Grande Vista 2024 fee proposed to increase over $1000! What is going on?

[Greg G]

I was able to get Cypress Harbour reserve study for anyone who may be interested. I am reading through it now - quite extensive..

Wow, that provides the detail I was looking for, and as you indicated , it is quite extensive. For example it goes down to an individual piece/type of furniture in an owner unit, such as the living room arm chairs. That gives me more confidence in where the summary numbers came from, as well as allowing a person, if so desired, to verify their calculations. Their calculations also take into account estimated inflation on replacement costs and estimated interest on reserve balances.

The report states "The projections for this analysis assume unit interior refurbishments every 5 years for soft goods and every 10 years for case goods."
Unless I'm mistaken, it also looks like they are using a staggered (phased) approach for replacement , i.e. a percentage of the resorts units are fully replaced each year (did not fully verify this but just looked at a few pages)

For example, in their PROJECTED EXPENDITURES table the replacement of the living room arm chairs is staggered/phased into 5 phases, and happens every 10 years with a piece being reupholstered as its 5 year point in life then being replaced at its 10 year point in life (see the years 2033 to 2052 in the pdf for the rest of the living room arm chair numbers) , and that is synchronized with the other soft goods replacement in the units I believe.

	2023	2024	2025	2026	2027	2028	2029	2030	2031	2032
Arm Chair (LR)-Ph 1			107,494
Arm Chair (LR)-Ph 2				138,526
Arm Chair (LR)-Ph 3					150,786
Arm Chair (LR)-Ph 4						134,173
Arm Chair (LR)-Ph 5							132,966
Arm Chair Reupholster (LR)-Ph 1								39,885
Arm Chair Reupholster (LR)-Ph 2									51,462
Arm Chair Reupholster (LR)-Ph 3										56,016
Arm Chair Reupholster (LR)-Ph 4	36,300
Arm Chair Reupholster (LR)-Ph 5		36,014

 

[Greg G]

I'm not familiar with Cypress Harbour. How many buildings does it have?

 

[pedro47]

This comment is off the topics.

There are several things that are not mentions, the quality of furniture, carpet, kitchen cabinets and appliances are not make to last forever in today’s retail world. IMHO

 

[Greg G]

Was Cypress Harbour developed/built out in 5 phases? Like are there phase1 bldgs, phase 2 bldgs, ... ?

 

[ahdah]

My SurfWatch email is dated 9/13/23 and the important dates in it are 11/7/23 for the date of the Annual Meeting and 10/31/23 for the deadline to electronically submit your Limited Proxy (for candidate elections to the BOD.)

If you want to search your email it came from, "marriottvacationclubATenewsDOTmorrowsodaliDOTcom" but I don't think that's a valid address for return mail. The email gives this contact info:

If you have any questions regarding submitting your Limited Proxy electronically, please contact Morrow Sodali by email at mvci.info@morrowsodali.com.

If you have questions regarding the Annual Meeting, please contact Case Spencer, General Manager, by phone at 843-363-3401 or by email at Case.Spencer@vacationclub.com.

Thanks, I called the GM and he was not in. Said he would be back August 1st, so know that message is off. I will try calling the front desk to find out what happened. Thanks again. Ginny

 

[ahdah]

My SurfWatch email is dated 9/13/23 and the important dates in it are 11/7/23 for the date of the Annual Meeting and 10/31/23 for the deadline to electronically submit your Limited Proxy (for candidate elections to the BOD.)

If you want to search your email it came from, "marriottvacationclubATenewsDOTmorrowsodaliDOTcom" but I don't think that's a valid address for return mail. The email gives this contact info:

If you have any questions regarding submitting your Limited Proxy electronically, please contact Morrow Sodali by email at mvci.info@morrowsodali.com.

If you have questions regarding the Annual Meeting, please contact Case Spencer, General Manager, by phone at 843-363-3401 or by email at Case.Spencer@vacationclub.com.

Thanks so much I am on the phone now with SW, not able to speak to the GM so hopefully the woman at the desk can help me or can tell me where to go to get my packet. The GM is here she took my name and number and will have Chase call me today.

Thanks again!

 

[ahdah]

Thanks so much I am waiting for a call from Case Spencer the GM to find out what happened. Last year I did not get my bill, so when I saw on TUG I went to Marriott on line and paid my bill. I must have fallen through the cracks. Thanks again. Ginny

 

[ahdah]

Thanks again to all who helped me. TUG is so worth being a member. So to all the visitors, join!

 

[dioxide45]

I'm not familiar with Cypress Harbour. How many buildings does it have?

Based on this map, it looks like 22 buildings. IIRC, the last time they did a renovation it was just over a couple of years. So while the reserve study may show expediatures over a 10 year cycle, it seems they only spend it over a couple year cycle when they do the renovations. It is possible that they don't evenly collect for all reserve items at once. If renovations are due in 3 years, perhaps they put all the reserve fee toward that bucket and not as much into say roof that may not be due for 15 years.

 

[pedro47]

Senate bill 4D applies to all condos with 3 or more stories.

I suspect there will be more changes and increases for reserve funding in 2025;

• Effective December 31, 2024, unit-owner controlled associations must properly fund items identified in the structural integrity reserve study.
• Using or reducing these funds is prohibited and funds can only be used for the specific item identified in the study.

That means all Marriott’s, Independent, Hilton and Wyndham resorts over 3 or more stories tall will needs to increase their reserves funds. Correct Or incorrect.

 

[Greg G]

Based on this map, it looks like 22 buildings.

Thanks. After I posted the question, I realized a few pages into the reserve study they indicate what buildings are included in each of the 5 phases (dohhh).

So while the reserve study may show expediatures over a 10 year cycle, it seems they only spend it over a couple year cycle when they do the renovations. It is possible that they don't evenly collect for all reserve items at once. If renovations are due in 3 years, perhaps they put all the reserve fee toward that bucket and not as much into say roof that may not be due for 15 years.

That is possible.

After looking at the reserve study it appears the study creates a PROJECTED EXPENDITURES table year by year for the next 30 years (2023 - 2052), for each of the 1175 lower level component items (that cover all common areas and all the items in all phases of the buildings) they need to maintain/replace along with totals for each year. That includes inflation on the component cost which they use 3.22% per year for this study. It then uses that to create a CASHFLOW SUMMARY PROJECTIONS table that shows for each year the Beginning Reserve Balance , Contribution for the year, Interest Earned (on the current reserve balance which they use 2% interest rate for this study), Expenditures for the year, and Ending Reserve Balance for the year, for 30 years (2023-2052).

The Contribution column is what the study suggests the contribution (the part of the maintenance fees that go to these reserves ) for that given year should be.
Those suggested contributions are determined so that the reserve balance never goes negative in any of those 30 years (so that you always have money to do the replacement/maintenance at its projected point in time, i.e. the expenditures ) and actually has some minimum margin of reserve balance built-in for any year as a buffer (supposedly if the projected estimates are off or replacements need to be done earlier due to useful life). There are many, many ways to achieve the above, but the study also states planning goals in the addendum that indicate they strive to make the suggested annual reserve contribution stable or increase at a stable rate over the many years so that you're not seeing the contributions/maintenance fee yoyo from year to year or shoot up a massive percentage (say anything over 25%) in any one year.
In that regards the study suggests an 11.6% increase in the reserve fee for each year for the next 6 years and the a 0.4% increase each year for the remaining 24 years. So after 6 years the reserve fee as increased by some 93% total ( 11.6% per year compounded over 6 years), i.e. almost doubled, and then after the next 24 years it has increased by another 10% total (from the start of that 24 year period).

Something else I realized is I believe the Florida statues are stating that for any component that can impact the structural integrity of the building they will need to meet the fully funded definition starting in 2025 for the reserve balance and as you indicated they also cannot use that reserve for anything else. So the saving grace is I don't think it applies to furniture/fixtures, etc , which would not impact that integrity, although I could be wrong.

 

[BocaBoy]

There is no financial discipline in most timeshare resorts. Up 4% when no inflation and MUCH morwe when inflation ticks up. Regular condominiums are usually much more responsible. This is why I have sold all but one of my timeshares.

 

[bazzap]

There is no financial discipline in most timeshare resorts. Up 4% when no inflation and MUCH morwe when inflation ticks up. Regular condominiums are usually much more responsible. This is why I have sold all but one of my timeshares.

Many, perhaps most, but not all.
Phuket Beach Club MFs typically increase at below local inflation rate.

 

[TUGBrian]

this has turned into a WONDERFUL thread that owners need to read to better understand how your maintenance fees are spent!

 

[pedro47]

Are Florida timeshare owners looking at huge increasing in their MF, every year for the next decades ; because of Florida Senate Bill 4 D.

That is the question?

 

[dioxide45]

Are Florida timeshare owners looking at huge increasing in their MF, every year for the next decades ; because of Florida Senate Bill 4 D.

That is the question?

Huge increases are mainly reserved for Marriott owners in Florida. Other systems just have big increases.

 

[TUGBrian]

id certainly expect higher than normal increases for florida resorts due to this, as well as the staggering increases in insurance within the state, especially for waterfront resorts.

 

[pedro47]

Staggering homeowners insurance are increasing on OBX (Nage Heads, NC) and many major insurance companies are cancelling homeowners polices along the North Carolina shoreline.

 

[fskins]

Does anyone know if the MGV dues were approved at these increases? Between my dues and the exchange feees , Im going to be paying $4k a year. That's $575/night, I could book on trip advisor cheaper than that every year. Does anyone see a reason to keep a MGV unit??

 

[jwalk03]

Does anyone know if the MGV dues were approved at these increases? Between my dues and the exchange feees , Im going to be paying $4k a year. That's $575/night, I could book on trip advisor cheaper than that every year. Does anyone see a reason to keep a MGV unit??

How to you get to $4k per year? The fully funded proposal was for $2800. If you add in an exchange fee of $164, an Interval membership of $99, an eplus of $89 that's still only $3152.

 

[dioxide45]

How to you get to $4k per year? The fully funded proposal was for $2800. If you add in an exchange fee of $164, an Interval membership of $99, an eplus of $89 that's still only $3152.

Grande Vista locks off, so double the exchange fees. One could also be adding in upgrade fees to the calculation. All in it could be;

Lock off Fee - $99
Exchange Fees $164 x 2
Upgrade Fees - $99 x 3 (upgrading to 2BR with each half) - You can save on these with Platinum II membership, but then you have to add the upgrade fee back in.
II membership - $99
EPlus - $89 x 2

 

[jwalk03]

Grande Vista locks off, so double the exchange fees. One could also be adding in upgrade fees to the calculation. All in it could be;

Lock off Fee - $99
Exchange Fees $164 x 2
Upgrade Fees - $99 x 3 (upgrading to 2BR with each half) - You can save on these with Platinum II membership, but then you have to add the upgrade fee back in.
II membership - $99
EPlus - $89 x 2

Yes, but this still only gets you to $3800 and you would have to divide by 14 nights and not 7. (since your getting 2 weeks by locking off). So the per night is like $272 nowhere near the $575 the poster cited.

 

[dioxide45]

Yes, but this still only gets you to $3800 and you would have to divide by 14 nights and not 7. (since your getting 2 weeks by locking off). So the per night is like $272 nowhere near the $575 the poster cited.

Good point. I didn't catch that. I was just trying to get to the $4K number.

 

[fskins]

I have a 3 bdrm

 

[jwalk03]

I have a 3 bdrm

Are you trading the full 3-bedroom in Interval? If so you should lock it off instead. That makes the nightly math a heck of a lot better.