Special Assessments

[Hnaga]

I’m new to Hyatt. Wondering for those of you that have owned for a while, how much have u had to pay in special assessment?

my 2 units are in Florida. Worried about hurricanes, storms, etc.

 

[Sapper]

We own at Beach House in Key West and Highlands Inn. No special assessments. However, the insurance premiums have gone up most likely due to a combination of hurricanes (Beach House), fires (Highlands Inn), and (if I understand it correctly) a change in the insured property pool when management changed from Hyatt to ILG to MVC.

 

[PerryKing]

See the discussions here about the Hacienda Del Mar in Dorado Puerto Rico. Three years after the hurricane we are now being faced with a special assessment and a charge to replenish the reserve account, and an increase In this years maintenance fee to help offset the loss of income due to the many new defaults in paying the fee in past years and actual repossessions.


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[PerryKing]

“The fire” ... ?? What fire ? Please tell me about the fire at Highlands. Was it something that originated on the property. Or because it was located in the woods that were on fire nearby ? When did that happen ?

Or do you mean insurance rates are going up because of fires in all of California. ? And thus. no actual damage at Highlands ? Thanks. PPK


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[Kal]

IMHO, I would rather see a special assessment than increasing the MF. The assessment is a one-time event while the increase in MF will persist year-after-year.

 

[dioxide45]

“The fire” ... ?? What fire ? Please tell me about the fire at Highlands. Was it something that originated on the property. Or because it was located in the woods that were on fire nearby ? When did that happen ?

Or do you mean insurance rates are going up because of fires in all of California. ? And thus. no actual damage at Highlands ? Thanks. PPK


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Is Highlands potentially impacted by the California wildfires? If not now, in the future?

 

[PerryKing]

IMHO, I would rather see a special assessment than increasing the MF. The assessment is a one-time event while the increase in MF will persist year-after-year.

Yes , That's what I am assuming, but I cant get a hold of any of the board of directors to ask all the questions I had that they did not answer during the online Board Meeting.

Special assessment yes, maybe once, but as for he Reserve increase and Bad Debt expense looks like we may be stuck with both for more than just this year.

FYI: Maintenance fee before the hurricanes $1400, and now, after (this year) $3469

 

[dioxide45]

IMHO, I would rather see a special assessment than increasing the MF. The assessment is a one-time event while the increase in MF will persist year-after-year.

The problem with an special assessment is that the owner on record that year is paying the fee and everyone else that perhaps sold before or bought after is getting away with a reduced MF because of it. If run properly, a resort should very seldom ever need a special assessment.

 

[Sapper]

“The fire” ... ?? What fire ? Please tell me about the fire at Highlands. Was it something that originated on the property. Or because it was located in the woods that were on fire nearby ? When did that happen ?

Or do you mean insurance rates are going up because of fires in all of California. ? And thus. no actual damage at Highlands ? Thanks. PPK


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There have been no fires on the property at Highlands Inn. I was speaking broadly about fire in California impacting insurance cost over a large area.

 

[Sapper]

Is Highlands potentially impacted by the California wildfires? If not now, in the future?

Not currently. However, past performance does not guarantee future performance. I think any property in a wooded setting carries a risk of fire damage. If anything, the property has taken steps to help reduce the potential of problems. I remember a line item that they were replacing the cedar shake roofs with something less flammable. I think it was last year they cleared bushes, trimmed trees, and did some landscaping Items that help reduce the risk of fire spreading on property. Supposedly they tried to replace the wood burning fireplaces with gas fireplaces on a test unit and guests staying in that unit constantly complained, so they did not do any other units (not sure if they removed the gas insert or left it). So, the board has taken steps to mitigate risk.