Update on OKW Extension

[DVC92]

I just received my quit-claim deed package for the OKW 15-year extension. As I have posted previously, DVD agreed in a response to a complaint filed with the Florida Timeshare Bureau to subsidize non-extenders at the appropriate time for the reserves component of their annual dues targeted for expenditure in use years 2042-2057; however, to my knowledge, such a subsidy has never been disclosed to the membership and questions on this matter were not responded to at the last annual meeting. It means that over the next 35 years we will get to a point where non-extenders will have a yearly subsidy towards their dues payment from DVD. I was disappointed to see that the new Product Understanding Acknowledgement (revised 4/9/08) accompanying my package did not include any mention of the subsidy. In speaking to the quality assurance division, they informed me that their intent to subsidize (and IMHO hopefully details of the subsidy’s implementation) will finally be formally disclosed to the members when the budget statement for 2009 is mailed to OKW members in November. I voiced my displeasure at their having delayed this announcement for so long, as I feel it was pertinent to the decision-making process regarding extending, especially the future financial obligations of non-extenders.

 

[Chuck S]

Honestly, it didn't affect my decision at all.

What did play a role in my decision not to exted was: 1) At my age, it is unlikely I would be using the extension for more than a couple years. and 2) It is impossible to predict the overall state of the economy that far into the future. I figured that money from dues could be repurposed to a better use for me in 2042.

The least of my concerns was whether I'd be paying a portion of the rehab costs after 2042.

It would be hard to conceive of almost any owner where that would actually be a deciding factor as to whether or not to extend. For most folks I think it was probably: 1) their age in 2042 2)if they felt their heirs would enjoy WDW in those 15 years 3)whether they felt paying now for something no one would get any benefit from until 2042 was a good idea and 4)their current financial situation.

I agree, it would have been nice for DVC to have given us a subsidy disclosure at the same time they offered us the extension, though, I think overall the decision to extend or not would have been the same for the individual owner. I wonder if the disclosure in the 2009 dues statement will include a specific start date for the subsidy, or just a general announcement? I'm guessing probably nothing too specific.

 

[Caskbill]

Thanks for the information. I'll be looking for their formal explanation of how things are going to work.

We didn't extend and I'd hate to think that in 2012 or so they'd start collecting dues for a scheduled rehab to take place in 30 years that would not benefit anyone except those who extended. Rehab would include everything from new carpet, new furniture and appliances, and any outside rehab needed such as new roofs, porches, etc.