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Maintenance fees are the cost to operate the resort. This fee is divided up amongst all resort owners. A portion of the maintenance fee is to build up reserves to pay for the non-recurring costs like furniture and appliances. A reserve is also typically set up to pay for other capital costs incurred because of physical deterioration. When a developer is still selling in a resort the fees may be subsidized and are subject to increase after the homeowner association takes over the association. Some states regulate how much is kept in reserve for future spending.
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