Replacement Reserves Fee / Special Assessments

SueDonJ · Oct 28, 2016

Looking over the MF's sticky threads for the past few years there seems to be a pattern developing of the Reserve fees being increased disproportionally at certain resorts (Aruba Surf Club, Monarch) to cover specific repairs/refurbs. In the past these would have been broken out in the budgets to a "Special Assessment" line item, which made it easy for Owners to understand how much of the total MF's are being earmarked for these specific items, how much of a shortfall is in play, and when/by how much the MF's should be expected to decrease after the SA period.

This isn't a good trend, IMO, especially if it's happening because the resort BOD's are improperly forecasting expenses, or worse, if MVW is manipulating Reserves to keep them artificially low in non-SA years. Is anyone else seeing this happening at any other resorts?

AlmostRetired · Oct 31, 2016

SueDonJ said:
Looking over the MF's sticky threads for the past few years there seems to be a pattern developing of the Reserve fees being increased disproportionally at certain resorts (Aruba Surf Club, Monarch) to cover specific repairs/refurbs. In the past these would have been broken out in the budgets to a "Special Assessment" line item, which made it easy for Owners to understand how much of the total MF's are being earmarked for these specific items, how much of a shortfall is in play, and when/by how much the MF's should be expected to decrease after the SA period.

This isn't a good trend, IMO, especially if it's happening because the resort BOD's are improperly forecasting expenses, or worse, if MVW is manipulating Reserves to keep them artificially low in non-SA years. Is anyone else seeing this happening at any other resorts?

While I may not agree on why this was done this way (specific to the Monarch), you very well could be right. I do believe the HOA (BOD) has done a very good job over time. I am in 100% agreement with you that it should have been broken out and clearly identified. The Monarch has a comparison chart on the owners website for the MF's showing every year since the opening. There has been 3 one time assessments each noted.

I sent an email to the board liaison asking for the yearly amount to be clearly noted. I will update this when I hear back.

SueDonJ · Nov 8, 2016

Note the topic has come up and is being discussed in another MF-related thread, here. This thread being closed.

11/11/17 -

I realize this is duplicate info but am trying to head off a bunch of duplicate posts in several threads. Note the Forum Announcement here.

Replacement Reserves Fee / Special Assessments

SueDonJ

AlmostRetired

SueDonJ