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CAN NORTH CAROLINA TIMESHARES HAVE MAINTENANCE FEES THAT VARY BY SEASON?

Fayeoctober

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All Owners at BARRIER ISLAND Station Duck pay the same maintenance fees whether they own in the Winter or Summer and regardless of the number of bedrooms they have. I don't know if this is because of something in our Articles of Incorporation, By-Laws, or perhaps even in something in North Carolina law. I do know that at least one other timeshare in the Outer Banks has two different fee structures by that could have something to do with their size.

I think that Owners with November-March weeks should pay less than those with Red Weeks. Those with the brightest Red Weeks get the advantage of Lifeguards; our Snack Shack; the Outdoor Swimming Pool; more activities, etc.

The problem is if there is some restriction in terms of the law, how do I find out about that; or is anyone familiar with this? Thank you.
 

chapjim

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There is a statute called the North Carolina Timeshare Act. I didn't look it up (it's easy to find) but I would be surprised if the statute addresses how operation and maintenance costs should be apportioned to the owners.

My guess is you'll find that the governing documents for each resort is all there is.
 

Fayeoctober

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Thank you, I didn't see anything in the references you mentioned. So if it is in our governing documents, wonder how we go about changing?
 

Maple_Leaf

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Thank you, I didn't see anything in the references you mentioned. So if it is in our governing documents, wonder how we go about changing?
You would likely have to get the Board to vote to modify the documents.
 

theo

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You would likely have to get the Board to vote to modify the documents.
With all due respect (and regardless of the state and / or resort), "the Board" alone would almost certainly have no legal standing or authority to independently adopt any such major change, unless that authority is already overtly and clearly granted within the recorded governing CC&R documents (...highly unlikely, at best).

Such a major change to officially recorded CC&R's would otherwise require a formal amendment to those CC&R's, based upon majority vote approval of all owners (...and good luck with that for this particular issue, since one segment of owners suddenly paying lower fees would necessarily mean that another segment of owners would obviously have to pay higher fees, just to maintain the current level of available operating funds). Any such voted approval ain't gonna happen...
 
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dioxide45

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All Owners at BARRIER ISLAND Station Duck pay the same maintenance fees whether they own in the Winter or Summer and regardless of the number of bedrooms they have. I don't know if this is because of something in our Articles of Incorporation, By-Laws, or perhaps even in something in North Carolina law. I do know that at least one other timeshare in the Outer Banks has two different fee structures by that could have something to do with their size.

I think that Owners with November-March weeks should pay less than those with Red Weeks. Those with the brightest Red Weeks get the advantage of Lifeguards; our Snack Shack; the Outdoor Swimming Pool; more activities, etc.

The problem is if there is some restriction in terms of the law, how do I find out about that; or is anyone familiar with this? Thank you.
This is why so many developers are going to point based systems. Marriott DC, Westin Flex. You pay more MFs for a prime week than you do for a mud week. Currently, in all states that I am aware of, your MF is based on the size of the unit and not the season. Florida is slightly different in that the amount of tax allocated to prime weeks is higher than the tax allocated to lower seasons. However, the operating fee is the same for all weeks of the same unit size.
 

Tamaradarann

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This is why so many developers are going to point based systems. Marriott DC, Westin Flex. You pay more MFs for a prime week than you do for a mud week. Currently, in all states that I am aware of, your MF is based on the size of the unit and not the season. Florida is slightly different in that the amount of tax allocated to prime weeks is higher than the tax allocated to lower seasons. However, the operating fee is the same for all weeks of the same unit size.
I totally agree about the comment about developers going to point based systems which rewards those that pay the premium for Platinum Season or Red Week Season with more points for the same maintenance. However, from my experience and knowledge of the HGVC and RCI systems I don't understand the comments "You pay more MFs for a prime week than you do for a mud week." and "Florida is slightly different in that the amount of tax allocated to prime weeks is higher than the tax allocated to lower seasons." Please explain.
 

WinniWoman

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In Vermont at Smuggs we pay the same fees for the prime weeks and the floating off season weeks.
 

Sandy VDH

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The problem is that in these situations it is often the lower demand season who owners bail on MFs as it is not worth it to them.

There is timeshare in MA on the cape that opted to close for Jan to Mar and move all those owners out to other weeks as there was very little demand during that time and owners who owned then were defaulting. It is one way to keep costs down during slower season.

Pure point systems do alleviate this problem as you collect MFs on points and not on underlying weeks. Higher points, higher demand, higher MFs.
 

tschwa2

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I don't know about NC but I know in Maryland all weeks (based on size) have to have the same MF's. I've long considered how to get around that. The only thing I can think of is perhaps to charge something like a $50 resort fee for weeks that include labor day through memorial day and maybe a $20 resort fee for those in May and September and no fee for the rest of the year. It is easier to justify it if you have an outdoor pool but personally I believe in summer the units get a lot more wear and tear, being more likely to be full to capacity, run the washer and drier and showers everyday or even multiple times per day bringing in more sand to the units, etc. In the winter many owners either let the units sit empty or come for a partial week, less likely to bring friends and family, etc.
 

Fayeoctober

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Sandy VDH - I like your response in terms of a timeshare on the Cape that closes between Jan-March and moves the owners to other weeks. When I thought I suggested something like that to my husband - he is on the Board - I think the question came up about the savings? Admittedly, it seems like there should be savings in staff in terms of their being laid off, but are there problems when you try and bring them back? I imagine some heat needs to be kept on or pipes will freeze, but I am interested in hearing from you or anyone else in terms of the savings.
Tschwa2 - I like your idea of a resort fee and we have put a fee in place - only $25 a week - but it is strictly for non-owners. Not sure how well it would go over for owners? I agree with all your comments about summer weeks getting a lot more wear and tear, but I wonder how much summer owners would complain about this? Anyway thank you for suggestions.
 

dioxide45

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I totally agree about the comment about developers going to point based systems which rewards those that pay the premium for Platinum Season or Red Week Season with more points for the same maintenance. However, from my experience and knowledge of the HGVC and RCI systems I don't understand the comments "You pay more MFs for a prime week than you do for a mud week." and "Florida is slightly different in that the amount of tax allocated to prime weeks is higher than the tax allocated to lower seasons." Please explain.
HGVC isn't a pure point system. It is a point overlay on top of deeded weeks. So everyone at the property pays the same MF for the same unit in the same season (though FL has some slight differences). Pure point systems that I am referring to here are like Marriott DC points, Vistana Flex programs, DVC and Club Wyndham. This is where you strictly buy a set number of points. Each point has a MF per point. Want to travel in the prime season, you need to buy more points thus driving up your overall MF. Want to travel in mud season, you don't need as many points.

A good example of this would be Marriott's Grande Ocean in HHI. If you can travel in January, it is only 1,175 points and the MF on that number of trust points is only $682. If you want to travel in prime summer it is 5,400 points and the MF on those points would be $3,132. However if two people owned weeks, one owning bronze and the other owning Platinum, they would both be paying a MF of $1,491.38.
 

Tamaradarann

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HGVC isn't a pure point system. It is a point overlay on top of deeded weeks. So everyone at the property pays the same MF for the same unit in the same season (though FL has some slight differences). Pure point systems that I am referring to here are like Marriott DC points, Vistana Flex programs, DVC and Club Wyndham. This is where you strictly buy a set number of points. Each point has a MF per point. Want to travel in the prime season, you need to buy more points thus driving up your overall MF. Want to travel in mud season, you don't need as many points.

A good example of this would be Marriott's Grande Ocean in HHI. If you can travel in January, it is only 1,175 points and the MF on that number of trust points is only $682. If you want to travel in prime summer it is 5,400 points and the MF on those points would be $3,132. However if two people owned weeks, one owning bronze and the other owning Platinum, they would both be paying a MF of $1,491.38.
While as you suggested HGVC is not a pure point system, the costs break down are similar to your example. In the HGVC system you pay $1000 in MF for a Platinum Standard 1 BR you own which gives you 4800 points you also pay $1000 MF for a Gold 1 BR which gives you 3400 points. Now if you want to vacation during Platinum Season in a 1 BR it costs 4800 points or $1000 in MF for the week. But if you own a 1 BR Gold your 4800 points cost is $1411 in MF for the week. The example I used was Platinum and Gold, and while Gold is not high season it is not as low valued as Bronze or Mud Season. HGVC has sold very little Bronze. If you own a 1 BR Bronze(mud season) in the HGVC system you get 1700 points for a 1 BR. Therefore, if you own a 1BR Bronze it would cost $2824 in MF for the week.
 

Tamaradarann

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Sandy VDH - I like your response in terms of a timeshare on the Cape that closes between Jan-March and moves the owners to other weeks. When I thought I suggested something like that to my husband - he is on the Board - I think the question came up about the savings? Admittedly, it seems like there should be savings in staff in terms of their being laid off, but are there problems when you try and bring them back? I imagine some heat needs to be kept on or pipes will freeze, but I am interested in hearing from you or anyone else in terms of the savings.
Tschwa2 - I like your idea of a resort fee and we have put a fee in place - only $25 a week - but it is strictly for non-owners. Not sure how well it would go over for owners? I agree with all your comments about summer weeks getting a lot more wear and tear, but I wonder how much summer owners would complain about this? Anyway thank you for suggestions.
I believe there would be significant savings in closing the resort during certain low seasons, however, the problems that you suggest in starting up again would also be significant. Most people don't want and can't live on a 9 month/year job and income. Furthermore, while teachers get off when school is out in the summer, the weather is usually the best in the year and if you have children they are also off so a teacher gets a 10 week summer vacation that they can enjoy with their children which is very desirable to most people. However, in the colder climates getting off in the winter(unless you love the winter and winter activities) without the ability to get away to a nice warm climate is a real bummer.
 
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