Complaint against WSJ MF's and Starwood's response
This was a complaint by one owner to Starwood about the outrageous maintenance fee increases at the Westin St. John and their response to it. I find it especially interesting how it is used to get around the 2/3 ownership approval requirement stipulated in their own by-laws!! Below the complaint is Starwood's B.S. repsonse to these owners.
GeneNWendy
Initial Letter to Starwood
Subject: Westin St John MF Increases Unconscienable!!!
Dear Aixia Garcia:
This missive is long overdue but I want to express my total displeasure regarding the oversight and mis-management of the Starwood vacation ownership board, the starwood alliance and anyone else that may be responsible for the exorbitant MF cost increases over the last 10 years.
My wife and I fell in love with St John and decided to purchase our (one bedroom villa) timeshares at the Westin St John back in 1999. Contrary to the sales pitch provided when we purchased our weeks, we never were under the misguided impression that the purchase would be a "Great Investment". However, we did believe that in the long run after the initial purchase price was covered, we could expect a lifetime worth of vacations at a reasonable price. This has, painfully, not been the case.
Since we purchased our timeshares our MF's have increase from $450.00/week to over $2400.00/week!!! That's a 530% increase and TOTALLY UNSAT! A couple of years ago the SWDVO board attempted to implement a "one time (over 3 years) refurbishment fee above the cost of the yearly refurbishment fees already billed. This was put out to the owners for a vote and I voted NO!! Because this measure didn't get the requisite percentage of votes the plan had to be scuttled.
This lack of interest was not good enough for the board. In their infinite wisdom, they decided that they would unilaterally implement the refurbishment fees even though approval was not granted by the owners. I am not a lawyer, but I don't believe that this is legal. I can't help but believe that the motive behind this move was to assist in selling the new villas that were and still under construction. It's difficult to sell new timeshares using units with dated decor and artist renderings alone........ I believe that the existing refurbishment fees and a corporate "kick in" should have been enough to support the upgrades. Our villa only rec'd normal wear and tear upgrades should have already been covered.
In addition to the refurbishment increase, it was noted on this years bill that the existing ownership had to cover the costs of those owners that are foreclosing due to the poor economy. This may be true but I believe that the economy coupled with the "Ever Increasing" maintenance fees are pushing most folks in this direction. My family is no stranger to the affects of the poor economy as my wife has been out of work for a year and a half and we're at the breaking point. Because of your actions, wittingly or not, you're setting up a vicious cycle of foreclosures to resales/rentals scenarios. It seems that Starwood just can't lose!!!
In closing, we're currently in a bind regarding the future of our vacation ownership. At this point we're not sure if we should sell, rent or opt to totally ruin our credit and foreclose? We need to know what the SVO management thinks of the situation? How are you fighting for us to keep the costs down? What are your plans for refunding our, what I believe to be, unlawful MF/refurbishment assessments? Are the corporate officers aware of the situation? How can I contact them myself to express the frustration of the ownership community?
A quick email response to the above issues would be greatly appreciated.
Regards,
Westin St. John Owner
Starwood’s response to these owners
Dear Westin St. John owner,
Thank you for contacting Association Management.
As you are already aware the Westin St. John Board of Directors proposed a refurbishment project. In order to address immediate needs to refurbish the property, two attempts were made to obtain an approving vote of the membership to pass a special assessment to fund the refurbishment. Those votes were not sufficient. Although the majority of those who cast votes were in favor of the assessment to fund a refurbishment project, there were not enough votes cast to reach the requisite level of approval, and therefore the project could not commence at that time. Had the special assessment vote been successful, the funds could have been obtained to move forward with the project at that time. Obtaining the funds through a special assessment is substantially different than obtaining the funds by increasing the budgeted reserves. A special assessment would have created an almost immediate cash flow allowing the project to begin at that time, but required a vote of the owners. Increasing the reserves contribution in the budget means the refurbishment project will not get underway as soon as it could have, but it is the Board that has the authority to adopt the budget without the requirement of an owner vote.
The Board approved to fund the project by increasing the reserves contribution in the budget over the coming years. This will affect the 2009, 2010, and 2011 budgets.
The Board of Directors and the Association reviews and analyzes all avenues to achieve the lowest possible dues increase. Their goal is to bill out fees without sacrificing the level of amenity that you as an owner have come to expect. They must also ensure the resort continues to meet certain brand standards.
Many items in the annual operating budget are not fixed expenses and are outside of the control of the Board of Directors. These items include: utilities, insurance, and supplier cost. In addition, the cost of business in the island has increased which has created a big impact in the amount billed annually.
Unfortunately your Association has been adversely impacted by the current economy. The increase in owner delinquency has created a shortfall in the Association's cash flow. The Board will continue to reinforce collection efforts to recover lost funds. In addition the Board of Directors has implemented cost savings initiatives to minimize any shortfall which includes energy audits, compact-fluorescent bulbs, and a reduction in the maximum hours hourly employees can work. The Board of Directors and the Association will continue to analyze alternate options to stabilize and secure the Association’s finances. A working capital reserve fund is being added to insure that the association doesn’t run out of funds in the future.
Being a condominium, all Owners share the responsibility for ensuring that the Association meets these obligations. As the economy improves and delinquencies eventually decline, allowances will be re-evaluated for a potential reduction. However for now, we must all share in ensuring expenses are fully paid and uncollectible accounts provisioned.
We hope this gives you a better understanding of the situation. If you have any other questions or concerns please feel free to contacting us.
Sincerely,
Aixa Garcia
Correspondence Coordinator
SVO Management Inc.
