I found this from the audit 2015, no files available online for 2016 or 2017 in that regards. In 2015 122k was given in subsidies. Maybe someone can explain why hgvc paid them?
As of 31st of December 2015 hgvc was the owner of 746 units, seems like a lot.
Revenue Recognition
Maintenance fees revenue is recognized annually in the amount of the membership assessment allocation specified for current period operations based on the annual budget adopted by the Board. An equal portion of the maintenance fees is assessed for each ownership interest, based on unit type. In lieu of maintenance fees, the Developer has elected to subsidize any revenue shortfall, as further described in Note 9.
NOTE 9 - RELATED PARTY TRANSACTIONS
Pursuant to Nevada law, the Developer has agreed to subsidize through December 31, 2015, the difference between the actual costs incurred in operating the Project, taking into account all income and revenue received by the Association, and all amounts paid and payable by owners other than the Developer with respect to such operating costs, in order to keep amounts payable by owners other than the Developer at an amount comparable to the amount payable by owners if all 714 units were in operation. The Developer reserves the right, but not the obligation, to extend and increase the amount of this guarantee for one or more periods of one-year each, after the expiration of the guarantee period, as permitted by Nevada law.
NOTE 9 - RELATED PARTY TRANSACTIONS (Continued)
The Developer’s obligation under this subsidy agreement for the year ended December 31, 2015, was $122,037 for replacement. As of December 31, 2015, $4,065 was due to the Developer for overpayment of assessments. As of December 31, 2015, the Developer owned 746 ownership interests based on year 2015 occupancy.
The Developer utilizes 1,447 square feet of space in the first floor lobby of Las Vegas Boulevard Vacation Suites, for the purpose of operating a lobby and pool bar. The Association receives reimbursement for the maintenance of the sales and management office space and the first floor lobby space. Total reimbursement for the year ended December 31, 2015 was $371,928 and is included in other revenue.
Certain Board members are employees or representatives of HGVC or its affiliates. The following expenses were reimbursed by HGVC and its affiliates during the year ended December 31, 2015.
Regards