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Pt at Poipu Special Assesment

Fisch

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https://www.diamondresorts.com/hoa/20111005/PoipuOwnerLetterandInserts.pdf

Don't know if the above link will work unless you are an owner.

The water intrusion project is going to be a big one. $5893 per week owned.
$2000 this year along with the normal yearly maintenance fees. the same the following year.

They will take Bldg 4 off line the 2nd half of 2012. The following years two more buildings will be off line, and the final year will have the last bldg offline for repairs.

I'll be in Kauai later today and can ask questions if anybody has some. Let me know.

Al

From the letter:


The Project—Extensive Repairs to All Buildings
Following the investigations and realizing the extent and complexity of the repairs needed, your AOAO Board worked with
a team of experts including an envelope repair and retrofit designer, a structural repair designer, a local architect as a liaison
for permitting, and a nationally recognized project manager to establish the scope of the project. In general, the project will
repair damage to wood framing and replace structural ties, straps and fasteners, as well as structural deficiencies based on
current building codes. The project is also designed to stop leaks and the conditions causing damage. This will extend the
service life of the buildings. More specifically, the project includes:
• Making roof repairs
• Installing new drainage cladding (siding) system and proper flashings
• Retrofitting existing structural fasteners and connections
• Repairing or replacing wood framing
• Installing new structural shear walls
• Installing new above-grade and below-grade waterproofing
• Repairing or replacing windows and doors
• Retrofitting air conditioning units and installing new flashings
• Repairing interior finishes as necessary
• Permanently replacing all soffits

Water Intrusion Assessment Cost
The total amount of the water intrusion assessment, which includes all construction costs, legal and consulting fees, permits,
Hawaii general excise tax and other items is approximately $65.8 million, or $5,893.32 per interval.
Project Timeline
The project will start in June 2012 and take approximately five years to complete. The current schedule calls for one
building, Building 4, to be completed by the end of 2012, two buildings to be completed each year through 2016 and one
building in the first half of 2017. With buildings being out of service for the next five years, space will be limited; therefore
if you are planning to visit the resort during this time, please make your reservation early. If you are a fixed unit/week owner
and your reservation coincides with the time your building is being repaired, you will be notified that your unit will be
unavailable during that time and you will be moved to another unit. Best efforts will be used to place you in comparable
accommodations.

Water Intrusion Project/Association Website
Additional information and updates can be found at our owners-only website. If you have not used the website before, simply
go to DiamondResortsHOA.com and enter the same username and password that you have created for DiamondResorts.
com. If you are having difficulty accessing the website, call 1.855.624.4390 to speak to a representative. After you have
entered your username and password, select “The Point at Poipu” under the drop-down menu and click on the “Water
Intrusion Project” tab at the top of the page.
If you are unable to attend any of the meetings, the informational meeting presentation will be posted on the Water Intrusion
Project page. Several Frequently Asked Questions and photos of the damage are also posted. Please frequent this site for
up-to-date information about The Point at Poipu, the progress of the project and to ask questions
 

T_R_Oglodyte

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I've known for years that it was coming and that it was going to be a whopper. This is bigger than I thought.

Ya gotta hope they do right so that after the job is complete building maintenance will be less since they won't be patching everything as they have been and fixtures will be better protected against rust and salt damage.
 

ronparise

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Am I doing the math right? 6000 per interval, 50 intervals per unit = $300000 per unit?
 

wilma

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Red Wolf Lakeside Lodge, Hanalei Bay Resort, Sweetbriar Lake tahoe, Marriott Canyon Villas, Hyatt High Sierra, Point at Poipu
$65 million....:rolleyes: :rolleyes: unbelievable.
 

therajman

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65 MILLION dollars worth of water damage? What kind of damage can cost this much to fix?

I find it hard to believe. Isn't this gross negligence? Easier to stiff the owners....
 

Kauai Kid

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Is the special assessment the same for all units 1 br, 2 br, and 3 br?

I haven't received anything from Diamond regarding the SA.

Thanks for bad news,

Sterling
 

Poobah

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Assessment

I received the email with the amount and when I logged in to get my bill all I got was the error. Don't have a hard copy yet of the bill.

We have all known that this was coming, like others I didn't expect it to be this large. I think transparancy is called for, to make sure that everyone is paying their fair share of this e.g. DRI is paying for the units they own, what cost has been allocated to the Trust, who is the contractor, what were the other bids, etc.

DRI could have done a better PR job on this, but PR with the owners doesn't tend to be their strong suit particularly when bad news is involved. No one likes "surprises.":mad:

The Owners Meeting this March is going to be really interesting!

Cheers,

Paul
 

Kauai Kid

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Link worked for me. Thanks--I think??

Sterling


https://www.diamondresorts.com/hoa/20111005/PoipuOwnerLetterandInserts.pdf

Don't know if the above link will work unless you are an owner.

The water intrusion project is going to be a big one. $5893 per week owned.
$2000 this year along with the normal yearly maintenance fees. the same the following year.

They will take Bldg 4 off line the 2nd half of 2012. The following years two more buildings will be off line, and the final year will have the last bldg offline for repairs.

I'll be in Kauai later today and can ask questions if anybody has some. Let me know.

Al

From the letter:


The Project—Extensive Repairs to All Buildings
Following the investigations and realizing the extent and complexity of the repairs needed, your AOAO Board worked with
a team of experts including an envelope repair and retrofit designer, a structural repair designer, a local architect as a liaison
for permitting, and a nationally recognized project manager to establish the scope of the project. In general, the project will
repair damage to wood framing and replace structural ties, straps and fasteners, as well as structural deficiencies based on
current building codes. The project is also designed to stop leaks and the conditions causing damage. This will extend the
service life of the buildings. More specifically, the project includes:
• Making roof repairs
• Installing new drainage cladding (siding) system and proper flashings
• Retrofitting existing structural fasteners and connections
• Repairing or replacing wood framing
• Installing new structural shear walls
• Installing new above-grade and below-grade waterproofing
• Repairing or replacing windows and doors
• Retrofitting air conditioning units and installing new flashings
• Repairing interior finishes as necessary
• Permanently replacing all soffits

Water Intrusion Assessment Cost
The total amount of the water intrusion assessment, which includes all construction costs, legal and consulting fees, permits,
Hawaii general excise tax and other items is approximately $65.8 million, or $5,893.32 per interval.
Project Timeline
The project will start in June 2012 and take approximately five years to complete. The current schedule calls for one
building, Building 4, to be completed by the end of 2012, two buildings to be completed each year through 2016 and one
building in the first half of 2017. With buildings being out of service for the next five years, space will be limited; therefore
if you are planning to visit the resort during this time, please make your reservation early. If you are a fixed unit/week owner
and your reservation coincides with the time your building is being repaired, you will be notified that your unit will be
unavailable during that time and you will be moved to another unit. Best efforts will be used to place you in comparable
accommodations.

Water Intrusion Project/Association Website
Additional information and updates can be found at our owners-only website. If you have not used the website before, simply
go to DiamondResortsHOA.com and enter the same username and password that you have created for DiamondResorts.
com. If you are having difficulty accessing the website, call 1.855.624.4390 to speak to a representative. After you have
entered your username and password, select “The Point at Poipu” under the drop-down menu and click on the “Water
Intrusion Project” tab at the top of the page.
If you are unable to attend any of the meetings, the informational meeting presentation will be posted on the Water Intrusion
Project page. Several Frequently Asked Questions and photos of the damage are also posted. Please frequent this site for
up-to-date information about The Point at Poipu, the progress of the project and to ask questions
 

MOXJO7282

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So was the reserve grossly underfunded or what? I've never heard of such a significant SA. Any mismanagement going on?

I really feel sorry for multi-week owners.
 

tvandyke

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Didn't even get a kiss...

They have called me twice in an attempt to explain. I'm at a complete loss as to understand how "water intrusion" damage means we have to replace the roof on every building, a bunch of AC units, windows and doors.

They warned me that they will sue to collect and I won't be able to unload the units to one of those time share escape deals until I've paid the assessment.
 

Kauai Kid

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They have called me twice in an attempt to explain. I'm at a complete loss as to understand how "water intrusion" damage means we have to replace the roof on every building, a bunch of AC units, windows and doors.

They warned me that they will sue to collect and I won't be able to unload the units to one of those time share escape deals until I've paid the assessment.

They are based in Vegas--that should tell you something.

Sterling
 

MOXJO7282

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They have called me twice in an attempt to explain. I'm at a complete loss as to understand how "water intrusion" damage means we have to replace the roof on every building, a bunch of AC units, windows and doors.

They warned me that they will sue to collect and I won't be able to unload the units to one of those time share escape deals until I've paid the assessment.

That is missed up. I'm sure there are many owners who bought multiple weeks cheap thinking they had a great value and now they're facing potentially $5.8k per week.
 

lv_maui

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Collection sb interesting

This is going to be quite interesting to see how the collection is played out. Normally, I would say that Diamond would not be concerned if people did not pay since they would buy their week from the HOA in exchange for payment of the SA. Then, they would own a "cheap" week. But this is not going to be a cheap week for DRI.

Old school timeshare rules say that product cost should be about 25% of the sales price. $5,893 means that the sales price would be $23,572 per week which is about what the weeks are going for at the Sales center. But DRI's been selling cheap inventory at much lower than 25% for many years now by taking over foreclosed weeks.

So, I can see where DRI might not want the week back. Late fees go to the management company so I can see where DRI might want to pursure collection of the money from the owner versus taking back the week. What I mean is that DRI could really do hard collection because in the past, DRI would just take the week back and collection efforts ended. Now they may try and collect the $5,893 the hard way by utilizing litigation. That still would seem to be extremely time consuming.

This will be ground breaking news as this progresses.






They have called me twice in an attempt to explain. I'm at a complete loss as to understand how "water intrusion" damage means we have to replace the roof on every building, a bunch of AC units, windows and doors.

They warned me that they will sue to collect and I won't be able to unload the units to one of those time share escape deals until I've paid the assessment.
 

lv_maui

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I would predict a class action lawsuit will be filed pretty soon. There will be all kinds of accusations of mismanagement. No reserve fund would contemplate this kind of repair.


So was the reserve grossly underfunded or what? I've never heard of such a significant SA. Any mismanagement going on?

I really feel sorry for multi-week owners.
 

timeos2

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This is basically replacing the foundation of a resort "built on sand". Since DRI did not build this resort - Embassy/Sunterra did - they are likely caught as off guard as every other owner has been. No one expects such a basic structural requirement of any large project to be faulty. It can happen - in this case it did - and the resulting costs can be staggering. Years ago a similar failure played out at a bay side condo my dad once owned - he had sold a few years before it was discovered fortunately - and the costs for that Association for just one small building out of 8 were in the low millions back in 1988! Today it would be $10 million or more for the same work & to meet new codes.

What an unfortunate situation but that is the risk you take with any real estate/condo/timeshare purchase. Most don't go this bad but when they do it can be spectacular. It will be rough on these owners but it has to be done unless the project is terminated by super owner vote - with DRI holding so many weeks and if they want it repaired then termination is not going to be an option. And even then the costs to secure & sell the property would be very high in this condition so owners are likely better off paying to make things right rather than paying to tear it down.

It seems the Board already looked into possible lawsuits & found, like so many others, no one from 10+ years ago left with deep pockets to sue. The Board can't be sued as they certainly didn't cause this. It is up to the owners to make it right. I feel sorry for them as they couldn't have known this would occur. Good luck to all involved.
 

MOXJO7282

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It terrible to think but you have to figure there are many older owners who are multiweek owners that are getting socked with this. There's noonw that has liability? They talk about a defective system, what about the maker of the system?
 

lv_maui

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The History is that a partnership between Argosy Koar and Hal Real Estate acquired the resort that was already built. It was a failed for-sale condo project. Argosy Koar became Sunterra and then Sunterra bought out HAL Real Estate. Then, Sunterra became Diamond.

It would be interesting if Embassy Suites got dragged into what I see as a for sure class action lawsuit by a group of owners. Embassy was never an owner but did franchise the resort as Embassy Vacation Resort

This is basically replacing the foundation of a resort "built on sand". Since DRI did not build this resort - Embassy/Sunterra did - they are likely caught as off guard as every other owner has been.
 

Barbeque

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I wonder how much overhead and profit is in this assessment??

Plus aren't their maintenance fees pretty hefty????????
 

Dollie

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Pictures

I don’t remember seeing these the first day I read the documents on the HOA sight. They show what the problems are. To see them: Log onto the Diamond HOA sight and go to The Point at Poipu; Select either Water Intrusion Project at the top right of the page or the moving text a little lower down; the project page displays; the last pick in the Information and Photos list has the pictures.
 

artringwald

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Insurance company

Anybody know which insurance company denied the claim? I wan to make sure that I don't use them.
 

Fisch

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We are here now.
I was talking to a few other owners that sat in one the "owners update"
And apparently if you are unable to pay, to avoid foreclosure, you can sign over your deed at the resort right now and walk away.


Oh yeah, if you but into points, they will cover your special assessment.
 

dougp26364

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Spinnaker French Quarter Resort Branson
We are here now.
I was talking to a few other owners that sat in one the "owners update"
And apparently if you are unable to pay, to avoid foreclosure, you can sign over your deed at the resort right now and walk away.


Oh yeah, if you but into points, they will cover your special assessment.

At least they are taking deed backs. I'm pretty certain I read somewhere that someone had called and was told this was no longer an option. The deed back program seems to be a mystery to DRI phone reps when people call and ask about it.

As for buying into trust points, I'd be asking how this special assessment will be rolled into the trust point MF's, what they were last year and what they are for 2012. If the answer is they haven't been calculated as of yet, I'd be leary.
 

T_R_Oglodyte

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At least they are taking deed backs. I'm pretty certain I read somewhere that someone had called and was told this was no longer an option. The deed back program seems to be a mystery to DRI phone reps when people call and ask about it.

As for buying into trust points, I'd be asking how this special assessment will be rolled into the trust point MF's, what they were last year and what they are for 2012. If the answer is they haven't been calculated as of yet, I'd be leary.

The DRI phone reps are clueless about the deedback program. DRI only seems to talk about it at the DRI owner message boards.

Yesterday someone who was 15000 point owner in the Hawaii Collection posted their breakdown of fees for 2012.
 

dougp26364

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Spinnaker French Quarter Resort Branson
The DRI phone reps are clueless about the deedback program. DRI only seems to talk about it at the DRI owner message boards.

Yesterday someone who was 15000 point owner in the Hawaii Collection posted their breakdown of fees for 2012.

I memory serves me correctly, you have to locate and contact the loss mitigation dept.
 
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