Oceana Palms-Legacy Owners Being Punished

[Asia2000]

This is getting interesting now. Come January, we can do some simple comparisons of MF increases at majority trust resorts versus non-trust resorts.

Personally, I do not have a choice in the matter as I purchased after 6/20/10.

However, for those staying outside of the DC program, I count it a bonus to not "give up" your vote on the financial concerns of your resort.

 

[Bunk]

I suggest that the immediate thing to be done is to send an email to the Timeshare HOA and ask them how they will determine the incremental operating expenses necessitated by the points-based product

I say that based on Marriott's explanation about how it will handle the additional costs of short stays.



Here is a quote from a prior thread:



June 27, 2010, 12:36 PM #15
hipslo
TUG Member

BBS Reg. Date: Feb 26, 06
Location: Baltimore
Posts: 798

Resorts: Marriott Mountainside
I read somewhere in the legal docs (can't seem to find it now) that the increased cost associated with shorter stays are supposed to be funded out of (i) club dues, and (ii) mf's to be paid by those who purchase points directly (the mf's for direct points purchasers seem much higher than mf's paid under the current weeks system). I will post if I can find it.


Edited to add:

Here it is. The language below comes from the webinar presented by marriott to the hoa's, posted originally by pwrshft in another thread:

Maintenance Fees
Q: How will resorts calculate the maintenance fees due from each Owner if Points Owners are going to be occupying some percentage of the weeks available?
A: The Board of Directors of each existing MVC resort will continue to review and approve the association's annual budget and maintenance fees based on the association's anticipated operating and reserve expenses. The MVC Trust will pay annual maintenance fees to the owners association for each timeshare interest owned by the MVC Trust. Any incremental operating expenses necessitated by the points-based product will be borne by the MVC Trust Owners Association and the Exchange Company.
Q: How exactly are existing owners associations held financially harmless? For example, if 2,000 current Owners elect to participate in the new points-based program, do they no longer pay maintenance fees to their existing owners association so the remaining Owners' maintenance fees are increased proportionately?
A: Any incremental operating expenses necessitated by the points-based product will be borne by the MVC Trust Owners Association and the Exchange Company, and will not negatively impact the budget of any existing owners association. Current Owners who elect to enroll in the Exchange Program and/or purchase Beneficial Interests in the MVC Trust will continue to pay maintenance fees to their current owners association(s).
Q: I know there is an additional expense item in the MVC Trust Owners Association budget for the incremental costs necessitated by a points-based product. Who pays this incremental fee?
A: All expenses in the annual budget of the MVC Trust Owners Association are payable by Points Owners who have purchased Beneficial Interests in the MVC Trust. All Points Owners are members of the MVC Trust Owners Association. Owners who enroll one or more weeks in the Exchange Program will pay annual Exchange Company Dues, but they will not pay any fees related to the annual budget of the MVC Trust Owners Association because they are not members of the MVC Trust Owners Association.

 

[windje2000]

I suggest that the immediate thing to be done is to send an email to the Timeshare HOA and ask them how they will determine the incremental operating expenses necessitated by the points-based product

Resorts: Marriott Mountainside
I read somewhere in the legal docs (can't seem to find it now) that the increased cost associated with shorter stays are supposed to be funded out of (i) club dues, and (ii) mf's to be paid by those who purchase points directly (the mf's for direct points purchasers seem much higher than mf's paid under the current weeks system). I will post if I can find it.


Here it is. The language below comes from the webinar presented by marriott to the hoa's, posted originally by pwrshft in another thread:

Maintenance Fees
Q: How will resorts calculate the maintenance fees due from each Owner if Points Owners are going to be occupying some percentage of the weeks available?
A: The Board of Directors of each existing MVC resort will continue to review and approve the association's annual budget and maintenance fees based on the association's anticipated operating and reserve expenses. The MVC Trust will pay annual maintenance fees to the owners association for each timeshare interest owned by the MVC Trust. Any incremental operating expenses necessitated by the points-based product will be borne by the MVC Trust Owners Association and the Exchange Company.
Q: How exactly are existing owners associations held financially harmless? For example, if 2,000 current Owners elect to participate in the new points-based program, do they no longer pay maintenance fees to their existing owners association so the remaining Owners' maintenance fees are increased proportionately?
A: Any incremental operating expenses necessitated by the points-based product will be borne by the MVC Trust Owners Association and the Exchange Company, and will not negatively impact the budget of any existing owners association. Current Owners who elect to enroll in the Exchange Program and/or purchase Beneficial Interests in the MVC Trust will continue to pay maintenance fees to their current owners association(s).

Two observations

1. The only incorrect answer to the question of the amount of incremental operating expenses is zero.


2. The ORA should be required to disclose

a. the allocated costs and

b. associated compensation
​

for the incremental expenses of 'short stays' paid by the Trust as separate line items on the statement of operating results.

 

[Superchief]

Maintenance Fees
Q: How will resorts calculate the maintenance fees due from each Owner if Points Owners are going to be occupying some percentage of the weeks available?
A: The Board of Directors of each existing MVC resort will continue to review and approve the association's annual budget and maintenance fees based on the association's anticipated operating and reserve expenses. The MVC Trust will pay annual maintenance fees to the owners association for each timeshare interest owned by the MVC Trust. Any incremental operating expenses necessitated by the points-based product will be borne by the MVC Trust Owners Association and the Exchange Company.

A key issue will be how willing and able the Boad of Directors are to make sure the Trust is paying its fair share. I am concerned about our current candidate choices for the the two board of director positions at Oceana Palms. Below is a description of the background of the only candidate with relevant experience:
Vice President, Operations and Revenue Management, Marriott Vacationclub :
'I have worked for MVC for the last 25 years.....In my current role, I am responsible for developing and providing strategic support to MVC's Product Supply Management division regarding optimization of all usage inventories at resorts. In addition, I provide strategic and tactical support to regional teams in focusing on exceeding rental revenue targets...'

This person is a current board member and obviously allowed the recent increase in MF. I don't see how a person in this position will be able to stand up for non-Trust owners and represent their interests over Marriott's. I plan to vote for the other two candidates even though neither has any operations/ budget management experience and both appear to be only recent timeshare owners.

 

[Bunk]

Superchief…

Does your ballot/election notice have an email address or other way of reaching the candidates? If so, might not be a bad idea to ask the Marriott candidate to explain how he will handle this issue and whether he thinks this is a potential conflict of interest that will bar him from voting.

 

[BocaBoy]

I looked at the preliminary budget also. The bottom line that I see is I am paying more in MF's for 2011 than I paid with the assessment and MF's for the past two years (no further assessment). I do not know what to contribute it to. Higher operating cost, reserve fund, or DC points. Without the assessment you would think there would be a lower MF's.

bob

Bottom line in the preliminary 2011 budget for Sabal Palms (operating and reserve fees) is a 3.1% decrease. If you add property taxes, the 2011 total is between 2.8% and 3.0% lower than last year, depending on the season you own.