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2024 Reserve Fee Explanation

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Clearwolf60

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Just looked online and saw our dues post for 2024.

Over and above the operating fee (Dues) and real-estate taxes, there's a Reserve fee. Can someone explain what that is?

Thanks!
 
Many items are big ticket replacement items, like roofs and paved parking lots. Roofs need replacing and parking needs resurfacing/repaving etc. So these items have a planned life 20 years for a roof, and 15 years for paving, just guessing at replacement years. So instead of getting hit up with a Special Assessment (SA), well managed timeshares collect reserve $$ for the longer term goal of replacing these without having to fund it via SA.
 
Reserve fee is what you pay for scheduled maintenance / upgrades. Properties will do a reserve study to advise them on expected costs for maintenance and upgrades and owners pre-pay for them with reserve fees.

As an example - the study may say that the hallway carpets need to be replaced in 5 years, furniture in 7 years, roof in 20 years, elevators in 25 years etc. Then they estimate how much that will cost per year to have funds available for these projects and the owners pay for it ahead of time as a reserve fee.
 
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Interesting... makes sense. Don't recall this ever being gone over by their reps which isn't surprising.

How often are these Reserve fees assessed to the owners? Is this something we should expect annually or every 3, 5, 10 years etc.?
 
Expect it every year. It is a % of a future years project, held in a reserve account. Hopefully a well funded reserve means there is never a special assessment.
 
Clearwolf60 said:
Interesting... makes sense. Don't recall this ever being gone over by their reps which isn't surprising.

How often are these Reserve fees assessed to the owners? Is this something we should expect annually or every 3, 5, 10 years etc.?
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It will be part of the MF every year. The salesperson would really have no reason to break the MF down for you, as long as they disclose the current annual amount. It is the responsibility of the HOA to manage long term liabilities, so as to avoid special assessments.
 
Didn't realize that HGVC created videos. That is useful, if you need good explainations
 
So I have a question out of curiosity. I own at Elara (resale) and just received my invoice for FY24 and watched the videos above. Being the property also operates as a hotel via Hilton, as others do as well, where does that revenue from renting rooms to non-owners fit into the budget? Does that revenue help offset the budget or does that income not touch the timeshare part of the operation?
 
PhaxXx said:
So I have a question out of curiosity. I own at Elara (resale) and just received my invoice for FY24 and watched the videos above. Being the property also operates as a hotel via Hilton, as others do as well, where does that revenue from renting rooms to non-owners fit into the budget? Does that revenue help offset the budget or does that income not touch the timeshare part of the operation?
Click to expand...
If it's inventory that HGV owns, they pay the maintenance fees on it and they keep any profit above those fees. If it is inventory that they take control of, perhaps through someone booking non timeshare stays (cruise, hotel, experiences) or converting to Hilton Honors, HGV rents it out and keeps the profit.
 
PhaxXx said:
So I have a question out of curiosity. I own at Elara (resale) and just received my invoice for FY24 and watched the videos above. Being the property also operates as a hotel via Hilton, as others do as well, where does that revenue from renting rooms to non-owners fit into the budget? Does that revenue help offset the budget or does that income not touch the timeshare part of the operation?
Click to expand...

It's covered in the 2023 Hilton Grand Vacations Club Rules

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PhaxXx said:
So I have a question out of curiosity. I own at Elara (resale) and just received my invoice for FY24 and watched the videos above. Being the property also operates as a hotel via Hilton, as others do as well, where does that revenue from renting rooms to non-owners fit into the budget? Does that revenue help offset the budget or does that income not touch the timeshare part of the operation?
Click to expand...

Elara also has Westgate deeds. There will also be an agreement with Westgate that defines proportional responsibility for shared common-area structures, mechanicals etc.
 
Our neighborhood HOA just completed a major
overhaul of the pool & facilities with reserve fees.
It woulda been a significant SA but for the reserve.
.
 
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