ARDA and ARDA-ROC Seek Clarification for Legacy Resort Owners
Since the industry’s earliest days, Florida has been a leader in the development of timeshare as a vacation option, acting as a bellwether for several advancements to the industry’s product, structure and regulation. This has not only created an example for many states to follow, but also puts Florida at the forefront when dealing with lifecycle issues for older resorts. One issue includes the expiration dates for several timeshare plans (governing documents of a timeshare resort) that are 25 years or older. In most cases, little or no guidance exists for the operation or partition of plans after they expire.
Bill HB 829/SB 818 aims to provide sustainable tools for older, or “legacy”, resorts and its owners when dealing with the termination of timeshare plans.
Nearly 36 legacy resorts are subject to potential termination, and may not be prepared for such an event. Typically, after the timeshare plan expires a condo plan remains in place, leaving some 52 weekly owners of each unit without a plan for its use.Without the knowledge of what comes next, owners and management organizations, may not only lose out on their interest, but also might miss opportunities to sustain and revitalize older resorts for future enjoyment.
Some legacy resorts that could face termination may still be enjoyed by their owners and local community, providing its owners continuous memorable experiences, as well as contributing generous tax revenues to the surrounding economy.
Position/Call to Action
ARDA and ARDA-ROC seek to empower Homeowners’ Associations (HOA), acting as a representative of owners, to effectively manage terminated resorts, provide reasonable processes for older resorts that are still viable to continue to thrive, and clarify the property rights of timeshare owners.
Bill SB 818 aims to give owners the opportunity to extend the timeshare plans on legacy resorts through small changes in voting requirements.
For the timeshare plans that will terminate, this legislation proposes to allow the HOA to be a representative of the owners in order to handle post-termination activities.
Lastly, the bill seeks to clarify language regarding each owner’s right to dispose of their timeshare as they choose.
Bill SB 818 was filed in the Senate on February 9, 2017.
On February 23, 2017 the bill was referred to the Agriculture and Property Rights Subcommittee.