Would DVC have assesments to members?

[bostontim]

I am just curious, do the terms of a DVC membership say that assesments could be made to members for expensive items such as major repairs or rehabs to the resort? Or is everything covered by the maintenance fees? I am just concerned about getting hit with a unexpected fee down the road.

 

[RobDoc]

DVC has never assessed the members for repairs although they do have the ability to do so under certain circumstances.

The resorts are well-insured and even with the hurricane damage at VB no assessment was needed. Our dues also include a Capital Reserve component which is designed to cover anticipated major renovation like roofs, painting and carpeting/appliance replacement.

If an unexpected repair became necessary beyond what is insured, there could be an assessment to cover that. At Hilton Head - 2 years ago - it was decided that the replacement schedule for some exterior components needed to be accelerated due to weather related wear. The Capital Reserve fund was not sufficient to accomplish this repair so DVD loaned the needed funds to the owner's and that loan is being paid back over 6 years. This did result in an increase in the annual fees but still within the 15% tolerance for dues to be increased.

At OKW in 2007, the board voted to extend the land-lease for the condominium association an additional 15 years and there was an assessment for all owners there to cover that decision. Owners had the choice of accepting the extension - at a cost of $15 per point - or declining the extension - with no additional cost. Any owners who failed to accept or decline the extension would have a lien placed on their ownership but we've seen no reports of that actually occuring.

I would not be concerned about an assessment, but we should all be aware that it could happen.

Stay tuned.

 

[Dean]

Had insurance proceeds not exceeded expectations, VB would have had a SA a couple of years ago. However, I agree the risk is fairly low.

 

[bostontim]

Thanks for the info guys. It definitely helps me in my decision process!