# RHC -Special Assessment



## abc31 (Oct 10, 2008)

I just got a letter from RHC explaining that they are feeling the effects of the weak dollar and rising energy costs and will be charging a special assessment that is due Nov. 30th.  It is based on how many points you have.  Mine will be $380.00 for 60,000 points.


----------



## caribbean (Oct 10, 2008)

Got mine in the mail yesterday. $150 for an Ambassador Week.


----------



## salpal (Oct 10, 2008)

got mine $610 for 110000 points


----------



## JMAESD84 (Oct 10, 2008)

*Special Assessment*

How can a vacation club have unusual expenses that would warrant a "Special Assessment"?

I didn't think that RHC was a property owner.  I thought that they just leased out inventory from contracted resorts.


----------



## abc31 (Oct 10, 2008)

I was wondering the same thing.  They claim that they are incurring expenses from the resorts that they have contracts with.  I think it is outrageous.  They claim that the assessment is to cover 2007,2008 & 2009.  We had an increase in our annual fees.  I can't imagine that their expenses went up that much. I don't think there is anyone that represents the owners, like a homeowners association.  It seems that they can impose this whenever they decide to.  They are only giving us until the end of November.  There was no notice that this might come up.


----------



## caribbean (Oct 10, 2008)

They own several resorts in Mexico as well as have contracts with a lot of facilities worldwide. We were hit with a SA 2-3 years ago after hurricanes hit the resorts in Mexico and they had to do a lot of major work.


----------



## jennstall (Oct 10, 2008)

I just got my notice today as well. Considering how much oil prices have dropped over the past couple of months, I think it is bs, but don't really see a way around paying it. Thankfully mine is only $170.


----------



## abc31 (Oct 11, 2008)

This is just a way to get more money without raising their annual fees.  If they raise their annual fees, it is harder to sell new contracts.  Most people would ask about the annual fees before making a purchase, but wouldn't know to ask about how many special assessments they have had.  It is robbery.  My assessment amount is $380 for 60,000 points.  There was very little notice either.  We should have had more warning that this was coming.


----------



## SteveH (Oct 11, 2008)

I won a 30K point ebay auction a couple of weeks ago and wasn't expecting any quick action on the closing.  So I wonder if and when I'll become responsible for this SA?  Should be interesting but somehow I don't think I'll be lucky enough to miss out on this one.
Steve


----------



## abc31 (Oct 11, 2008)

The letter from RHC said that it was to cover extra expenses from 2007, 2008 & 2009.  Since you aren't the owner yet and the assessment is due in November, I would say you have a very good argument.  I would definitely call the seller.  You wouldn't be expected to pay maintenance for previous years, so maybe you could convince the seller to pay 2/3's of it (the 2007 & 2008 portion).


----------



## JMAESD84 (Oct 11, 2008)

abc31 said:


> This is just a way to get more money without raising their annual fees.  If they raise their annual fees, it is harder to sell new contracts.  Most people would ask about the annual fees before making a purchase, but wouldn't know to ask about how many special assessments they have had.  It is robbery.  My assessment amount is $380 for 60,000 points.  There was very little notice either.  We should have had more warning that this was coming.



I curious as my letter says that the assessment amount is based on a flat rate of 0.79 cents per HC.  (0.79 X 60,000 = $474) ??

In reading the operating rules, I don't see where they have the authority to charge a special assessment.  The managment company is obligated to put forth an annual budget to cover that years anticiapated operating costs, and costs increases above the U.S. CPI can be rejected by a 70% vote of membership.  Annual fees must be billed at least 30 days before due and are due on January 15 each year.

No budget or accounting of actual costs, just a note saying we need more money and to pay.  Seems a bit like extortion to me.


----------



## abc31 (Oct 12, 2008)

JMAESD84 said:


> I curious as my letter says that the assessment amount is based on a flat rate of 0.79 cents per HC.  (0.79 X 60,000 = $474) ??
> 
> 
> In reading the operating rules, I don't see where they have the authority to charge a special assessment.  The managment company is obligated to put forth an annual budget to cover that years anticiapated operating costs, and costs increases above the U.S. CPI can be rejected by a 70% vote of membership.  Annual fees must be billed at least 30 days before due and are due on January 15 each year.
> ...



Funny, my letter said it was based on a flat rate of .63 cents per HC.  I never did the math. Spence, over on timeshareforums.com, said that his had a different rate.  I think it was .80 cents.

I completely agree that this is extortion.  How can they just decide to tack on a fee with nothing but a vague excuse? Something is really wrong with this, but I don't know what we can do about it.


----------



## MaryH (Oct 12, 2008)

Does anyone know how much it is for 90K points? I am on the road so have not get it yet and expect mail to Canada would take longer.

Well I think what happens is that some of their contracted stuff i.e. Nell Gwynn House is in local currency.  They lease or sublease several flats in Nell Gwynn and puts people in them.  But if this is the case, a prudent company should hedge their currency exposure to fix the exchange rates.  Actually USD had lost a lot of grounds in the last ocuple of years but re-gaining some grounds recently..

When they did the SA before, they offered something else in turn.  Are they doing it this for this SA?


----------



## abc31 (Oct 12, 2008)

Yes, they are offering a week at one of their all-inclusive Mexican or Dominican Republic Resorts.  

I don't know what they want for 90,000 points.  Everyone seems to be told a different rate per point.


----------



## MULTIZ321 (Oct 12, 2008)

Just returned from a RHC week at the Affinia Dumont to have the RHC letter awaiting in the mail.

Our special assesment rate is .86 cents per Holiday Credit or $215.00.

If RHC receives payment by November 30th, 2008 - they are offering a 7-night
"Vacation Courtesy" at any Park Royal Hotel in Mexico; Oasis Hotel in Cancun; or
Princess Hotel in the Dominican Republic during 2009.


Richard


----------



## JMAESD84 (Oct 12, 2008)

MULTIZ321 said:


> Just returned from a RHC week at the Affinia Dumont to have the RHC letter awaiting in the mail.
> 
> Our special assesment rate is .86 cents per Holiday Credit or $215.00.
> 
> ...



**SUBJECT TO AVAILABILITY.  NOT VALID DURING PRIME SEASON.  ALL INCLUSIVE MANDATORY FEE APPLIES.*

I had to bold the fine print.

That sounds like the are willing to give us something that's worthless and that we won't use.

Here's an idea.  Increase the annual fee in by the same percentage for everyone, based this increase on the total legitimate expenses as documented in the budget and put it to a vote of the membership.

Or just like it is supposed to be done.


----------



## mav (Oct 13, 2008)

I own almost 200,000 points and am in Italy right now so I dont know what mine will be


----------



## SteveH (Oct 13, 2008)

abc31 said:


> The letter from RHC said that it was to cover extra expenses from 2007, 2008 & 2009.  Since you aren't the owner yet and the assessment is due in November, I would say you have a very good argument.  I would definitely call the seller.  You wouldn't be expected to pay maintenance for previous years, so maybe you could convince the seller to pay 2/3's of it (the 2007 & 2008 portion).


I think this is reasonable and I've followed up with a friendly e-mail to the ebay vendor requesting he share 2/3's of the cost.  I'll let you know how it turns out.
Steve


----------



## abc31 (Oct 13, 2008)

Good Luck, Steve. Let us know what happens.


----------



## JoeMid (Oct 14, 2008)

abc31 said:


> Funny, my letter said it was based on a flat rate of .63 cents per HC. I never did the math. Spence, over on timeshareforums.com, said that his had a different rate. I think it was .80 cents.


The rate is different for different point levels, just like the rate for MFs is.  See Spence's MF chart over there.



MaryH said:


> Does anyone know how much it is for 90K points? I am on the road so have not get it yet and expect mail to Canada would take longer.
> 
> When they did the SA before, they offered something else in turn. Are they doing it this for this SA?


90K - probably in the .6 - .7/pt range.



abc31 said:


> Yes, they are offering a week at one of their all-inclusive Mexican or Dominican Republic Resorts.
> 
> I don't know what they want for 90,000 points. Everyone seems to be told a different rate per point.


Same thing they did after the last hurricane SA; question is - what AI rate are they charging?  I have a certificate for unlimited AI reservations for 5 years but the AI rate is 33% more than if I reserved with points, so they're getting their MFs back!



mav said:


> I own almost 200,000 points and am in Italy right now so I dont know what mine will be


.5 -.6/pt probably.


----------



## abc31 (Oct 14, 2008)

JoeMid said:


> question is - what AI rate are they charging?  I have a certificate for unlimited AI reservations for 5 years but the AI rate is 33% more than if I reserved with points, so they're getting their MFs back!



So basically it is worthless.  Do they really think we are that stupid?


----------



## bigrick (Oct 17, 2008)

abc31 said:


> I just got a letter from RHC explaining that they are feeling the effects of the *weak dollar *and rising energy costs and will be charging a special assessment that is due Nov. 30th.  It is based on how many points you have.  Mine will be $380.00 for 60,000 points.



Now that the US has a strong dollar do you think we can convince RHC that the good times are rolling once again?


----------



## MaryH (Oct 18, 2008)

I have not received the letter yet in Canada but online it should $515 SA for 90K points contract I have.


----------



## PeelBoy (Oct 19, 2008)

Mine has not arrived yet in Canada.  Online says $330 for 40,000 points.


----------



## SteveH (Oct 21, 2008)

*No help with SA*



SteveH said:


> I think this is reasonable and I've followed up with a friendly e-mail to the ebay vendor requesting he share 2/3's of the cost.  I'll let you know how it turns out.
> Steve



Is anyone surprised?  Here's what I got back from the vendor "After speaking to the resort, this is a 2009 special assessment. Per your contract, you are responsible for the 2009 fees. Please let me know if you have any additional questions."

Do the letters received by most of you specifically say 2007, 2008 and 2009?
 
Steve


----------



## abc31 (Oct 21, 2008)

Yes. It does say that it was for expenses incurred in 2007,2008 & 2009.  If you go on timeshareforums.com & go on the Royal Holiday Forum, Spence posted a copy of the letter.  You can read exactly what it says.


----------



## JMAESD84 (Oct 21, 2008)

SteveH said:


> Is anyone surprised?  Here's what I got back from the vendor "After speaking to the resort, this is a 2009 special assessment. Per your contract, you are responsible for the 2009 fees. Please let me know if you have any additional questions."
> 
> Do the letters received by most of you specifically say 2007, 2008 and 2009?
> 
> Steve



Yes it says 2007, 2008, 2009.  Obvously anticipating shortfalls for 2009.

I recently closed on one contract and have another closing now.  The seller agreed to pay the assessment for each, in order to provide these as free and clear for a first use year of 2009.  

This is not a 2009 Special Assessment. It was prepared and billed in 2008.


----------



## SteveH (Oct 22, 2008)

JMAESD84 said:


> Yes it says 2007, 2008, 2009.  Obvously anticipating shortfalls for 2009.
> 
> I recently closed on one contract and have another closing now.  The seller agreed to pay the assessment for each, in order to provide these as free and clear for a first use year of 2009.
> 
> This is not a 2009 Special Assessment. It was prepared and billed in 2008.



My vendor has agreed to pay 2/3 of the assessment to RHC.  I find this reasonable and I'm satisfied.  I'll send along the other 1/3 once I receive ownership confirmation from RHC.  With all the horror stories about RHC's book keeping, I hope receiving 2 partial payments doesn't create recording errors at their end!
Steve


----------



## Whirl (Nov 12, 2008)

I have to tell you, I find this SA very disturbing in these tough economic times.  The SA itself does not concern me, but the apparent urgency for the payment troubles me.

I bought my weeks cheap and feel I have well gotten my money's worth, but I am sitting on the phone waiting to shell out my SA and maintainance fees. Wanting the money on such short notice makes me speculate that they are really in dire need of the money to maintain even basic operations. Pure speculation, of course....I ahve no basis on which to justify, but I just don't like it!

Feeling a little nervous about RHC for the first time in almost 10 years! 

I have loved this membership, although now that my kids are vey young and we travel a little less ( and differently), I am not using it as much. I end up renting out my points alot and rolling them forward.

Cheryl....just thinking out loud and killing time while on hold....


----------



## MaryH (Nov 12, 2008)

The special assessment for Wilma had more advance notice if I remember correctly.  

When I called and asked about the SA, they said that they had been at $1410 for 2 years for 90K and $1280 for 2 years before that before that.  So would they be better off increase the MF 4-5% per year?  Also I am wondering if they hedge against currency volitility since they may have to pay for a lot of stuff other currencies.


----------



## reddiablosv (Nov 16, 2008)

*What's to worry!*



Whirl said:


> I have to tell you, I find this SA very disturbing in these tough economic times.  The SA itself does not concern me, but the apparent urgency for the payment troubles me.
> 
> I bought my weeks cheap and feel I have well gotten my money's worth, but I am sitting on the phone waiting to shell out my SA and maintainance fees. Wanting the money on such short notice makes me speculate that they are really in dire need of the money to maintain even basic operations. Pure speculation, of course....I ahve no basis on which to justify, but I just don't like it!
> 
> ...



I have gotten my resale purchase price back many times over...I just shelled out my SA... to me it is .. what's to worry... even if they go belly up .. I am whole... I just don[t want to be the one that tips them over the edge... I would rather lose my SA.. Ben


----------



## reddiablosv (Nov 16, 2008)

*Is RHC belly up?*



reddiablosv said:


> I have gotten my resale purchase price back many times over...I just shelled out my SA... to me it is .. what's to worry... even if they go belly up .. I am whole... I just don[t want to be the one that tips them over the edge... I would rather lose my SA.. Ben



Don't look now, but what happened to the RHC website.  My search engine says the address could not be found!!!??   Is this just a glich or is something  else going on?  Ben


----------



## JMAESD84 (Nov 17, 2008)

reddiablosv said:


> Don't look now, but what happened to the RHC website.  My search engine says the address could not be found!!!??   Is this just a glich or is something  else going on?  Ben



I also tried to call and no one is answering.  Have they taken the money and run?


----------



## abc31 (Nov 17, 2008)

I wasn't able to get on the website's home page.  But I googled Royal Holiday Club and it gives you choices as to which section to be directed to.  I clicked on reservations and I was able to get through and see availablity.


----------



## Blondie (Nov 17, 2008)

It works fine now.


----------

