Special Assessments SVV?

[Captron]

Does any one know if there are any SA due/coming due/expected for SVV and if so what phase(s)? SVO wouldn't answer any questions that did not relate to properties that were not in my current portfolio and weren't available as a line item on my invoices.:annoyed:

Thanks

 

[Politico]

I hope not...

 

[pointsjunkie]

i have not heard of any special assessments.

 

[calgarygary]

They are detailed descriptions of mf on the current mf thread, and you will see that no one at VV is reporting special assessments.

 

[Captron]

Thank you all. I did not see any postings but wanted to confirm with the group. I appreciate the help.

 

[gumbert 2]

Well we own vistana resort spas and have already received the first installment bill for the new assessments and have already had to pay them as of jan 2009. The Spas board approved everything in their Nov and Dec boards and we are stuck. Only hope now is a class action. can't seem to get anywhere with that either as we don't know the names of the owners of Vistana Resort Spas, Cascades, Courts, Palms, Falls, Fountains, Springs, etc. Treading water at this point. Any owners interested just let us know: gumbert2@aol.com

 

[ccy]

There's a charge of $134.77 for Replacement Reserve in the '09 SVV MF.
Does anyone know what a Replacement Reserve is? Thanks.

 

[tlpnet]

Replacement reserves are the amount built into the MF each year based on the projected useful lives of the components of the property such as furniture, carpet, drapes, roofs, and other things that wear out and have to be replaced over time. Adequately funded replacement reserves SHOULD prevent Special Assessments. This has been a hotly debated topic on this board because of the large special assessments at SVR.

-tim

 

[jarta]

Replacement Reserves

Replacement reserves are "set asides" for that rainy day when capital improvements to the structures (new roof, replacement of resort vehicles, etc.) or replacement of the furniture, rugs and appliances become necessary. Ordinary maintenance expenses for repairs are supposed to be provided for as such in the yearly operating budget. The replacement reserves are for something much more substantial and unusual.

Without the amounts being held "in reserve" to pay for these expenses, they would have to be paid by a special assessment - or else deferred to a later date or, perhaps, never incurred.

It is good practice for a HOA to hire a company to do a reserve study which will tell the board what needs to be replaced (and at what cost and when) into the future. A HOA that does not plan ahead will become very unpopular with owners if a large special assessment becomes necessary. But, things do happen! Sometimes a roof goes bad or a car needs to be replaced or furniture wears out faster than you assumed.

There is an argument that can be made that the reserves collected from the current owners will mostly benefit the "down the road" owners, rather than the current owners. But, operating or capital and from assessments, reserves or special assessments, the money must be spent to maintain the property.

 

[BLUE AYES]

"There is an argument that can be made that the reserves collected from the current owners will mostly benefit the "down the road" owners, rather than the current owners. But, operating or capital and from assessments, reserves or special assessments, the money must be spent to maintain the property."

While the arguement could be made, it is both legally and economically incorrect. Unless a unit is brand new then the current owners are enjoying the use of previous owners of their units assessments or even the assessments of owners who purchased before them. If you at a newer unit or purchased early in the project's life span, then those assessments will benefit you directly as an owner and even indirectly as a seller by being able to show prospective buyers than your association has either a large reserve or just completed a maor assessment and updated the x, y, or z.

The only way it doesn't benefit you is if you purchased in order to resell ? or planned to put unit on market around time assessment hit.

 

[jarta]

BLUE AYES, ... "While the arguement could be made, it is both legally and economically incorrect."

In many States, including Florida, there is no statute that requires a reserve fund to be created. So, I'm not sure about the "legally incorrect." Many condos in the Miami area operate without a reserve fund because the older residents do not want to fund expenses for those who will survive them. If I wasn't clear, I'm not advocating that at all. I think it is a prudent practice to use a reserve fund.

As for economic "correctness," I'm not sure there's a correct and an incorrect way to fund necessary expenses. Capital or ordinary, they all must be paid for by the owners - one way or the other. Only the pocket picked or the timing of the call for funds matters in the long run.

And, BTW, I bought my timeshares to hold them and use them for the foreseeable future. Not to resell them. But, like everyone, I still care about costs while I hold and use. ... eom

 

[BLUE AYES]

I don't disagree with you, I too believe it is prudent to have a reserve fund. I do retract my legally incorrect statement. As a former president of a NYC Coop board, I was not thinking about Florida HOAs and Boards. I should have restricted my comments to "economically incorrect".

 

[jarta]

BLUE EYES, ... As a former president of a NY Coop board, you are probably entitled to medal (at the very least a Purple Heart for being a pincushion for the complainers). lol!

Former board members of any HOA have my everlasting sympathy. It's a misunderstood and often thankless job. But, it's sure interesting. ... eom