Treehouse Villas (THV) are three bedrooms accommodations found at Saratoga Springs Resort (SSR). They've been added later in the plan for the resort, so they weren't included in the original declaration for Saratoga Springs. This means that the Treehouses have all been declared in their own units, separated by the other units common in DVC resorts: studios, one bedrooms, two bedrooms and Grand Villas. For this reason they're an excellent example to illustrate what is the impact of a reallocation that moves points from a Vacation Home type to another.
The Treehouses were originally declared into Saratoga Springs as 905,250 points. Originally, to book all the Treehouses a total of 905,250 points were required, in accordance to the "one-to-one purchaser to accommodation ratio" found in the Florida Statute.
In 2013 DVC already did one reallocation, which increased the cost of the Treehouse Villas and decreased the cost of two bedrooms at the resort. This increased, on average, the cost of THV by 15%.
The 2020 reallocation goes further and adds more points into the THV point chart, around 15% more.
Added to declared point pool 905,250
Needed to book all nights in 2019 1,047,840 (15.8% higher)
Needed to book all nights in 2020* 1,172,340 (now 29.5% higher than declaration)
This contradicts the Florida statute which says:
"No individual timeshare unit may be counted as providing more than 365 use nights per 12-month period"
In 2020 to book the Treehouse Villas, members will need nearly 30% more than the amount of points declared for them. It's like if, in a traditional timeshare, to book a room year around, a total of 470 nights were needed. And it is not enough that those extra points have gone to decrease the cost of other units somewhere else at the resort, because the Florida Law states that the one-to-one rule applies to "each individual timeshare unit".
In the Product Offering Statement (POS) for SSR, we found a paragraph that shows even more clearly that the intent has always been to allow reallocations within the same vacation home only.
In paragraph 10.6.3 of the Declaration of Condominium for Saratoga Spring Resorts (the master document that includes all definitions and rules for SSR), it is described what happens when a unit is damaged beyond repair.
While owners can book any room at the resort, their deed states in which unit they own a share of the Unit, which then corresponds to the points they can use to book.
In case an Hurricane or a fire damages a Unit beyond repair and it is not possible to rebuild it, then owners of the particular Unit are compensated by insurance, but they loose the ownership and hence their points:
... resulting in their withdrawal from participation in the Home Resort Reservation Component and the DVC Reservation Component so that members of the club will not be attempting to make reservations for available DVC Resort Vacation Homes on a greater than "one-to-one purchaser to accommodation ratio" as that term is defined in Section 721.05(23), Florida Statutes.
No reallocation is allowed in this case, according to the POS if a Unit is destroyed and its owners are removed from the system, then automatically the rest of the resort has to be balanced in accord to the one-to-one Florida rule. Since DVC has reallocated points increasing the cost of the Treehouse Villas and decreased other units elsewhere, then this is not true anymore.
A big Thank You to DISboards user DaveNan for the calculations used in this post.
*= 2020 is a leap year, so the calculations for 2020 include one more day then 2019. This increases slightly the points allocated for 2020 but doesn't change the overall results.