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8/12/2021 32 Comments

DOES THE NARRATIVE NEED TO CHANGE?



The Board has been operating on the principle that they only tell the homeowners what is needed?  This years set of "needs" are:  more money to fix pools, more money for short term and long term rental issues , more money to put transponders on vehicles and more money for the golf operations.

The narrative of the Board and the HOA has to change.  Homeowners want to feel confident that the current budget increases are rooted in facts and based on the following business principals:
   
  1. Collecting and analyzing data from current operations (collecting and tracking data).

  2. Reporting on measurable benefits that were produced with current expenditures (tracking degree of success/failures, efficiencies gained, etc.)

  3. Establishing goals( increase efficiency,  reduce costs,  additional benefits)
    ​​
  4. Transparency when the homeowners request confirmation that principals 1-3  were considered (meeting stakeholders needs).

The blog would like to hear from the homeowners on their interactions with the HOA and Board and if they believe that the narrative needs to change too.
32 Comments
Lyle Smith
8/12/2021 08:47:19 pm

The narrative and attitude of the board needs to change. The attitude of the HOA board stating they don’t need to give reason or explanation for increases in HOA is unacceptable. This is not a board dictatorship!!!
If my attitude was I don’t need to pay the HOA. The HOA/board would want to know why I’m not paying and there would be recourse. There for the board should be transparent as to any increase and reason for increases since it is money out of my pocket and the pockets of everyone paying into the HOA.

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Pamela crawshaw
8/13/2021 01:22:45 am

I’m a new owner and totally agree that we should given a complete and total details to see where and why an increase of the monthly fees. Plus more detailed information is needed for this increase for owners who rent and why there is a need for an additional compliance officer is needed which is a big expense.

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Elaine & Marc Rubenstein
8/12/2021 08:52:01 pm

Hi All,
Hope everyone is staying safe & healthy.
Since the HOA board has voted on hiring a new compliance officer and purchasing a new vehicle with the $500.00 fee per homeowner who rents there private condo and or villa - the question is: where is all the supporting documentation for back up ? IE: Incident reports which confirm this increased fee, new compliance officer & vehicle are even needed. Is this based on a pandemic rental season or how many years has this been an issue ? Where is any back up ? An unexpected pandemic changed the course of 1 rental season and like many business to stay a float - people had to pivot for possible rental income as borders were closed etc... from preventing normal seasonal renters.
This 400% increase should not be based on one difficult year.
The HOA board should table this until they are able to collect data from this upcoming season of regular renters.
Thank you !

Reply
Mary Maloney
8/13/2021 07:47:20 am

Completely agree! There are no incidents, there is no data. In asking simple questions of our CEO, Jerry Storage, for access to the reports/data/statistics that the STVR committee or the HOA BOD used in making their determinations, none can be provided......then this is a made up "problem" and borderline slander on the rental owners. Every newsletter from Jerry's office starts with "numerous" complaints about renters, but yet, there is no documentation for this.

The City Compliance Department has confirmed that Desert Princess is not an issue when it comes to STVRs, which we all have to be in compliance with the city first and foremost, so where is the actual data that the HOA has a problem? In asking questions of our HOA I am being told there has been 1, one, uno, STVR owner that had be fined and disciplined for not being in compliance, so we need to hire another officer, buy another vehicle?

Something doesn't smell right.

Reply
Deb Huy
8/16/2021 08:56:27 am

Agree with those comments above. I emailed the board and Jerry Storage, CEO, asking for documentation/data regarding rental units that would justify the $100 to $500 increase in the rental unit fee. Mr. Storage's response was "...it would entail considerable staff time to prepare what you have asked for since we do have existing reports available that we could give you." So....the HOA has no data collected, but says there is a need for another officer and a vehicle?? Clearly, this is not how an HOA board should operate!

Jeanette Morocco
8/12/2021 09:15:57 pm

I am totally disgusted with this board and their way of operating. I do not think they have any right what so ever to handle things the way they have been or plan to. I know things have gone up...but really a $ 100 to $ 500 dollar increase - what for ??? what extra benefit does this bring to me for $ 400 extra ??? Costs on the development have continued to rise - I have never complained before - BUT THIS ENTIRE PROCESS THIS PAST SESSION IS NOT "OK" IN MY BOOK
THINGS NEED TO CHANGE IMMED AND THESE FEES - BEFORE RAISING ANYTHING - I WANT TO KNOW THE NITTY GRITTY BEHIND THESE INCREASES. I WANT ALL OF THESE INCREASE - 'ON HOLD' UNTIL CLARIFICATION AND EXPLANATIONS FOR THESE INCREASES ARE GIVEN TO HOMEOWNERS

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Judith Stephan
8/13/2021 07:54:47 am

Homeowners, you have recourse. Send the board a request for resolution for issues you dispute and demand they provide back-up for fees and other costs.

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Deb Huy
8/16/2021 08:52:10 am

I did email Jerry Storage, CEO, and the entire HOA board requesting documentation/data related to problems caused by rental units over the last 12 months that would justify the new $500 fee. His response was "...it would entail considerable staff time to prepare what you have asked for since we do not have existing reports available that we could give you." My response to him was if you have no data showing there are problems, how can you justify a fee increase from $100 to $500?? I received no response.

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Valorie Farber
8/16/2021 12:17:18 pm

Thank you for sharing.
Exactly. Everyone who has posed this similar question, has received similar response. While I understand that the majority in Desert Princess do not rent their homes, this should still matter to those who don't. I am very concerned that our board and management company operates this way. Decisions are not being made based on actual real data. And false narratives are being broadcast to the community. This is concerning whether you rent your home or not. The integrity of the majority of this board is severely questionable.

Timothy Gaffney
8/13/2021 08:17:33 am

The financial course Desert Princess is on is not sustainable.
Period.

That is why they don't want to tell you anything.
If that works why would they change?

You get the government you deserve.
Half or more of owners don't vote.

The only people that matter to this Board are the people who vote to keep them in office.

You get the government you deserve.

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Maggie Hood
8/13/2021 08:31:19 am

The board President is just rude! When he read the letter from one person, it was long; he read it in a manner that disparaged the comments. He cut me and others off while we were speaking. This board is primary run by out of towners who play golf. They haven’t been here now for over a year. Jerry Storage stayed “we can’t control expenses”. That is not true. They just blatantly spent $15,000 on an architect to design a new clubhouse patio. You don’t do something like that after a bad year. You WAIT. you don’t hire a new “compliance officer” to oversee 233 rentals. That’s a fraction of the units here. What are the issues? How can the be do terrible when no one even came last year? And why should owners who have full time tenants pay when the so called problems are with vacation tenants. I think a large group of us need to organize and demand these answers.

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Takis Vartelas
8/13/2021 08:46:26 am

My wife and I rent our house 4-5 months out of a year to ONLY professional renters that stay 1-2 months at a time. Just an FYI we have NEVER encountered any nuisance problem with our house and the security has NEVER appeared in our front door to bring people to order...!
Therefore the Board's $500.00 bombshell to vacation rentals was a very "personal" thing to us and I sent an email to the board with our disagreement on the subject.
I told the board that their decision was not fair and I asked why the people that rent their homes on a yearly (or more) contracts are not "punished" with a fee? I also asked the board to send me information from the security outlining the "problems" created by the vacation rental homes...!!!
The president of the HOA answered back to me that the Board could not (!!!???) comply with my request sighting privacy reasons and that they did not have the people to put such report together....!!!! It is pretty sad that someone can wake up in the morning and make a decision to charge people but they cannot justify why.
The same day I got together with a minority shareholder in one of my investment companies who is also an attorney and a good family friend and I found out that in order for the Board to make such important decision they needed to jump many hoops, as well ad, to be able to provide us with the information we asked as per California law. I was also told that if the Board wants to protect people's privacy (which they should do), they could only give us the report we asked without any names and addresses but only with the number of incidents and how many of these incidents would be from Vacation Rental homes in the past one or two years. In addition I was told that IF THEY CANNOT SUPPLY US WITH IMPORTANT INFORMATION THAT (APPARENTLY) WAS USED FOR THEM TO MAKE THEIR $500.00 FEE DECISION WE SHOULD NOT PAY EVEN THE ORIGINAL $100.00 THEY CAME UP WITH.
My take is that SOMEONE came up with this sick idea charging Vacation Rental owners WITHOUT having ANY records but possibly a person's view that "Vacation Rentals are bad for the community so let's charge them",
In all honesty I would love to know who these people are and bring up their downfalls in the community, including a couple of the Board members that do not clean after their dogs and do not follow the HOA's rules with their yards or their friends' yards and behavior.
What I do not understand that all these people are volunteers but when they get in "power" instead of working for the community and its members, they work against the community by punishing people that all they have done is to become an AMERICAN investor and homeowner....!!!!!
The president of HOA sent me back a nice email indicating that he will bring this up to the next Board meeting this month. I just hope that they will let us in the meeting and also - this time - make the right decision. If not, let's all homeowners get together to discuss what it will be next.....
Should anyone would like to talk in person please email me or call me at 858-442-1471

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David Guerra
8/13/2021 10:03:24 am

We are all homeowners that demand transparency and clarification...not secrecy. Remember that we are all homeowners and have a stake in our community. We need to hear facts and not fiction so we can make sound decisions. We must protect our beautiful investment which is the Desert Princess Country Club.
I understand that labor costs, equipment costs etc. are being passed onto us homeowners via hoa dues increase. However, we need to think outside the box. We have plenty of people that would volunteer their time to work the front office, to start a neighborhood watch group, to go through the budget one budget item at a time in an effort to keep hoa dues from skyrocketing. Short term vacation rental owners aka STVR's do not need to be punished by increased costs towards them. We are already paying and working with the city of Cathedral City. We bring visitors and potential homeowners to the Desert Princess. We are our promoting/marketing and bringing business to our Desert Princess community. However, we need to promote desert living in our community for prospective homeowners. Not scare them off. Come together people and invite new ideas, fresh perspectives and possibilities. Boardmembers, I thank you all for your service to our community and your volunteerism in trying to make our community great. However, I urge all of you to listen to what the community is telling you and consider thinking outside of the box. We are all in this together so lets start working together.

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Pam Meadows
8/13/2021 10:09:27 am

I totally agree that this board does not have ALL HOMEOWNERS best interest at heart (except 1 who does). They only have their own interests and secrecy. I feel a full accounting of why an increase is needed is not out of line. Things go up, granted, but this much...NO WAY! I do not rent my home, but I defend others right to do so. Rules need to be followed. For this board to say they don't have to account to us, the homeowners paying these fees, is ludacris!

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Joanne Brown
8/13/2021 12:34:13 pm

I think after a Covid year it’s time to stop spending for a year. Also how can we be so poor when we just added all the Hoa fees to all the new villas in Arroyos to our monthly income. I know Cathedral Canyon has not increased there fees for several years.

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TERRY Albright
8/13/2021 02:13:55 pm

Here is what has changed in the 8 years that my wife and I have owned at DP. In the past DP had lots of personnel issues largely because DP didn't have a good HR manager. DP laid off most of the loyal and hardworking workers and hired a for profit management firm whose go to solution to every issue is to charge the homeowners. Our security is provided by a for profit firm as well as our grounds by O'connell. What we needed was a well educated HR manager and a experienced property manager both of whom posessed good "people skills and who worked for us. Not rocket science. We still need to wrest control of the golf course away from the golfers and make it an actual "PUBLIC" course. If the golf operations need to be run by "others" so be it. Make no mistake. DP is simply a profit center for the current management trust and contractors. We will continue to have our pockets picked as long we use for profit companies to run our affairs.

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Valorie Farber
8/13/2021 06:05:03 pm

So awesome to see people here sharing thoughts and ideas. Thank you to whomever hosts this forum for us to communicate and share. Thank you to everyone who is requesting supporting documentation for the decisions that have been made. We too, have been met with "we don't have to give you that information" to "we don't have that information to give you" to just no answers or response at all.
The HOA, the BOD and the Management Trust owe it to us all to be transparent. They have a responsibility to us to make decisions in the best interest of the community at large and to make sound decisions based on facts. They have a responsibility to be responsible in how they spend our money and to obtain competitive bids for jobs and projects. AND, they have a responsibility to REPRESENT the homeowners and to HEAR us, and to care about what we have to say. Let's keep up our communicating and sharing. Please reach out to neighbors and others you know in DP and encourage any not already participating to get involved and to become aware of all that is going on. Knowledge is power and we need active community members to make a change.
Please, please, please mark your calendars to attend the next HOA board meeting in person or on Zoom. Please tell your friends and neighbors in DP and rally as many as possible to come to every single one of the meetings as possible. Let's make our presence known.

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Paula Paris
8/13/2021 07:18:50 pm

I whole heartedly agree with all of the statements here. I have written to all the Board members before and only received one reply from one of the men on the Board trying to mansplain that I obviously never lived in a gated community and am not familiar with how HOAs work here in the desert...very rude indeed! I told him I know perfectly well how they work as I lived in Ironwood CC for 15 years before moving to Desert Princess. There are BIG differences between these two HOAs. Ironwood included the following in the dues: All had trash pickup at not extra cost; all of the streets were resurfaced every 2-3 years; all of the roofs were repaired and/or replaced every 10 years or as needed; villas were painted every several years to maintain their appearance; gardeners/landscaping always had a schedule that was actually kept; all mail was delivered to each individual address since we all had our own mailboxes; the streets were swept with the driven street sweepers every week after garbage and recycling pickup; Security was at your home within 5 minutes if you had any reason to call them; plus more things that were provided that were included in the dues. Frankly Desert Princess looks like a dump compared to other Clubs around the desert where a number of my friends live. So what ARE we getting for our money is the question that needs to be answered by the Board and not with flippant or rude retorts, but rather with knowledgeable information that PROVES we need the ridiculous increases over just the last 3 years that I've been here. It's going to be harder to sell our places for those of us who aren't happy with the Board and voted for other who didn't win a seat.

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Elaine & Marc Rubenstein
8/13/2021 08:42:06 pm

Hi All,
Thank you again for creating this blog and to all who are bringing up such valuable points and information. For all the homeowners who rent their condo or villa as well anyone who supports being treated fairly and with respect, the current sitting HOA Board needs to be held accountable for these proposed actions.
I also wanted to bring the fact that DP received a PPP Loan for $300K from the Federal Government which is specifically to help businesses keep their workforce employees during the Covid-19 crisis. The money is to be used for Paycheck Protection Plan for DP workforce and operating expenses not to be saved for future projects as stated by the HOA board in the minutes.
The PPP Loan may be eligible for full loan forgiveness only if during the 8 -24 week covered period following disbursement:
Forgiveness Qualifications:
1. Employees & compensation levels are maintained.
2. The loan proceeds are spent on payroll costs & other eligible expenses.
3. At least 60% of the proceeds are spent on payroll costs.
If the above is not met - the the PPP loan must be paid back in full.
Thoughts ?

Reply
Cathie & Kurt Wachter
8/14/2021 02:02:51 pm

I actually wrote to the board about this exact issue related to the PPP funds. Here is the response i received from the president, Peter Webb:
Thank you Cathie, you are of course quite correct. We applied for and received forgiveness for the funds which were part of the Phase 1 program. We used our own $$ to keep the place afloat while waiting a year to find out if we were granted forgiveness. In trying to simplify the messaging I have provided an incorrect explanation. By copy of this email I am asking our Controller Davd Mirre to put together a brief document explaining the story on the PPP funds - what was applied for, what was the basis of the application, what was approved, forgiveness etc to provide an accurate explanation of the whole story which will pass muster with the authorities and also answer any questions homeowners may have. We will then publish this on Condo Communities so we have an official record.

Thank you for catching this,

Peter Webb
President

Here was his additional response:
Should have mentioned it was on the balance sheet as a liability until we received official notice of forgiveness. I should also clarify it was Management Trust who applied for and was granted the loan. Our portion was a relatively small part of a much bigger total they bundled up. This is because all HOA employees are employed by Management Trust, the HOA has no employees.

Reply
Valorie A Farber
8/15/2021 11:54:22 am

Cathie and Kurt:
Thank you for sharing this information. I too, as someone else mentioned here, thought it strange that they were saying that the PPP funds were "saved" or set aside or something to that effect. Because, 60% of PPP Round 1 funding was required to be spent on direct payroll related expenses. The remaining 40% (or less), was eligible for forgiveness for approved business related expenses (such as rent, utilities, etc.).
One thing I still find odd to this PPP story however, is, I am not sure that this should have never been reflected on the Desert Princess HOA balance sheet as a liability in the first place. It was not a liability of DP HOA. It was a liability of The Management Trust as it was a loan to them. The Management Trust is it's own company. It is not owned by the DP HOA (or at least, not to the best of my knowledge, lol). So quite honestly, I am not sure that the SBA PPP loan that Management Trust obtained, should have ever even come into play in regard to DP HOA at all. A more appropriate way of looking at the PPP loan that Management Trust obtained, would have been that they got the loan and passed the "savings" of them having received those funds to pay their employees, therefor reducing the cost billed by them to DP HOA for their management fees. That would have needed to have been its own separate agreement between Management Trust and DP HOA.
Agan, said "savings" Management Trust got, would have been an agreement that Mgt Trust made upon receipt of the SBA PPP Funds, with DP HOA (as a separate legal agreement); that they would "pass the savings" of the PPP loan onto the DP HOA as a sort of "relief" provided that Management Trust was able to receive final forgiveness on THEIR loan. Again, that SBA PPP loan that Management Trust received, was not a loan granted to DP HOA, as the HOA has NO employees. I don't understand how the PPP loan that Management Trust received, ended up ever being placed as a liability on the DP HOA's balance sheet in the first place. There may be some legal justification for this. I am not sure... that is something that needs to be inquired about.

Cathie & Kurt Wachter
8/15/2021 12:19:19 pm

In reading the comments above it appears the main issues are obviously the $45 per month HOA increase, 400% increase for rental units and lack of transparency or inclusion from the HOA Board. Does anyone know the makeup of our board? Doing simple math it appears 56% of the ownership are Villas, 44% Condos. Of those numbers 21% are renting out their units. I am unsure of the percentage of owners/non-owners that have golf memberships. Do we know the number of full-time versus part-time residents? Does our current board mirror or somewhat match what the ownership percentages are? I think there are different factions that should be represented on our board to insure everyone's views are heard.

I also think just coming out of an unprecedented year from Covid where many people were negatively impacted via shutdowns, job loss, inability to visit their homes in DP, we should consider postponing any major expenses until we know where we stand. It is possible we may see another shutdown which will surely create hardships for many. Just a couple of my thoughts....

Reply
Takis Vartelas
8/15/2021 03:51:12 pm

I have been reading everyone's comments and everyone is right. Just an FYI, if the Board continues to act with an authoritarian attitude, and don't answer those comments and questions concerning all these items I think that I am going to call SBA and find out what is going on with the PPP funds given to The Management Trust or to DP or to HOA or to anyone else. And by the way, did the Management Trust applied for both PPPs or just one of them. You know that the Government hates when people and/or business entities are using Federal money in a no-appropriate way....!!!!
On the other hand I would like to know why we needed The Management Trust to manage (!!!???) DP and who was the Board member that recommended them?
Last Friday I also talked to the City and the Police Department and I was told that they have NOT been serious problems in the DP community. I also talked to one of the Security people and (he/she) said off the record that there are not many problems with regular or rental units....
IT IS TIME FOR US TO ACT PEOPLE...I do appreciate the Board's voluntarism but this should NOT be used as an excuse of their action....
Time for all of us to act

Reply
Valorie Farber
8/16/2021 09:31:58 am

A friendly reminder about the owner chat this Saturday at 1pm on Zoom. Please join and encourage others to participate. The more participation, the better.
Cheers

Mary Simmons-Maloney
8/16/2021 08:15:08 am

The CEO Jerry Storage sent this:

The Board of Directors will be discussing the issue of rentals and related information at its August 27 board meeting. Until that time, and until so directed by the Board of Directors, management will not be preparing or releasing any reports relative to historical rental statistics.

Shouldn't we be able to see the data or "historical rental statistics" at anytime upon asking? How did this board make a determination that we need another compliance officer, another patrol person and another vehicle because of the "problem renters" without data? Is it because there actually is ZERO data? But management had no trouble publishing a list of all rentals on the web site.

Again, this BOD needs to provide proof to the homeowners.

Reply
Takis Vartelas
8/16/2021 11:54:12 am

I thought providing names and addresses is against the Board's privacy act...How come they published all the rental units?
Also, originally I was told that the HOA does not have enough people to look into our requests. And NOW the president indicates that they will not be giving out any information until after the meeting...!!!!
My Question: Is there a data or is NOT a data. Why the heck they are playing with us....?

Reply
Valorie Farber
8/16/2021 11:55:23 am

I find it amusing that the latest rental notice in Condo Communities posted today states:
"Particularly problematic in the Coachella Valley, including Cathedral City and here at Desert Princess Palm Springs are short-term vacation rentals (STVR or STR)."

Several homeowners have now since contacted the City of Cathedral City STVR department as well as the City Police. BOTH have shared with ALL of us who have contacted them, that Desert Princess has a negligible amount of issues with rentals and nothing notable. They have both said, that Desert Princess is not a place where they see any notable amount of issues.

This narrative that the BOD is spreading, is false.

Reply
D C
8/16/2021 09:41:37 pm

In an News/Notice published today August 16, 2021 on the Desert Princess Portal Terri Swartz states:

"Rentals at Desert Princess Palm Springs have existed for some time. While that has not changed
over time, what has is the ease with which homeowners may rent their condos or villas to
strangers. Gone are the days when renters were typically friends, family or co-workers
personally known by homeowners. Thanks to advances in technology and the advent of new
services such as VRBO and Air B&B, renting private homes for vacations and extended stays
has become easy for all (homeowner and renter). To provide a context, approximately 25% of
the homes at Desert Princess are rented out at least some of the time."

This statement implies that the Desert Princess HOA only has a problem with owners/landlords which are renting their property to "strangers". THIS IS VERY DISTURBING particularly when this point of view comes from the "Chair, HOA Board Governance Committee"

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Amy Moore link
8/16/2021 10:09:12 pm

I wonder why the board feels a need to punish homeowners who are simply exercising their right to rent their property. Why are they singling out short term rentals & not including long term rentals as well into the huge fines? This is ridiculous that the HOA would pile on fines & fees on top of the city & county unreasonable & cost prohibitive fees on STVRs. During the pandemic homeowners were prohibited from renting & when they allowed rentals to restart they required incredibly stupid & unreasonable cleaning requirements that literally eliminated 95% of the STVRs in Cathedral City. So, I suppose the city is happy now since they accomplished their goal of eliminating STVRs in Cathedral City. Guess they forgot that STVRs bring in other revenue to the city with restaurants & other venues. What a bunch of Nazis & marxists!

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David Guerra
8/16/2021 11:13:21 pm

I'm starting to get the feeling that STVR owners are being unfairly targeted.

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Kevin Crockett
8/23/2021 02:22:55 pm

For those of you who have not had issues with short-term, or long-term renters, congratulations. I have had problems, and these problems are the result of owners not properly vetting those they rent to. Their costs for owning are offset at the expense of those of us wanting to live in a quiet, and orderly beautiful community. I would suggest the BOD raise the fines to irresponsible owners who allow responsible owners to suffer thru their greed. Make it impossible for these owners to comfortably afford to own.

I don't like to see costs hiked any more than anyone else. That said, a place like DPCC could decline into a complex of cheap motel units very quickly, if not held to a very high standard for security and beauty. Perhaps those of you grumbling about costs should move to Thermal or DHS...... Great prices.

To those complaing about the attitude of the BOD, I ask this..... have you run for office? Do you have any idea what these volunteers endure from you malcontents?!!! I have seen some attitude from the Board myself, but understand their response from a bunch of complainers who do nothing to make our community a better place.

I suggest those malcontents out there to take a drive around. This community is not new. I have had my issues with O`Connell, and the condition of the parking area asphalt, but overall, the places are looking quite nice. For those of you who can't afford to own a second home without renting your place to LA partiers..... pay up.

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Paul
8/29/2021 11:09:31 pm

Kevin Crockett:
Your tone taken in regard to what people pay for their property is quite odd considering you only paid approx. $155,000 for your condo. Even Thermal and DHS now are WAY more than what you are into your place for.
The BOD AND the City HAVE raised the fines to owners of rental property.
And you want to talk about "malcontents"- Peter Webb is plain disrespectful. No ifs, ands or buts about it. All here would agree that we appreciate those that would choose to volunteer. But some on that board have taken things too far. Their "service" no longer falls in the category of "volunteerism" nor true service for that matter.
You speak of costs of owning: If the majority of that board isn't reeled in soon all of our costs of owning including yours are going to be vomit-worthy.

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