A Guide to Your Statement | Frequently Asked Questions

What costs are covered by my maintenance fees, and who approves the amount?
Maintenance fees are approved by your association's Board of Directors and include the Operating Fee, Reserve Fee and, in some states, Real Estate Taxes. For Hawaii properties, the Maintenance Fee includes the state General Excise Tax. Your statement also includes a voluntary ARDA contribution, Club Dues and Club Fees, which are not a part of your maintenance fees. For more details about these fees, please refer to the description section of your statement.

Why might maintenance fees change every year?
Your Board of Directors and on-site employees work hard to maintain and enhance the service and quality at each resort. Although every effort is made to reduce costs, certain costs increase over time. For example, a hurricane or other such event might cause the cost of property insurance to increase. Additional factors contributing to a change in maintenance fees may include increased cost of amenities and activities; expense-driven inflationary trends such as real estate taxes; insurance premiums and utility costs outside the control of your association; and cost-of-living wage increases for on-site employees.

When are maintenance fees due?
Annual maintenance fees are due on Jan. 1 of each year. New Owners also pay maintenance fees when selecting occupancy rights for their year of purchase. These fees cover the calendar year and are billed shortly after purchase. Prompt payments ensure ongoing upkeep and support to your Home Resort. Late fees, interest charges and other fees are assessed on unpaid balances as outlined in your association’s governing documents or as approved by your board, as applicable.

Why aren’t maintenance fees and taxes pro-rated for new Owners?
New Owners receive a full allotment of ClubPoints when selecting occupancy rights for their year of purchase and are responsible for paying the full year’s maintenance fees.

Why do I pay maintenance fees in January when I don’t occupy my unit until later in the year?
The due date for payment is established as part of your association’s governing documents or by your Board of Directors. Your Home Resort’s budget is based on all Owners paying the maintenance fee by the due date. Paying on time ensures the sufficient flow of funds for the daily operation of your resort.

Do I still need to pay the maintenance fees if I don’t occupy my unit this year?
Yes; as an Owner, you are responsible for paying the annual maintenance fees and taxes for your Home Resort regardless of whether you occupy your unit.

How do I receive information about my Home Resort’s budget?
Details about your association’s budget are included in the letter from your Home Resort’s General Manager, which accompanies the annual billing statement.

How does the board assess for repairs and replacements?
When planning for the long-term financial health of your association, the board uses a formal capital reserve study to determine the capital reserve requirements of the property. This study is prepared and updated by a thirdparty vendor and approved annually by the association’s Board of Directors.

When making these calculations, a number of items are taken into consideration, including the need to replace, repair and/or refurbish common elements and unit interiors such as roofs, pools, lobbies, furniture, appliances and carpets. These components are assigned life cycles based on how long they are expected to last before needing replacement. The study examines the cash flow required to replace each component based on its respective life cycle and how much will be spent in the coming year.

Your board uses this annual assessment tool to prepare for replacements or repairs over a 30-year period, thus helping to maintain your resort to a first-class standard and in keeping with HGV’s brand guidelines.

How are real estate taxes determined?
A property assessor for the county or city in which the property is located assesses the property every year and determines an assessed value. In some counties, the entire resort complex is assessed; in others, each building or unit is assessed separately. The assessed value may vary depending on the size of the unit or other factors, such as recent sale prices as reflected in the county records.

To determine the cost for each Owner, the amount stated in the tax bill is then divided by the number of timeshare interests within the unit or building(s). An increase in annual property value will result in an increase of taxes due. Cities and counties may also adjust millage rates or add new assessments, such as a bond issuance to fund roads or other projects. These adjustments will also affect real estate taxes owed. Some states consider real estate taxes a common expense and part of your maintenance fee assessment. Florida law provides that real estate taxes are not a common expense and must be billed as a separate line-item on your statement.

It is important to be informed and cautious when receiving unsolicited calls from a third party claiming to be able to sell, rent or advertise your timeshare. HGV does not share your information with any third parties. In addition, we would never solicit to rent your timeshare or hire a third party to sell or rent your timeshare on our behalf. For more information on this topic, visit my.hgv.com/fraud-alert.

The American Resort Development Association (ARDA) serves as the vacation ownership industry’s trade association and works to promote a fair and equitable legislative agenda.

ARDA is dedicated to engaging with the one million members that make up its Resort Coalition (ARDA-ROC). To that end, the organization has launched a website (ARDA-ROC.org) to help inform and motivate Owners to become more vocal with policy makers to preserve, protect and enhance vacation ownership.

We would like to thank those who have supported these efforts by making a voluntary $5 annual contribution to ARDA-ROC. Your Board of Directors has again included an option for this contribution on your billing statement. Contributions to ARDA-ROC are not typically tax deductible. Please seek advice from your own tax advisor.