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RHC -Special Assessment

abc31

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:bawl: I just got a letter from RHC explaining that they are feeling the effects of the weak dollar and rising energy costs and will be charging a special assessment that is due Nov. 30th. It is based on how many points you have. Mine will be $380.00 for 60,000 points.
 
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caribbean

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Got mine in the mail yesterday. $150 for an Ambassador Week.
 

JMAESD84

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Special Assessment

How can a vacation club have unusual expenses that would warrant a "Special Assessment"?

I didn't think that RHC was a property owner. I thought that they just leased out inventory from contracted resorts.
 

abc31

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I was wondering the same thing. They claim that they are incurring expenses from the resorts that they have contracts with. I think it is outrageous. They claim that the assessment is to cover 2007,2008 & 2009. We had an increase in our annual fees. I can't imagine that their expenses went up that much. I don't think there is anyone that represents the owners, like a homeowners association. It seems that they can impose this whenever they decide to. They are only giving us until the end of November. There was no notice that this might come up.
 

caribbean

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They own several resorts in Mexico as well as have contracts with a lot of facilities worldwide. We were hit with a SA 2-3 years ago after hurricanes hit the resorts in Mexico and they had to do a lot of major work.
 

jennstall

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I just got my notice today as well. Considering how much oil prices have dropped over the past couple of months, I think it is bs, but don't really see a way around paying it. Thankfully mine is only $170.
 

abc31

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This is just a way to get more money without raising their annual fees. If they raise their annual fees, it is harder to sell new contracts. Most people would ask about the annual fees before making a purchase, but wouldn't know to ask about how many special assessments they have had. It is robbery. My assessment amount is $380 for 60,000 points. There was very little notice either. We should have had more warning that this was coming.
 

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I won a 30K point ebay auction a couple of weeks ago and wasn't expecting any quick action on the closing. So I wonder if and when I'll become responsible for this SA? Should be interesting but somehow I don't think I'll be lucky enough to miss out on this one.
Steve
 

abc31

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The letter from RHC said that it was to cover extra expenses from 2007, 2008 & 2009. Since you aren't the owner yet and the assessment is due in November, I would say you have a very good argument. I would definitely call the seller. You wouldn't be expected to pay maintenance for previous years, so maybe you could convince the seller to pay 2/3's of it (the 2007 & 2008 portion).
 

JMAESD84

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This is just a way to get more money without raising their annual fees. If they raise their annual fees, it is harder to sell new contracts. Most people would ask about the annual fees before making a purchase, but wouldn't know to ask about how many special assessments they have had. It is robbery. My assessment amount is $380 for 60,000 points. There was very little notice either. We should have had more warning that this was coming.
I curious as my letter says that the assessment amount is based on a flat rate of 0.79 cents per HC. (0.79 X 60,000 = $474) ??

In reading the operating rules, I don't see where they have the authority to charge a special assessment. The managment company is obligated to put forth an annual budget to cover that years anticiapated operating costs, and costs increases above the U.S. CPI can be rejected by a 70% vote of membership. Annual fees must be billed at least 30 days before due and are due on January 15 each year.

No budget or accounting of actual costs, just a note saying we need more money and to pay. Seems a bit like extortion to me.
 

abc31

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I curious as my letter says that the assessment amount is based on a flat rate of 0.79 cents per HC. (0.79 X 60,000 = $474) ??


In reading the operating rules, I don't see where they have the authority to charge a special assessment. The managment company is obligated to put forth an annual budget to cover that years anticiapated operating costs, and costs increases above the U.S. CPI can be rejected by a 70% vote of membership. Annual fees must be billed at least 30 days before due and are due on January 15 each year.

No budget or accounting of actual costs, just a note saying we need more money and to pay. Seems a bit like extortion to me.
Funny, my letter said it was based on a flat rate of .63 cents per HC. I never did the math. Spence, over on timeshareforums.com, said that his had a different rate. I think it was .80 cents.

I completely agree that this is extortion. How can they just decide to tack on a fee with nothing but a vague excuse? Something is really wrong with this, but I don't know what we can do about it.
 
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MaryH

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Does anyone know how much it is for 90K points? I am on the road so have not get it yet and expect mail to Canada would take longer.

Well I think what happens is that some of their contracted stuff i.e. Nell Gwynn House is in local currency. They lease or sublease several flats in Nell Gwynn and puts people in them. But if this is the case, a prudent company should hedge their currency exposure to fix the exchange rates. Actually USD had lost a lot of grounds in the last ocuple of years but re-gaining some grounds recently..

When they did the SA before, they offered something else in turn. Are they doing it this for this SA?
 

abc31

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Yes, they are offering a week at one of their all-inclusive Mexican or Dominican Republic Resorts.

I don't know what they want for 90,000 points. Everyone seems to be told a different rate per point.
 

MULTIZ321

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Just returned from a RHC week at the Affinia Dumont to have the RHC letter awaiting in the mail.

Our special assesment rate is .86 cents per Holiday Credit or $215.00.

If RHC receives payment by November 30th, 2008 - they are offering a 7-night
"Vacation Courtesy" at any Park Royal Hotel in Mexico; Oasis Hotel in Cancun; or
Princess Hotel in the Dominican Republic during 2009.


Richard
 

JMAESD84

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Just returned from a RHC week at the Affinia Dumont to have the RHC letter awaiting in the mail.

Our special assesment rate is .86 cents per Holiday Credit or $215.00.

If RHC receives payment by November 30th, 2008 - they are offering a 7-night
"Vacation Courtesy" at any Park Royal Hotel in Mexico; Oasis Hotel in Cancun; or
Princess Hotel in the Dominican Republic during 2009.


Richard
*SUBJECT TO AVAILABILITY. NOT VALID DURING PRIME SEASON. ALL INCLUSIVE MANDATORY FEE APPLIES.

I had to bold the fine print.

That sounds like the are willing to give us something that's worthless and that we won't use.

Here's an idea. Increase the annual fee in by the same percentage for everyone, based this increase on the total legitimate expenses as documented in the budget and put it to a vote of the membership.

Or just like it is supposed to be done.
 

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:eek: :( :bawl: :bawl: I own almost 200,000 points and am in Italy right now so I dont know what mine will be :(
 

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The letter from RHC said that it was to cover extra expenses from 2007, 2008 & 2009. Since you aren't the owner yet and the assessment is due in November, I would say you have a very good argument. I would definitely call the seller. You wouldn't be expected to pay maintenance for previous years, so maybe you could convince the seller to pay 2/3's of it (the 2007 & 2008 portion).
I think this is reasonable and I've followed up with a friendly e-mail to the ebay vendor requesting he share 2/3's of the cost. I'll let you know how it turns out.
Steve
 
J

JoeMid

Funny, my letter said it was based on a flat rate of .63 cents per HC. I never did the math. Spence, over on timeshareforums.com, said that his had a different rate. I think it was .80 cents.
The rate is different for different point levels, just like the rate for MFs is. See Spence's MF chart over there.

Does anyone know how much it is for 90K points? I am on the road so have not get it yet and expect mail to Canada would take longer.

When they did the SA before, they offered something else in turn. Are they doing it this for this SA?
90K - probably in the .6 - .7/pt range.

Yes, they are offering a week at one of their all-inclusive Mexican or Dominican Republic Resorts.

I don't know what they want for 90,000 points. Everyone seems to be told a different rate per point.
Same thing they did after the last hurricane SA; question is - what AI rate are they charging? I have a certificate for unlimited AI reservations for 5 years but the AI rate is 33% more than if I reserved with points, so they're getting their MFs back!

:eek: :( :bawl: :bawl: I own almost 200,000 points and am in Italy right now so I dont know what mine will be :(
.5 -.6/pt probably.
 

abc31

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question is - what AI rate are they charging? I have a certificate for unlimited AI reservations for 5 years but the AI rate is 33% more than if I reserved with points, so they're getting their MFs back!
So basically it is worthless. Do they really think we are that stupid?
 

bigrick

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:bawl: I just got a letter from RHC explaining that they are feeling the effects of the weak dollar and rising energy costs and will be charging a special assessment that is due Nov. 30th. It is based on how many points you have. Mine will be $380.00 for 60,000 points.
Now that the US has a strong dollar do you think we can convince RHC that the good times are rolling once again?
 

MaryH

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I have not received the letter yet in Canada but online it should $515 SA for 90K points contract I have.
 
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SteveH

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No help with SA

I think this is reasonable and I've followed up with a friendly e-mail to the ebay vendor requesting he share 2/3's of the cost. I'll let you know how it turns out.
Steve
Is anyone surprised? Here's what I got back from the vendor "After speaking to the resort, this is a 2009 special assessment. Per your contract, you are responsible for the 2009 fees. Please let me know if you have any additional questions."

Do the letters received by most of you specifically say 2007, 2008 and 2009?
:(
Steve
 
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