Special Assessment of $14,498.45!

[wswanliz]

I have a 1 BR studio with Legacy Vacation in Reno NV since 1992. I paid the annual maintenance fee of $783 at the end of December. I just got a bill for $14,498.45 for a special assessment because of bad debt and critical capital improvements! It looks like they want to take the property back from the owners who will likely all default then resell it. They give you the option to covnvert to our points-based vacation club program(I am sure at a cost) or deed back your week. What can I do about thi?. Seems outrageous!

 

[pedro47]

IMHO, I would deed back the week. I would not pay that special assessment.

 

[TheTimeTraveler]

I have a 1 BR studio with Legacy Vacation in Reno NV since 1992. I paid the annual maintenance fee of $783 at the end of December. I just got a bill for $14,498.45 for a special assessment because of bad debt and critical capital improvements! It looks like they want to take the property back from the owners who will likely all default then resell it. They give you the option to covnvert to our points-based vacation club program(I am sure at a cost) or deed back your week. What can I do about thi?. Seems outrageous!

This has a bad smell to it. Personally, I would call the Resort and ask for documentation and paperwork that justifies a $15,000 assessment....... $15K multiplied by 52 weeks equal $780,000 for just that one unit.

I would also electronically look at newspapers for Reno, NV and see if they have published any stories regarding ongoing issues at that Resort (if it's $15K assessment for a studio then I would think it would be a $30K assessment for a 2 bedroom). Something like this will likely make the news.

Review it carefully prior to making any payment or a decision that surrenders your deed.

Please return to TUG and let everyone know what the justification is for this special assessment.











.

 

[theo]

I have a 1 BR studio with Legacy Vacation in Reno NV since 1992. I paid the annual maintenance fee of $783 at the end of December. I just got a bill for $14,498.45 for a special assessment because of bad debt and critical capital improvements! It looks like they want to take the property back from the owners who will likely all default then resell it. They give you the option to covnvert to our points-based vacation club program(I am sure at a cost) or deed back your week. What can I do about thi?. Seems outrageous!

In 1999, Celebrity Resorts (a somewhat shady operation in my personal opinion, with developer stooge-controlled Boards at all of their resorts, iirc) folded and declared bankruptcy, then rose from those ashes to emerge anew as “Legacy Vacation Club” (...still with the same players, a father and son team with last name Meyers, iirc).
I have no idea if this is the same Legacy Vacation entity as the one to which you now make reference above. If so, I strongly recommend looking very hard and very deeply into the details, intent (and validity) of this hefty “special assessment”.

P.S. In 2020, owners of a Legacy Vacation Club property in Brigantine, NJ were unexpectedly hit with a $8,000 “special assessment”. I don’t know any further details, nor do I know how that particular matter turned out; I'm just passing that observation along in case you want to research that outcome as perhaps having some relevance to your current situation in Reno. Are surprise, hefty special assessments a “pattern” with Legacy Vacation Club? I certainly do not claim to know.

 

[RX8]

I checked the internet and there are zero hits about a special assessment for Legacy Vacation. What is the exact name of the resort? Was this bill an out of the blue surprise or has there been previous communication about the issues and pending assessment? That is a huge assessment and at $780,000 per unit it would seem as if it is a complete rebuild. I have never seen such a big assessment but other large assessments I have seen have given the owners an option to pay it over a couple of years. Something is fishy here. If there has been no previous communication before this bill it may just be a scam, maybe by some unrelated “Vacation Club” trying to scare you into paying them to join their “points program”.

Here is the TUG thread @theo mentioned.

$8000 Special Assessment and Fee for 2021 [ Legacy Vacation in Brigantine NJ ]

We have a 1 BR condo with Legacy Vacation in Brigantine NJ adjacent to the beach since 1990. Last years, the fee was $1.700; half of which showed as bad debt in the budget. This year, our bill is $1,850 plus Special Assessment totaling $8,000! It looks to me like they want to take the...

tugbbs.com

 

[iftravel]

This is a new world record for SA!

 

[gravityrules]

Reno Hotel | Legacy Vacation Resort | Nevada

Book your hotel stay at Legacy Vacation Resorts Reno to be near Reno's vibrant nightlife, Vegas-style casinos, outdoor recreation, & more.

www.legacyvacationresorts.com

 

[bnoble]

or deed back your week

If deeding back is free (or close to it) I would just do that. If that happens, you've been given a gift--this timeshare, as a timeshare, is probalby something you would ordinarily have to pay a year's usage and all closing fees to give it away. In fact, I'd even consider paying a year's MFs or so just to be done with it.

Yes, there might be some proceeds paid out to the owners left standing when this resort is liquidated, but unless they are talking about liquidating right now this could drag on a while---and it doesn't sound like that's the current plan. Even then, I'm not betting $15K than I'll get more than that back after an (eventual!) liquidation. If they are not liquidating, would you pay $15K for a 1BR timeshare in Reno, no matter how nice it was? I know I wouldn't.

If it is more than about 1-2 years MFs to deed it back, I would default and tell them to kick rocks.

 

[TUGBrian]

I saw on facebook (so taken with a grain of salt) someone report that this was to cover bad debt/delinquencies. though for a claim like that a BOD would have to have some significant financial proof and mailed that out to residents (like the past 5 years worth of annual reports showing a staggering shortfall in dues).

could you please post a copy of the special assessment document sent? id really like to read what it says! you can email it to me if you dont wish to post it yourself tugadmin@tug2.net

 

[TUGBrian]

did get confirmation via email today from yet another owner at this resort that the special assessment is being explained as necessary to cover bad debt/delinquencies... am still hoping to get my eyes on the actual letter sent to owners about it! (and the 2024 final annual financial statement)

 

[bnoble]

the special assessment is being explained as necessary to cover bad debt/delinquencies.

So, if the fees are $800/week/year, they are covering for 18-19-week-years of bad debt per owner?

Sounds like a resort in a death spiral to me. I'd take them up on their offer to deed back if it is even remotely reasonable.

 

[gravityrules]

$8000 Special Assessment and Fee for 2021 [ Legacy Vacation in Brigantine NJ ]

We have a 1 BR condo with Legacy Vacation in Brigantine NJ adjacent to the beach since 1990. Last years, the fee was $1.700; half of which showed as bad debt in the budget. This year, our bill is $1,850 plus Special Assessment totaling $8,000! It looks to me like they want to take the...

tugbbs.com

Same song, 2nd verse ...

There is a reference to a FB group in this thread, would be interesting to know how this ended with the NJ resort

 

[TUGBrian]

So, if the fees are $800/week/year, they are covering for 18-19-week-years of bad debt per owner?

Sounds like a resort in a death spiral to me. I'd take them up on their offer to deed back if it is even remotely reasonable.

someone just forwarded me the scanned letters, thats exactly what they are claiming.

I honestly dont see anyone paying a 15k assessment on an 800/year mf timeshare...and they had to know that moving forward especially with the mention of offering a surrender program.

creative way to prepare a resort for sale if you ask me!

here is the page explaining the assessment:

 

[TUGBrian]

2025 proposed budget.... unless im straight up crazy I only see a shortfall of 2.4m (508 per interval).... how on earth they justify a 15k assessment is beyond me.

admittedly 2.5m of bad debt for a resort that has a budget of only 4m is clearly not sustainable.

 

[dioxide45]

So they have a points based program? Is it trust based? Does the trust own weeks at this property? Won't the trust be responsible for this special assessment on weeks it owns?

 

[dioxide45]

2025 proposed budget.... unless im straight up crazy I only see a shortfall of 2.4m (508 per interval).... how on earth they justify a 15k assessment is beyond me.

View attachment 109404

admittedly 2.5m of bad debt for a resort that has a budget of only 4m is clearly not sustainable.

They've only been collecting $10 per year per unit for reserves. I suspect they have serious deficiencies and renovations that need done and they don't have the cash on hand to do it.

 

[TUGBrian]

and the budget explanation for the assessment amount....this is just straight wild.

while I agree the numbers arent sustainable and this resort is in dire straights, how could anyone reasonably think the solution is a 15k assessment?

 

[TUGBrian]

They've only been collecting $10 per year per unit for reserves. I suspect they have serious deficiencies and renovations that need done and they don't have the cash on hand to do it.

expenses like that should be in the budget somewhere.

i just posted the assessment breakdown, it is 100% for bad debt (but clearly over the next 10 years)

 

[TUGBrian]

So they have a points based program.s it trust based? Does the trust own weeks at this property? Won't the trust be responsible for this special assessment on weeks it owns?

admittedly this is the first ive heard of any sort of point program for legacy vacation club.

 

[rickandcindy23]

But there is a point system owners can join.

 

[TUGBrian]

i cant find anything related to a point system on their website?

the only reference i can find to LVC and points, is perhaps an affiliation or option to enroll the week in RCI points?

this reference is from MANY years ago... https://tugbbs.com/forums/threads/legacy-vacation-club-convert-or-buy-new-newbie-qs.162115/

 

[dioxide45]

expenses like that should be in the budget somewhere.

i just posted the assessment breakdown, it is 100% for bad debt (but clearly over the next 10 years)

What do you mean over the next 10 years?

 

[TUGBrian]

the bad debt line item for 2025 is only 2.4 million (500/owner)

the special assessment is citing 61 of the 70 million collected for bad debt.... the only way that math works is if they are expecting to continue (or get worse) over the next 10 years (or more).

 

[rickandcindy23]

Maybe it's part of a sales ploy. Get people to join the point system and forgo the SA for $30,000.

 

[dioxide45]

Seems like extortion.