you use them that year or not.

The operating budget is audited, which means they cannot "arbitrarily" inflate numbers and keep it.

 

[DaveH]

I do not remember the max percentage the increase can be. Florida law for the resorts in Florida is pretty strict.

 

[Dean]

I do not remember the max percentage the increase can be. Florida law for the resorts in Florida is pretty strict.

It's 15% but that does not apply to things like the tax portion.

 

[drusba]

Hi All,

First off... thanks for all of the great information here. We are in the early stages of considering a DVC ownership and had a couple of question on MFs...

If I were to buy a 160 point contract, and bank 50 points to next year, would I then pay MFs on 210 points or do you only pay MF on the number of points in your yearly allotment?

Second question... is there any protection whatsoever in the Disney contract that limits the amount of yearly increase in the MF... I think I read 15% somewhere but I wanted to see if that was truly the number... DW and I are slightly concerned that Disney could arbitrarily raise the fee to make this no longer cost effective. I assume they wouldn't do that, but if there is some sort of contractual protection, that would make us feel better.

Thanks!!

Dues are set annually for a calendar year and you pay based on your contract size and banking or borrowing does not affect amount.

Disney cannot just "arbitrarily" raise dues. Maximum increase annually without a vote by the members is 15%. They must base dues on a reasonable estimate of costs (and it is not costs plus some profit). There is a prescribed method and formula (actually there are two alternative methods they are allowed to use which are applicable to condominiums and timeshares generally) for estimating costs. Property taxes are based on what they are. Note, dues do tend to rise annually but that is because costs rise annually. The 15% max is in the contract and other documents that come with the contract; the basing dues on costs and using accepted formulas is not in the contract but is legally required.

 

[penguins1]

Thanks so much for the replies - you are awesome!

I guess I didn't realize what all the MF included so it makes sense that they would need to be able to justify / explain why they increase / decrease them yearly.

Thanks again! Now to decide BLT (Now or wait) / AKV / Re-sale.... too many choices!!!

 

[OKW Lover]

Disney cannot just "arbitrarily" raise dues. Maximum increase annually without a vote by the members is 15%. They must base dues on a reasonable estimate of costs (and it is not costs plus some profit). There is a prescribed method and formula (actually there are two alternative methods they are allowed to use which are applicable to condominiums and timeshares generally) for estimating costs. Property taxes are based on what they are. Note, dues do tend to rise annually but that is because costs rise annually. The 15% max is in the contract and other documents that come with the contract; the basing dues on costs and using accepted formulas is not in the contract but is legally required.

The 15% limit isn't really much comfort since it can be exceeded by a vote of the membership. Since we all agreed to be represented by Disney Vacation Development (DVD) when we bought in, it won't be hard to get approval to raise the dues by more than 15%. Yes, DVD does have a fiduciary duty to represent the owners best interest, but that doesn't necessarily mean that their perspective of our best interest will agree with your's or mine.

 

[Dean]

The 15% limit isn't really much comfort since it can be exceeded by a vote of the membership. Since we all agreed to be represented by Disney Vacation Development (DVD) when we bought in, it won't be hard to get approval to raise the dues by more than 15%. Yes, DVD does have a fiduciary duty to represent the owners best interest, but that doesn't necessarily mean that their perspective of our best interest will agree with your's or mine.

This issue would require a direct vote of the members but at a 15% per year increase for a couple of years, that might not be much consolation.

 

[oldcarrot]

Fortunately increases have been far less than 15% per year...at that rate these costs would double every 5 years...quadruple in ten, etc. This would probably effectively kill the timeshare market unless the inflation rate and people's salaries and investments kept up...very unlikely especially for retirees.

 

[RobDoc]

Except for BLT, the 2009 annual fees are not yet published, but we should be getting the statement in the next 6 weeks or so. They will be voted on at the Annual Meeting in early December and will be due by January 15, 2009 unless using the autodebit feature.

Here is the history of DVC annual fees at all of the resorts:

Year OKW BWV VB VB(sub) HH VWL BCV SSR AKV

2008 4.56 5.04 6.04 4.71 5.16 4.87 4.80 4.21 4.71
2007 4.40 4.85 5.63 4.39 4.98 4.73 4.63 4.12 4.62
2006 4.24 4.69 5.27 4.12 4.34 4.61 4.48 3.98
2005 3.86 4.41 4.87 3.84 3.86 4.35 4.27 3.83
2004 3.68 4.25 4.67 3.67 3.70 4.22 4.18 3.80
2003 3.49 4.11 4.37 4.37 3.69 4.05 3.97
2002 3.22 3.92 4.17 3.33 3.49 3.80 3.77
2001 3.13 3.83 3.98 2.70 3.32 3.63
2000 3.16 3.94 4.07 2.87 3.25 3.62
1999 3.16 4.02 3.99 2.82 3.18
1998 3.17 3.94 ---- 2.76 3.20
1997 3.14 3.84 ---- 2.90 3.16
1996 2.99 3.70 ---- 2.82 3.16
1995 2.84
1994 2.70
1993 2.63
1992 2.56
1991 2.51