HUGE 2017 MF's increases at SC Resorts / "Disaster Recovery" [Multi-threads merged.]

[MOXJO7282]

[Re OceanWatch] $242 (17.13%) increase. The highest 1 yr increase I've personally ever seen.
This is so disappointing. Not sure yet where the increase comes from but what could it possibly be to have an increase of that magnitude?

Again another situation where we get no fore warning and it just appears on the website.

[Post edited to add resort name after thread merged and re-titled. <-- SueDonJ]

 

[VacationForever]

Hurricane insurance?

 

[TheTimeTraveler]

$242 (17.13%) increase. The highest 1 yr increase I've personally ever seen.
This is so disappointing. Not sure yet where the increase comes from but what could it possibly be to have an increase of that magnitude?

Again another situation where we get no fore warning and it just appears on the website.

Annualized this figure works out to about $12,000 per year for each and every Villa on the property. So yes, it is a large increase when multiplied by the amount of Villas at Ocean Watch. The increase of 17% is well beyond the current level of inflation.



.

 

[littlestar]

Wowzer!

 

[WBP]

I've been thinking about a situation like this since Hurricane Matthew reared its ugly head.

In my opinion, owning "resort real estate," fraction or whole, comes with liabilities, that accompany owning real estate in popular resort destinations. A few examples:

The mountain resorts are subject to the extremes of winter (e.g. energy usage, wear and tear by skis, ski boots, snowboards, effects of extreme (cold temperatures));

The desert resorts are subject to bright sun, heat, energy usage (when temperatures are high), earth quakes (in California);

The oceanfront resorts are subject to the risk of flooding, hurricanes, salt water damage, sand damage to villas;

The caribbean and Hawaiian resorts are subject to higher costs of doing business, due to their remoteness;

and The urban resorts are subject to urban ills, including the risk of terrorism, that in this new world is an urban reality.

So, I can't think of a popular resort destination, that would motivate Marriott to build there, customers to buy timeshares there, and that does not have a bunch of liabilities and vulnerabilities, when it comes to annual maintenance fees, not the least of which are staff salaries, fringe benefits, and property insurance.

The one variable that is controllable, is the important role that a Homeowners Association Board of Directors plays, in ensuring that every line item expenditure of the HOA's Operating Budget passes the fiscal responsibility test. Hence, best one look over - carefully - - the slate proposed for their HOA's Board of Directors, and vote responsibly.

 

[BocaBoy]

Out of control maintenance fees are one major reason why the value of timeshares has plummeted in recent years and is unlikely to bounce back. It wasn't always this way. We owned at Sabal Palms for 10-15 years before fiscal responsibility went out the window a dozen or so years ago, and at that time Sabal Palms was actually selling at a very significant premium to the original developer prices. There are also other reasons for this drop in timeshare values, but that is not germane to the topic of this thread.

 

[dioxide45]

OceanWatch did have a lot more hurricane damage. I don't even thinkg the ocean/garden view tower is open yet since the storm. Perhaps they are just provisioning to be on the safe side.

 

[bazzap]

If they are provisioning for post hurricane costs already in the 2017 MFs, they must have agreed the budget extraordinarily quickly.
If so, Owners should be advised / able to see what has been included in the Reserve Replacement fund for this.

 

[disneymom1]

I looked at our Surfwatch maintenance fee statement. There was an extra $50 per unit labeled as "disaster recovery*". (2 bedroom $46.89
and 3 bedroom $54.48)

Here is the quote from statement
"* Anticipated expenses to be incurred by the Association in connection with damage from the impact of Hurricane Matthew, which includes costs, fees and expenses for debris removal, tree removal, remediation, water intrusion repair, roof repair, elevator repair, reconstruction, and repair and replacement of furniture, fixtures and equipment. Costs and expenses included in this line item are not anticipated to be reimbursable from the insurance company and would be applied to the Association's insurance deductible."

Was there any such line added to OceanWatch statement?

 

[dioxide45]

I would also suspect, claim or no claim, they expect their insurance premiums to increase next year.

 

[Superchief]

I would be interested in knowing what expenses are driving the increase. I've been monitoring expenses at my MVC resorts at the line item level to see whether increases are reasonable or justified. I've observed significant increases in 'activities' expenses at many resorts, and these are the types of expenses that can be better managed by the boards and GM's.

Were the increases in the operating fees or in the reserves? Hopefully it includes a one-time expense related to the hurricane.

 

[AlmostRetired]

Look to see what is driving this. We got a $153 increase (Monarch) that will last for 4 years. The question I was asked when I posted this was will it go down after 4 years. I assume yes but based on the question I decided to ask. Still waiting for a response. I am assuming Hurricane Matthews is keeping people busy and may impact the answer.

 

[SueDonJ]

I looked at our Surfwatch maintenance fee statement. There was an extra $50 per unit labeled as "disaster recovery*". (2 bedroom $46.89
and 3 bedroom $54.48)

Here is the quote from statement
"* Anticipated expenses to be incurred by the Association in connection with damage from the impact of Hurricane Matthew, which includes costs, fees and expenses for debris removal, tree removal, remediation, water intrusion repair, roof repair, elevator repair, reconstruction, and repair and replacement of furniture, fixtures and equipment. Costs and expenses included in this line item are not anticipated to be reimbursable from the insurance company and would be applied to the Association's insurance deductible."

Was there any such line added to OceanWatch statement?

How are you able to access the Operating Budget? I can see the MF amounts at the "Make Payment" button but there aren't any PDF's attached.

Whatever MVW is doing differently with MF's in our owners.marriottvacationclub.com accounts (as compared to my-vacationclub.com) is maddening. I suspect it may have something to do with each owner having individual log-ins not accessible to each other, in addition to whatever other ridiculousness they've managed to integrate into the new website. I wish they'd bring back the old way of linking the PDF statements in the emails that announce MF's, and fix the stupid website so it's in sync with those.

As for the additional monies added to the Budgets for hurricane-related expenses? I won't be happy if these were appended during the Annual Meeting without notice to the owners, and, I won't be happy if owners at all 8 HHI resorts are being assessed the same fees. The timing is very concerning, considering that the Annual Meeting agendas - including the Operating Budgets - were already set before the storm hit, and, there hasn't been much time since the storm to assess damage costs and finalize insurance recovery. This bears close watch at every HHI resort.

 

[davidvel]

How are you able to access the Operating Budget? I can see the MF amounts at the "Make Payment" button but there aren't any PDF's attached.

Whatever MVW is doing differently with MF's in our owners.marriottvacationclub.com accounts (as compared to my-vacationclub.com) is maddening. I suspect it may have something to do with each owner having individual log-ins not accessible to each other, in addition to whatever other ridiculousness they've managed to integrate into the new website. I wish they'd bring back the old way of linking the PDF statements in the emails that announce MF's, and fix the stupid website so it's in sync with those.

As for the additional monies added to the Budgets for hurricane-related expenses? I won't be happy if these were appended during the Annual Meeting without notice to the owners, and, I won't be happy if owners at all 8 HHI resorts are being assessed the same fees. The timing is very concerning, considering that the Annual Meeting agendas - including the Operating Budgets - were already set before the storm hit, and, there hasn't been much time since the storm to assess damage costs and finalize insurance recovery. This bears close watch at every HHI resort.

Another question to ask is whether Marriott is taking their standard 10-15% fee on top of the expenses for disaster damage. If they are this is disgusting.

 

[SueDonJ]

Another question to ask is whether Marriott is taking their standard 10-15% fee on top of the expenses for disaster damage. If they are this is disgusting.

And, bingo! Of course! I think you've hit on the reason why MVW is rolling the one-time expenses like these, which under MVCI had historically been separately quantified/billed as Special Assessments, into the Reserves. It's because the 10% Management Fee is assessed on the Reserves. (I had started a thread a few days ago asking this question, am closing it now.)

It's bad enough how suspect this nice round number of $50/interval on SW's budget looks considering the timing of the storm relative to the Annual Meeting. But now it's worse.

GGGGGRRRRR. Color me not happy today.

 

[disneymom1]

How are you able to access the Operating Budget? I can see the MF amounts at the "Make Payment" button but there aren't any PDF's attached.

Whatever MVW is doing differently with MF's in our owners.marriottvacationclub.com accounts (as compared to my-vacationclub.com) is maddening. I suspect it may have something to do with each owner having individual log-ins not accessible to each other, in addition to whatever other ridiculousness they've managed to integrate into the new website. I wish they'd bring back the old way of linking the PDF statements in the emails that announce MF's, and fix the stupid website so it's in sync with those.

As for the additional monies added to the Budgets for hurricane-related expenses? I won't be happy if these were appended during the Annual Meeting without notice to the owners, and, I won't be happy if owners at all 8 HHI resorts are being assessed the same fees. The timing is very concerning, considering that the Annual Meeting agendas - including the Operating Budgets - were already set before the storm hit, and, there hasn't been much time since the storm to assess damage costs and finalize insurance recovery. This bears close watch at every HHI resort.

I went to my-vacationclub account and looked under view payment/make payment. On the right corner is a link view ebilling/invoices. Under that page is 2017 Surfwatch operating budget. The $50 fee is listed under expenses. The total generated from this is $502,100. Increase in management fee is $4.13 per unit.

 

[SueDonJ]

I went to my-vacationclub account and looked under view payment/make payment. On the right corner is a link view ebilling/invoices. Under that page is 2017 Surfwatch operating budget. The $50 fee is listed under expenses. The total generated from this is $502,100. Increase in management fee is $4.13 per unit.

At that "View eBilling Invoices & Inserts" link I still get this, "No ownership fee package(s) currently available." Once more, GRRRR.

 

[VacationForever]

At that "View eBilling Invoices & Inserts" link I still get this, "No ownership fee package(s) currently available." Once more, GRRRR.

Me too... I only get high level breakdown from the "Make Payment" page.

 

[BocaBoy]

Me too... I only get high level breakdown from the "Make Payment" page.

And I can't even get the online payment to work. You would think they would have fixed this since last year.

 

[SueDonJ]

I was just on the phone with them for something else. I'm in a rush so will have to call in the morning to figure out why I still can't see SW's PDF or my Club Dues bill, but in the meantime she did say that she's had multiple calls yesterday/today about the online payment system not working, and they're looking into it.

 

[WBP]

This is an annual event with MVW.

This year, I expect that MVW will have a different source to place blame on their perpetual inability to maintain an operable, efficient website......a hack by Russia.

 

[pedro47]

Look to see what is driving this. We got a $153 increase (Monarch) that will last for 4 years. The question I was asked when I posted this was will it go down after 4 years. I assume yes but based on the question I decided to ask. Still waiting for a response. I am assuming Hurricane Matthews is keeping people busy and may impact the answer.

The Hurricane Matthews did a lot of damage along the coast and inland North & South Carolina and the Commonwealth of Virginia.

Yes! Hurricane Matthews is keeping federal, state, city government, insurance companies and affective residences very busy cleaning up, plus filing insurance and FEMA Claims. There are lots of tree still down and mole damages to thousand homes.

In many areas the federal flood zone is in a mess. Because many areas flooded that were not in the flood zone.

 

[MOXJO7282]

So I left a detailed message for a Fred Myers in MOW sales who someone directed me to. Not sure why a sales guy would know but no one else could help me at MOW or Corp Marriott so we'll see what he has to say on where this increase comes from.

I again assume its from the hurricane but being left in the dark I have no idea. If it is then "it is what it is" but what bothers me most is we received no fore warning of the extreme increase coming other then some general comments of possible hurricane related costs.

 

[AlmostRetired]

The Hurricane Matthews did a lot of damage along the coast and inland North & South Carolina and the Commonwealth of Virginia.

Yes! Hurricane Matthews is keeping federal, state, city government, insurance companies and affective residences very busy cleaning up, plus filing insurance and FEMA Claims. There are lots of tree still down and mole damages to thousand homes.

In many areas the federal flood zone is in a mess. Because many areas flooded that were not in the flood zone.

I understand what they are going through. I lost two cars in my driveway, one in front of my house, a tree on my deck/roof and 4 feet of water in my basement from Superstorm Sandy. I also was not in a flood zone . Recovery is a time consuming process that challenges even the most patient person. It is a costly process even with insurance, FEMA and loan programs. I feel for the people impacted and wish a speedy recovery.

 

[dioxide45]

So I left a detailed message for a Fred Myers in MOW sales who someone directed me to. Not sure why a sales guy would know but no one else could help me at MOW or Corp Marriott so we'll see what he has to say on where this increase comes from.

I again assume its from the hurricane but being left in the dark I have no idea. If it is then "it is what it is" but what bothers me most is we received no fore warning of the extreme increase coming other then some general comments of possible hurricane related costs.

You should be contacting your board of directors. THere should be a link in the Owes Association section of the website.

https://owners.marriottvacationclub.com/timeshare/mvco/education/ownersassociationag