MROP Special Assessment [Multi Resorts Ownership Plan]

[jss223]

Just got a letter dated April 1 from MROP with a special assessment of $1,057 payable on April 30 - three days from now.

Any MROP members with thoughts about this? Seems like MROP is not financially viable and hasn't been for a while - and that the board did not disclose this.

 

[Park]

Just got mine and will likely walk away with the other 32% default people.

 

[SueDonJ]

Moderator Note: The title of this thread has been edited, twice, to spell out the meaning of the MROP acronym for others, like me, who are reading the forum and don't know it. I did a search to find the meaning but if what I've found is incorrect, please let me know how to correct it instead of deleting the edit. According to the TUG Rules, "You may not alter, edit, or delete any edits introduced into your message by a Moderator or Administrator."

 

[pedro47]

Just got a letter dated April 1 from MROP with a special assessment of $1,057 payable on April 30 - three days from now.

Any MROP members with thoughts about this? Seems like MROP is not financially viable and hasn't been for a while - and that the board did not disclose this.

Can you explain your thread post in more details?

 

[DaveNV]

Moderator Note: The title of this thread has been edited, twice, to spell out the meaning of the MROP acronym for others, like me, who are reading the forum and don't know it. I did a search to find the meaning but if what I've found is incorrect, please let me know how to correct it instead of deleting the edit. According to the TUG Rules, "You may not alter, edit, or delete any edits introduced into your message by a Moderator or Administrator."

Sue, the edit is the correct name. MROP is a mini-system with units located in resorts owned by others. I don't know if they have any wholly-owned resorts of their own. VRI took over managing things several years ago, about the time I sold my MROP ownership. There may be more information here: https://www.multi-resorts.com

Dave

 

[jss223]

Can you explain your thread post in more details?

Sure. MROP is a timeshare association formed in the 70s. It has seemed to have a combination of financial mismanagement, owners getting elderly or passing away and COVID preventing travel. Maintenance has been going up a lot, now they have sent a "special assessment" of $1,057 due in 3 days because they claim to have a deficit of $1.5M. If all members paid $1,057 it would be much more than $1.5M, so these numbers are very dubious. Most likely many people will not pay the $1,057 and MROP will not be viable going forward. I am inquiring how my fellow MROP members feel about this. Personally I would pay if I thought it was a one time assessment, but don't believe that would be the case.

 

[ruzbasan]

We received the MROP letter as well. We've been a member since 2011 after purchasing from an original owner. Up until now we've been happy with MROP as we always trade their Hawaii location into RCI. Receiving this special assessment caught us off guard as we didnt get any notification that is was coming. Do we pay it and take a gamble that all will be good or just write it off?? We only paid $3000 for it. It wouldn't be a great loss but would miss not having it. They state they have a 32% membership delinquency, that's the scary part.

 

[Sanwang]

We received the MROP letter as well. We've been a member since 2011 after purchasing from an original owner. Up until now we've been happy with MROP as we always trade their Hawaii location into RCI. Receiving this special assessment caught us off guard as we didnt get any notification that is was coming. Do we pay it and take a gamble that all will be good or just write it off?? We only paid $3000 for it. It wouldn't be a great loss but would miss not having it. They state they have a 32% membership delinquency, that's the scary part.

Charging paying owners or members for deliquency should never be solution. It's only gonna snowballing into irreversible problems. If we are paying for default weeks, we should be getting extra vacation week in return. Also, HOA should try to rent those default weeks out to minimize the financial damage as soon as they know the owners are going to default their MF.

 

[JulieAB]

Their nitpicky rules don't help, like when you can book, what resorts, what years in a row, bonus weeks, etc. Glad I left when I did last year. I liked the resorts, but I found the management terribly frustrating.

 

[Passepartout]

I'm among the 32%. Buh-bye.

 

[jss223]

We received the MROP letter as well. We've been a member since 2011 after purchasing from an original owner. Up until now we've been happy with MROP as we always trade their Hawaii location into RCI. Receiving this special assessment caught us off guard as we didnt get any notification that is was coming. Do we pay it and take a gamble that all will be good or just write it off?? We only paid $3000 for it. It wouldn't be a great loss but would miss not having it. They state they have a 32% membership delinquency, that's the scary part.

 

[jss223]

Charging paying owners or members for deliquency should never be solution. It's only gonna snowballing into irreversible problems. If we are paying for default weeks, we should be getting extra vacation week in return. Also, HOA should try to rent those default weeks out to minimize the financial damage as soon as they know the owners are going to default their MF.

Agree with all of the posts. If their solution to a 32% delinquency rate is to make the rest of us pay double maintenance, then the delinquency rate will increase enormously and MROP will go into Chapter 7 bankruptcy. We enjoyed use of our MROP week, but it doesn't make sense to pay when the problems are indeed almost certainly irreversible.

 

[gravityrules]

Just got the April 1st dated letter yesterday (April 30) with payment delinquent on May 1st. No Amended operating budget enclosed as claimed in the letter. This is unacceptable as a business practice, reflects poorly on both MROP and VRI. I will pay the SA since they are holding current already paid for reservations hostage but I will be contacting the BOD regarding the future of MROP.

 

[jss223]

Just got the April 1st dated letter yesterday (April 30) with payment delinquent on May 1st. No Amended operating budget enclosed as claimed in the letter. This is unacceptable as a business practice, reflects poorly on both MROP and VRI. I will pay the SA since they are holding current already paid for reservations hostage but I will be contacting the BOD regarding the future of MROP.

Would be interested in any information you get regarding the future.

 

[T-Dot-Traveller]

Would be interested in any information you get regarding the future.

Hi @jss223 - @gravityrules - @Passepartout - @JulieAB - @DaveNV - @Sanwang - @tschwa2 - @SueDonJ

I think @TUGBrian may have posted relevant information this morning [ May 3rd]
Capital Vacations buys VRI

Capital Vacations has bought VRI which manages MROP.

 

[T-Dot-Traveller]

Here is a thread that MROP owners may want to read :

[Advise Needed] -Possibly buying Capital Vacations Club Gold Membership - April 2021

 

[FunnyFarm]

Would be interested in any information you get regarding the future.

Got the same 13th hour notice. Had a HI reservation in 3 weeks so I needed to pay and avoid risk of no room at the inn

 

[T-Dot-Traveller]

Hi MROP owners -
@gravityrules @Passepartout @ruzbasan
@FunnyFarm @jss223 @JulieAB @Park

Any update or additional info on how the special assesment and VRI purchase by Capital Vacations has evolved.

 

[Passepartout]

Hi MROP owners -
Any update or additional info on how the special assesment and VRI purchase by Capital Vacations has evolved.

Nothing here, but I've decided it's their move. I'm done with 'em.

 

[maggie]

I am also a MROP owner. I'm going to contact them about the exit program. I did that several years ago and was told they didn't have one except for hardship cases. That may have been bad information. I don't want to pay the special assessment and get nothing for it. I would be glad to give it away if anyone wants it.

 

[dcmc4869]

Does anyone know what will happen if an owner just does not pay the special assessment and the upcoming maintenance MROP says that they will send unpaid assessments to collections, but will they actually do that?

 

[Passepartout]

Does anyone know what will happen if an owner just does not pay the special assessment and the upcoming maintenance MROP says that they will send unpaid assessments to collections, but will they actually do that?

Like all things, 'It depends'. At some point, they might auction a whole bunch of defaulted members to a collection agency with the understanding that they split whatever they can collect with the board. It may simply amount to a letter or two to see who they can browbeat into paying, along with adding late charges, reinstatement fees, etc. For something like a membership like MROP is, though there is nothing to foreclose and there is no penalty they can impose except termination of the membership. Which is probably what most members want when the costs become higher than the perceived benefit.

 

[Sanwang]

Just received an email saying the management board has decided to grant an extra week to all the members who paid their special assessment fee. I think it is a pretty nice gesture and definitely make me feel better.

 

[jss223]

It appears that the special assessment was imposed fraudulently. While under 7.04 of the MROP bylaws special assessments are allowed, they left out the following which was in the bylaws when I acquired my membership:

"However, Special Assessments shall not, in the aggregate, exceed 25% of the Maintenance Assessment for the applicable fiscal year, without a vote of the majority of a of a quorum of the members to approve such Special Assessment beyond 25%"

The special assessment was far more than 25% of the maintenance. Indeed it was close to 100%. And there was no membership vote.

It appears that the board has committed a fraud on the members, and clearly breached its fiduciary duty.

 

[gravityrules]

No, that provision is not in the January 24, 2012 MROP bylaws, although it was in the bylaws I have from 2007.
The SA was effectively an extra year's assessment.
I've already reserved that extra week offered to those who have paid the SA.

FWIW, Shoreline Towers (Gulf Shores, AL) is no longer available for new reservations. I expect the pool of weeks will have to shrink due to delinquencies. Leased weeks (which I think Shoreline Towers were leased weeks) are likely easier to deal with. VRI manages that property too. Owned properties, if any are to be sold, likely will take more time. Certainly don't want a vulture 'vacation club' like Capital taking control of MROP.