After Hurricane Matthew devastated the South Carolina coast in early October this year, many DVC owners were concerned about how the damage would impact their upcoming dues bills. Would DVC charge a special sssessment to owners in addition the dues bill? Would the annual dues increase substantially compared to last year? Well, the wait is over. The highly anticipated resort budget for Disney’s Hilton Head Resort was released to owners this week in preparation for the annual Condo Association Meeting that will be held in December.
In order to cover repairs related to Hurricane Matthew and NOT charge owners a special assessment, DVD (Disney Vacation Development Inc.) has made a loan to the Association in the amount of $750,000. This is the estimated amount not covered under the insurance policy due to the deductible. This loan will accrue interest at 1.33% per year compounded monthly and will be repaid by the Association in monthly installments over the next five years beginning January 1, 2017. The association will pay $155,126 towards the loan in 2017, which equates to a very small $0.11 per point for owners.
The estimated Annual Dues for the year January 1, 2017 through December 31, 2017 are $7.2728 per Vacation Point which is comprised of the estimated Annual Operating Budget ($5.2515 per Vacation Point), the estimated Annual Capital Reserves Budget ($1.6677 per Vacation Point) and the estimated ad valorem taxes ($0.3536 per Vacation Point).
Unlike other timeshare associations, DVD has taken counter measures to prevent owners being burdened with extra, unforeseen fees and they are very proud of the fact that owners have never been charged a special assessment. While there has been a 6.7% increase compared to 2016 dues, the loan for Hurricane Matthew’s damage is a very small portion of the dues bill ($0.11/pt). The bulk of the dues bill goes towards Capital Reserves (for future repairs) and the cost of managing the resort: Housekeeping ($1.30/pt), Administration and Front Desk ($1.26/pt), Maintenance ($.94/pt) and Management Fees ($.74/pt).
You can view the complete notice and resort budget here: Disney’s Hilton Head Resort