What is a developer's alternative if they do not want to pay assessments for unsold timeshares?

A developer's alternative of entering a subsidy agreement with the association serves as a way to address the financial obligations associated with unsold timeshares. This type of agreement allows the developer to contribute funds to the homeowners' association, which can help cover the operational costs and assessments that would otherwise need to be paid for the unsold inventory. By providing this financial support, the developer helps ensure that the existing owners are not burdened by higher fees due to the lack of sales, creating a more stable financial environment for the timeshare community.

This approach is advantageous for developers as it can help maintain goodwill within the association and foster better relationships with current owners. It also allows the developer to focus on selling remaining units rather than diverting cash flow to meet assessments for unsold timeshares. In this way, subsidy agreements can be a strategic tool for developers when managing their financial responsibilities.