Will DVC see any special assessments from new Florida condo law?

[DVCanadian]

I’m following the Florida condo crisis and wondering if any of the DVC buildings may have to assess special assessments based on requirements in the new law (2024 condo rights bill HB 1021).

I saw another thread about quarterly meetings per the law but I’m more concerned about the assessments needed for any 30+ yr old buildings.

Anyone have any info to share?

 

[sethschroeder]

Have you read the bill at all?
https://www.flsenate.gov/Committees/BillSummaries/2024/html/3512

1) Doesn't seem to apply to DVC as its a timeshare not a condo (there is limits on stay length to avoid someone from having DVC as a legal "home")
2) Doesn't seem to be anything that would cost Disney anything more except a few hours of training each year (which just means member services if they were doing that might be slightly slower 1 day responding to questions)

Seems like the bill is targeting corrupt condo leadership who are not following laws, are not acting in the best interest of the residence, and are what lead to likely issues in the state. Additionally it does setup hurricane protection processes being needed but even if this did apply to Disney I have to think they already have those.

Regarding the full bill text you can leverage certain AI tools to help you review documents like the bill as well to ask simple questions and get back non-partisan answers to an extent. Not a replacement for a lawyer but good enough for something like this. I just reviewed the summary and nothing even points to me needing to worry about the bill.

 

[DVCanadian]

Have you read the bill at all?
https://www.flsenate.gov/Committees/BillSummaries/2024/html/3512

1) Doesn't seem to apply to DVC as its a timeshare not a condo (there is limits on stay length to avoid someone from having DVC as a legal "home")
2) Doesn't seem to be anything that would cost Disney anything more except a few hours of training each year (which just means member services if they were doing that might be slightly slower 1 day responding to questions)

Seems like the bill is targeting corrupt condo leadership who are not following laws, are not acting in the best interest of the residence, and are what lead to likely issues in the state. Additionally it does setup hurricane protection processes being needed but even if this did apply to Disney I have to think they already have those.

Regarding the full bill text you can leverage certain AI tools to help you review documents like the bill as well to ask simple questions and get back non-partisan answers to an extent. Not a replacement for a lawyer but good enough for something like this. I just reviewed the summary and nothing even points to me needing to worry about the bill.

Chat GPT told me DVC could be impacted.
Which why I asked here.

DVC is run by a condo association which makes me question whether DVC is exempt from the condo rules (for those that think they bought a timeshare) and as DVC is moving to quarterly meetings as a result of the bill, therefore I took away that we are not exempt. Is there an exemption for condos with a defined ownership tenure (timeshare)?

It is the structural assessments that are killing some condos with buildings 30 years old and older. Thinking most 2042 DVC Florida properties may be asked to do the assessment. If I owned at Vero I’d always be worried, as an OKW owner I figure I’m on notice.

DVC looks closer to a time limited fractional condo ownership than a traditional timeshare so I wanted to see what knowledgeable people were thinking.

 

[CarolynFH]

Per reading on TUG, multiple condominium associations in Florida that are timeshares have been impacted by that bill, and DVC is no exception. That's why they're starting to have the quarterly meetings that are specific to each condo association. As far as the inspections and structural assessments, I suspect Disney has been keeping up with those already, to protect the significant financial interest they have in the resorts. Not only do they retain ownership of at a minimum 2% of each resort at all times, they'll take over full ownership when each condo association terminates. So I don't expect we'll face any special assessments - our dues have included substantial amounts for Capital Reserves each year, and the dollar amounts for those reserves have increased in recent years as replacement costs for items covered there have risen.

 

[Mouseforward]

Would OKW / SSR be affected since they are not more than 3 stories?

Thinking this is a BLT / BR / CC / VB / AK issue in the near term if structural issues were done in BPK during the refurbishment they may also be good .

 

[erionm]

Would OKW / SSR be affected since they are not more than 3 stories?

Thinking this is a BLT / BR / CC / VB / AK issue in the near term if structural issues were done in BPK during the refurbishment they may also be good .

The SSR buildings are 4 floors.

 

[Brian Noble]

Doesn't seem to apply to DVC as its a timeshare not a condo

As I understand it, timeshares in Florida are often organized under the legal framework of "a condominium", and so typically fall under both Chapters 721 (timeshare plans) and 718 (condominiums) of the Florida Statutes. Alternatively, they may be organized as "a cooperative" and would fall under Chapters 721 and 719. It's my understanding that (most of) the DVC resorts are organized as a timeshare condominium, and thus potentially subject to these amendments.

However, the properties that are going to see sharp upticks are those that either (a) did not perform regular adequate inspections of structural elements, and have unknown issues that have not been provided for in reserves or (b) voted to waive fully-funded reserves. I don't believe DVC falls into either of those categories.

Fair warning: IANAL. This is based on having followed the conversations on TUG.

 

[drusba]

The law covers all condominium resorts (and all cooperative resorts), including all timeshare condominium resorts, for buildings that are 3-stories high or more In Florida, and thus OKW and SSR are covered. The only DVC resort not covered by the new laws is CFW, both because it is not a condominium resort, and because it has no units that are 3-stories high or more. Also, not actually covered are the CCV cabins and Poly bungalows, simply because they are not 3-stories or more high. Many of the provisions of the new law are actually in the portions of the Florida statutes that relate to residential buildings in general, rather than just the condominium and cooperative statutory sections.

The recently announced change to the DVC resorts to have four quarterly, rather than one, annual association meeting with members was actually done because that is what the new law requires. The new law is actually the result of two separate bills, one passed in 2022, and the other in 2023 that added things to the first one. (Mentioned above is the 2024 law. That is actually the 2023 passed law with an effective date of July 2024, and it is the law that added changes and additions to the 2022 law, which for purposes of doing any required inspections/evaluations, the first required inspection does not need to be completed until Dec 2025. Thus, for most things involving the law. the effects are just starting to happen.) The law requires special structural inspections led by engineers to be done when the building becomes 30-years-old, and then every ten years thereafter. All structural issues needing attention discovered by the structural inspections must be repaired as needed, All such inspections and structural repairs covered by an inspection must be adequately covered by dues, including reserves, and unlike under the laws before 2022, no condominium, or cooperative resort, can waive collecting reserves for the activities (and just due special assessments when such issues arise) or waive the members obligation to pay them.

OKW is actually the first DVC resort covered by the law's required structural inspections and upkeep because almost all of its buildings are already more than 30-years old. Nevertheless, the first inspection for any building already 30 years old need not be completed until Dec 2025 (originally it was 2024, but the 2023 law extended it to 2025). The 2042 end date WDW resorts and VB will also reach that stage at varying times in the next several years.

Though it is possible some dues increases will occur for DVC resorts, it is likely true that DVC members will not see any significant new assessments and reserves such as those being mentioned for many condominium buildings in Florida. There are a lot of condominium resorts which actually did little to determine structural issues in the past and many did not even collect reserves. DVC has always had reserves and has always done thorough reviews of the resorts to determine needed upkeep, repairs, and reserves.

 

[Mouseforward]

So the next question would be - a resort like CCV - it is leased space in a building owned by WDW. So if there was ( and it is not probable) a structure issue would the entire cost go to DVD / DVC or would it be prorated?

 

[Brian Noble]

I would assume pro-rated, just like other "common area" costs are--the structural elements are presumably not properly part of any individual unit, and so are common.

 

[drusba]

So the next question would be - a resort like CCV - it is leased space in a building owned by WDW. So if there was ( and it is not probable) a structure issue would the entire cost go to DVD / DVC or would it be prorated?

The applicable law provides that for buildings that are part condominium and part not, the entire building requires the necessary structural inspections and it needs to be done by a combination of the condo association and the owner(s) of the other rooms in the building. Thus, for CCV, it would be a shared cost. Since the rest of WL is controlled by Disney and not a condominium association, its share of future costs would not be subject to the setting up of required condo reserves for any needed work to be done in the future, but it would contribute as needed. And now that I think about it, CCV is in the Wilderness Lodge building and that building opened in 1994, meaning, like OKW, it is required to do the initial structural inspection/evaluation required by the new law by no later than December 2025.