MFs are hiking up @ Hyatt High Sierra

Just got the email:

"The board's goal over the next 5 years will be to keep our dues at $1250 for the next two years, and then below $1300 for the following three years."

So this year was a ~$150 increase, and next year will be another ~$100. That's quite steep, I'd say. They gonna refurbish the bathroom, lobby, kitchen, and replace carpet, sofa, windows... in the next 5 years.

It sounds like the reserves that they have included in MF's in the past haven't been adequate, so they are making up for it over the next five years. This is always a hard adjustment, but hopefully the improvements will be worth the increasse and it will help maintain the resort they way you would like it to be. Good luck.

Doesn't sound like a special assessment, only MFs will go up. I don't have a problem with this. If you're going to have a nice resort, you're going to have to pay to keep it up. Interestingly the e-mail also said the II acquisition may result in more Hyatt resorts..

A special assessment would have been preferable. This way we pay the increase forever! The bigger question is why money was not put into the reserves each year. Every HOA must have a Reserve Study periodically which guides the Board as to how much money should be put into the reserves yearly in order to fund the anticipated replacement items. Each item is addressed in the study along with the anticipated replacement costs. These studies are required by law and are usually very conservative, estimating higher amounts than will actually be needed for the replacements/repairs. We're concerned that over the 20 years the reserves were not fully funded. Also troublesome is the need to compare us to the South Shore Marriott. Just because they spend more does not mean that we have to do the same. Our goal should be to have the best resort for the lowest possible dues.

ivywag said:

The bigger question is why money was not put into the reserves each year. Every HOA must have a Reserve Study periodically which guides the Board as to how much money should be put into the reserves yearly in order to fund the anticipated replacement items. Each item is addressed in the study along with the anticipated replacement costs. These studies are required by law and are usually very conservative, estimating higher amounts than will actually be needed for the replacements/repairs.

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While the reserve studies are required by most states, there is frequently a corresponding relief from full funding of reserves if approved by majority vote of the deeded owners. So when the vote is taken, more owners want to "save" money on the yearly MF's (now whether their "saving" money in the long run is a whole other discussion.)

ivywag said:

A special assessment would have been preferable. This way we pay the increase forever!...

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I agree 100%! Do you think MFs will ever go DOWN? What does that increase equate to over say 10 years versus a single SA?

Perhaps Hyatt's bottom line is suffering and they have an automatic meal ticket in you and fellow owners.:ignore:

csxjohn said:

Perhaps Hyatt's bottom line is suffering and they have an automatic meal ticket in you and fellow owners.:ignore:

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I don't think that's accurate, given that there isn't any widespread surge of fee increases at all Hyatt properties.

ondeadlin said:

I don't think that's accurate, given that there isn't any widespread surge of fee increases at all Hyatt properties.

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You're probably right, it was just a thought.

I'm following this thread closely, as my husband and I have been looking for a late May/June week. It's a little scary, could we some day be looking at 2K mfs??

ivywag said:

A special assessment would have been preferable. This way we pay the increase forever! The bigger question is why money was not put into the reserves each year. Every HOA must have a Reserve Study periodically which guides the Board as to how much money should be put into the reserves yearly in order to fund the anticipated replacement items. Each item is addressed in the study along with the anticipated replacement costs. These studies are required by law and are usually very conservative, estimating higher amounts than will actually be needed for the replacements/repairs. We're concerned that over the 20 years the reserves were not fully funded. Also troublesome is the need to compare us to the South Shore Marriott. Just because they spend more does not mean that we have to do the same. Our goal should be to have the best resort for the lowest possible dues.

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But if the reason for the hike now is that you're making up for a shortfall caused by underfunded Reserves over a period of years, wouldn't you want to continue including a Reserves portion in your annual MF even after this round of refurb? So that the necessary funding is in place for future scheduled refurbs?

MFs are still reasonable for this resort, relatively speaking. The e-mail specifically states the projected increases for the next several years and they are still in the reasonable range. TSs, like homes, have to be maintained. There are plenty of TSs you can buy that have lower MFs, if that's a factor... Escalating MFs should be assumed, and should be taken into consideration when making purchase decisions..

My concern is they now increase the MFs at will, not based on what is needed. This year they compare to the Marriott at South Tahoe. Next year, they may wanna use Hyatt Highland inn as an example..., and then Hyatt Maui?

In the past several years, the HOA did a great job on keeping the MFs low, meanwhile maintaining the resort in good shape, but suddenly it becomes mission impossible? Like someone said, $1300 is not extraordinary, but I certainly hope they use all the money wisely, not step into the current MF hiking competition.

I talked with someone there today, and he indicated that the fees, including the II fee, would be around $1250 for next year. Given the resort quality, this seems very reasonable. In the e-mail we received, they have projected what their plans are, regarding future MFs. Still very reasonable, IMO. Regarding the future, no way to predict what could happen..

magicjourney said:

My concern is they now increase the MFs at will, not based on what is needed. This year they compare to the Marriott at South Tahoe. Next year, they may wanna use Hyatt Highland inn as an example..., and then Hyatt Maui?

In the past several years, the HOA did a great job on keeping the MFs low, meanwhile maintaining the resort in good shape, but suddenly it becomes mission impossible? Like someone said, $1300 is not extraordinary, but I certainly hope they use all the money wisely, not step into the current MF hiking competition.

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When I saw the remodel plans for the bathroom last summer when we were there, I was sad to learn that the bathtub would be gone . My kids like the bathtub. I haven't been following any changes since then, but knew that the MFs would be going up.

mcjourney said:

So this year was a ~$150 increase, and next year will be another ~$100. That's quite steep, I'd say. They gonna refurbish the bathroom, lobby, kitchen, and replace carpet, sofa, windows... in the next 5 years.

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There is an election coming up soon. My guess is most, if not all of, the Board members who voted for this huge increase are running for re-election. We should remember that when casting our votes.

lizap said:

Doesn't sound like a special assessment, only MFs will go up. I don't have a problem with this. If you're going to have a nice resort, you're going to have to pay to keep it up.

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ivywag said:

Also troublesome is the need to compare us to the South Shore Marriott. Just because they spend more does not mean that we have to do the same. Our goal should be to have the best resort for the lowest possible dues.

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csxjohn said:

Perhaps Hyatt's bottom line is suffering and they have an automatic meal ticket in you and fellow owners.:ignore:

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The Ridge Tahoe is a first class resort on par with Marriott and Hyatt resorts at Lake Tahoe. The Ridge Tahoe has racquetball courts, a covered tennis court for year-round use, a movie theatre and a funicular to maintain in addition to the usual resort amenities. The maintenance fees for a 2 bedroom/2 bathroom are about $1000. What extra amenities do the Marriott or Hyatt offer to justify the higher maintenance fees?

The Marriott and Hyatt have arguably better locations, but that should not affect maintenance fees. The Ridge Tahoe management does not have to consider the needs of shareholders as Marriott and Hyatt have to consider. Perhaps that is the difference.

If the increasing fees at the Hyatt are a concern, maybe it is time to sell Hyatt and buy the Ridge Tahoe. Just be sure to purchase a Ridge Tahoe Tower, Plaza or Naegle unit. With some patience, these can be found for $1 plus closing costs on EBay.

There was a Naegle unit week 1-52 recently advertised on TUG for only the closing costs, but someone has already snagged it.