is desert princess on the "do not loan" List?

1/3/2022 76 Comments

is desert princess on the "do not loan" List?

Last week a homeowner wrote in the Blog that they cannot refinance their property.

After checking with existing loan companies, it appears that Fannie Mae and Freddy Mac will be putting the Desert Princess County Club on a "Do Not Loan" list.

The Blog would like to know:

Have any other homeowners been affected?
Are there property sales that are falling through because buyers cannot get financing?
What steps are the Board and HOA taking to keep Desert Princess Country Club off the "Do Not Loan" list?
Will merging the Country Club and HOA into one entity impact the ability of finance loans at Desert Princess Country Club?

The Blog welcomes your feedback and comments.

76 Comments

John anderson

1/3/2022 09:39:24 pm

I am curious. Are these real facts or just merely a bunch of miss leading information like the recall vote?

niki king

1/4/2022 08:29:25 am

These ARE real facts! We are on the "do not lend list" With ALL lenders.. I have NO idea why. HOA refuses to respond as all I get is "I don't know anything" when I call them. I have three clients who cannot refi and also one who cannot get a loan to buy here. This is horrible. It usually means lawsuits from my 25 experience being a Real Estate and Mortgage Broker. I am very saddened by this. It is affecting MY personal loan and ability to close two transactions here as well as two of my buyers.

Mary Maloney

1/4/2022 11:40:17 am

I'm so sorry Niki. As a fellow Realtor, I feel your concern and as a homeowner I am extremely concerned about our property values here and my ability to serve my clients that want to purchase here in our beautiful community.

niki renee king link

1/4/2022 08:47:41 am

I too stayed out of all the drama as you never know what the truth really is in these types of things and I am NOT a person up for drama... but this is real. I live here, I am a Realtor and Lender and what I wrote is the truth. I cannot refinance, my buyers cannot buy with a regular loan. Cash or Hard money loan only so far. I do NOT want to be in this drama either.

Mary Maloney

1/4/2022 10:22:02 am

Actually John, this issue is part of the reason we voted YES on the recall. As a realtor I can tell you this is a real issue.

Jennifer Altenburg

1/4/2022 04:00:19 pm

Unfortunately this is accurate information. I too am a 16 year homeowner of two villas at the Desert Princess and also I work for loanDepot in South Orange County. Fannie/Freddie did update their condo policies late in 2021 in response to the condo disaster in Florida. They re-evaluated all criteria for lending and have released a list of condo complexes that are ineligible for refinancing. Ours whether a condo or villa falls under that ineligibility. There is no workaround to the guideline for a conventional loan here. We fall under the condotel category. Other HOA's are ineligible because the buildings are old or in a flood zone, we are affected due to the condotel category.

Mary Maloney

1/5/2022 08:39:36 am

Jennifer, would love to connect with you. My cell number is 760-855-1424 and my email is [email protected]

Scott Schneider

1/3/2022 09:49:21 pm

I just refinanced my home for the 2nd time in 3 years. I did not have a problem with the refinance. I think you need to find out why we were put on the No Finance List before jumping to conclusions. I believe that Fannie Mae purchased my load the last time I refinanced.

Maggie Hood

1/3/2022 10:55:23 pm

I would really love to know who you used for the re-fi. would you please share that info because YES I too was just denied by Wells Fargo AND THEY CURRENTLY HOLD THE LOAN! I was NOT denied for the loan - the PROPERTY (condo) was denied! I would like to know why and I can't find out.

Glenda J. WILSON

1/4/2022 08:59:07 am

LOAN DEPOT...downtown Palm Springs...lends in here a LOT. The key is to make sure your land lease expires in 2069 NOT 2044. Jon Eric Lehman is the office manager.

Mary Maloney

1/4/2022 11:43:10 am

This has NOTHING to do with the land lease, it has to do with our HOA budgets and the co-mingling of expenses with the country club. It has been a known issue for years by our board and Management Trust and they haven't taken the proper steps to address it. A small handful of lenders had found a work around with a "limited HOA cert" but Fannie Mae and Freddie Mac have caught on and put a stop to it. There may be some limited help for villa owners but us condo owners are out of luck I am afraid.

Joan

1/4/2022 04:35:30 pm

MAGGIE: Sadly, you cannot refinance at this time. Scott clearly completed his refinance prior to this regulation being finalized by Freddie and Fannie.

Mary Maloney

1/4/2022 10:25:22 am

The big 2, Fannie and Freddie have deadlines of Dec 31, 2021 and Feb 28, 2022 respectively so if you refinanced before that, good for you. This has been a known issue and lenders have been warning it was coming.

Joan

1/4/2022 04:34:13 pm

SCOTT: You refinanced BEFORE all this came down the pike. No one is jumping to conclusions regarding the topic of this thread. Sadly, this is real. As stated by others, Desert Princess is now on a DO NOT LEND list. If not corrected, our values will plummet. Peter Webb knows about this and so does Jerry Storage. They have known for MANY MANY MONTHS and have done NOTHING. I personally know that to be true. It's really too bad more did not take the opportunity to recall Peter Webb when they had it. Really such a shame.

Ivan

1/4/2022 05:45:07 pm

If you were approved for your re-finance before the first of the year, then this would not have been in effect, consequently it would not have affected you Scott.

Abubaker Saeed

1/3/2022 09:56:41 pm

I tried with few landers and had a same issues and it’s really frustrating that I can’t take advantage of low rates interest because of Desert Princes is on no loan list. I think hoa should do something to get DP off from no loan list. Specially since they raise our dues recently as well. Sometimes make me think what hoa is really doing for us??

Mary Maloney

1/4/2022 11:44:32 am

Very sorry to hear this. This has been a known issue for several years and unfortunately it was not addressed by the HOA and Management Trust before Fannie Mae and Freddie Mac said no more.

Joan

1/4/2022 04:39:34 pm

I will not be giving my votes to Russ Holowachuk nor Terri Swartz.
We need NEW LEADERSHIP at Desert Princess.
We are now on the way to return as the "Desperate Princess." The recall proponents warned of this...
NEW LEADERSHIP IS NEEDED HERE. PERIOD.

Mary Maloney

1/5/2022 08:45:18 am

Yes Joan, NEW leadership is needed that understands business. Our community is complicated. The country club amenities should be profitable, not losing an estimated $1.5m a year. They should stand on their own and our HOA dues should ONLY BE SUPPORTING those things that support our homes. Frankly, the country club should be offsetting our dues and OUR DUES SHOULD GO DOWN!!!!
We need true business people running the golf operations and the restaurant to make them profitable and we need guests and STVR guests spending money here at our resort. We need to work WITH the hotel to make the resort a thriving place for guests to come.
If homeowners don't want that, then there are several communities in the valley that offer PRIVATE CLUB amenities at over $1,000 a month HOA dues. There are tons of homes for sale there........Oh but wait......you won't be able to sell your home here because no one can get a loan.
And people said the recall was silly.

Sven Paardekooper

1/3/2022 10:31:28 pm

Which loan companies were contacted? What questions were asked that sollicted a response that DP "will be placed" on a no loan list. "Will be placed" is about as vague as valley fog. And has that homeowner ever stated what the HOA specially did to prevent her refinance?

niki king link

1/4/2022 08:32:54 am

I AM the homeowner. I AM also an experienced Broker and Loan officer. The HOA here is on a "DO NOT LEND LIST" NO REASONS OFFERED BY THE HOA. I cannot refinance, I have excellent credit and income. It is not the lenders, it is the HOA who is on the no lend list! I am very sad over this. Huge HOA fees and I cannot even close my transactions any longer here. Sad for my buyers, sad for me personally. This is REAL people. I live on Natoma and am an owner. I never got involved in the HOA drama because being in real estate, I see this all the time, but now it has affected me personally and we are given NO reasons why we are on the list..

Mary Maloney

1/4/2022 11:00:02 am

Hi Sven, Desert Princess has been on Fannie Mae's radar for many years. "Do not lend" list is an industry term we use. As a Realtor, I can tell you, it has been such an issue that there are only 2-3 lenders that will even touch a loan here and that was because they were doing what is called a "limited HOA cert". Our budget, the way it is written and the co-mingling of expenses with the country club operations is the problem.

Ann

1/4/2022 04:42:25 pm

AND PETER WEBB (AND PERHAPS SOME OF THE OTHER BOARD MEMBERS CLOSEST TO WEBB) AND JERRY STORAGE HAVE KNOWN FOR SOME TIME THAT THE FINANCIALS WERE AN ISSUE AND HAVE CONSCIOUSLY CHOSEN TO DO NOTHING. AND WORST OF ALL, YOU WERE ALL KEPT IN THE DARK ABOUT IT.

Judith Stephan

1/4/2022 03:51:31 am

What is a "do not loan" list? HUD loans are not allowed on leased land. Some lenders will not loan to homeowners in developments which have a high percentage of rentals. The HOA board of directors (bod) does many improper things, but let's have facts before we make accusations.
Also, can we put the so-called desert princess country club (DPCC) discussion to rest - permanently! This another example of never-ending chatter without actual knowledge including, shockingly, the board.
DPCC was the corporation formed by the developer of Desert Princess. As is standard practice, DPCC was dissolved long ago when the development was sold to enough homeowners to form a new corporation, the DP HOA. There is NO separate organization called the DESERT PRINCESS COUNTRY CLUB. Yet on the website, Jerry Storage is listed as the CEO of DPCC. As far as I know, he is NOT an officer of our HOA.

Mary Maloney

1/4/2022 10:56:29 am

Judith, as a Realtor and homeowner I can tell you there are facts! The issue at hand has NOTHING to do with leased land, this has to do with our HOA budget, co-mingling of expenses and revenue with the country club budget and what Fannie Mae and Freddie Mac will accept in guaranteeing a loan in the secondary market.

If not addressed, there will be no lenders who will lend on DP and our buyer pool will be limited to cash buyers. Period.

This has been a known issue by our board and Jerry Storage.

Judge

1/10/2022 01:54:38 pm

Jerry Storage has a lot of explaining to do!

Marianne Thomas link

1/4/2022 06:30:25 am

Could someone explain what the board has done and why it has the effect of putting the DP on the "no loans" list.

Mary Maloney

1/4/2022 10:50:16 am

"do not loan" list is an industry term we use in real estate and lending. This has been an known issue at the Desert Princess for years now by the HOA board and the management company. As a Realtor, I can tell you my preferred local lender has done everything possible to help the DP board understand the problem. This is a real issue that needs to be addressed.

Glenda Wilson

1/4/2022 07:09:55 am

I am a local realtor here as well as homeowner. You should know the truth about loans on Indian Leased Land. It requires a "35 year land lease to get a 30 year mortgage"...so if a homeowner has a land lease expiring in 2044 they would need to extend it before getting a mortgage...or refinance. You can call Las Estancias and talk to Arimeda Sandival who heads up the management portion for the Desert Princess. She will verify the individual's lease expiration. There ARE lenders that will lend on Indian Leased Land...Loan Depot downtown Palm Springs is just one of them.

Long story short: it's the individual homeowner needing to extend their OWN land lease that is the problem. Current price to extend is a flat fee of $10,000 and we expect the Bureau Of Indian Affairs to increase that extension price soon. They just don't give us a "heads up" as to when they will do so.

niki king

1/4/2022 08:42:44 am

Hi Glenda, this is not correct I am sorry. You sold me this condo. There are plenty of years left. This is something NEW. WE ARE on the Do not lend list just as of this last couple weeks.. The lenders who DO loans here on leased land like Eric from Loan Depot etc.. are saying there is a lawsuit or something going on. The attorneys are involved and there is NO reason I have been able to find out.. By the way, please call me or come over, I have not been able to find your number. It was NOT over remaining years, qualifying, anything. I was simply told NO loans period! Here is the direct response I received from the lender who has done loans here for years.. " Jerry Storage the CEO of the management trust put the controller named David Mirre on the email he was working with. They told him they have their attorneys involved" They and their attorneys have to fix this with Fannie Mae and Freddie Mac as it is too complex for hiim and involved attorneys" This was his response to me. By the way, my fico is 800, my income is excellent and my LTV is 50%. ANY lender would normally do my refinance.. I stay OUT of drama and have been OUT of this mess, but now its affecting MY life and MY job. Truth!

Mary Maloney

1/4/2022 11:55:14 am

You are spot on Niki!! This has nothing to do with leased land and everything to do with our HOA. This has been a known problem for many years and frankly one of the reasons we voted YES on the recall. The lack of leadership in protecting us has fallen short.

Ann

1/4/2022 04:52:18 pm

Dear Glenda,
This issue of being on the 'do not lend list' has nothing to do with the Land Leases. Since you are a realtor, and buy and sell in Desert Princess, I would highly recommend you educate yourself on this matter. Perhaps call Loan Depot, talk to Jon-Eric, he will update you. You will want to know and be aware of the facts regarding all of this if you plan on taking new listings in DP. It will impact all buyers and sellers. And your business,

Judge

1/10/2022 03:01:31 pm

Yes Glenda please get the facts correct. Was that the reason you couldn't sell our condo?

Richard Wilson

1/4/2022 07:28:17 am

My property is in the final week of closing it is scheduled to close on the 5 th of January but my agent had warned that there is “language “ in the Desert Princess HOA that is causing FHA some concern. I will keep you posted

Mary Maloney

1/4/2022 10:46:53 am

Yes it is true. You might be ok because you are in process already. Fannie Mae and Freddie Mac will not accept any new loan originations.

Joan

1/4/2022 04:55:31 pm

Exactly, if they received your buyer's paperwork in time, prior to the cut off, you may be one of the lucky few to get out of here in time. If we can only accept cash buyers or hard money loans, that will absolutely impact and devalue our investments here in DP.
Let's give a round of applause to all those who have known about this and done nothing. "Sorry, not sorry" for the sarcasm. It's well deserved.

Maggie Hood

1/13/2022 08:30:26 pm

I APPLIED FOR A RE-FI BACK IN NOVEMBER. WELLS FARGO HAS THE LOAN NOW. I HAD CALLED NO FEWER THAN FIVE LENDERS AND ASKED IF THEY LOANED ON LEASED LAND AND NONE OF THEM DID. SO I WENT TO WELLS SINCE - THEY HOL THE LOAN. THEY RAN MY CREDIT AND THEN OVER A MONTH LATER - I GOT A LETTER "DENIED - PROPERTY DOESN'T MEEET LENDER GUIDELINES" YEAH - SO WHAT THE HECK DOES THAT MEAN. BY THIS TIME THIS BLOG WAS UNDERWAY WITH TALK OF '' NO LOAN LIST" . I CALLED WELLS AND ASKED FOR THE SPECIFIC REASON, WHICH I HAVE IN WRITING (NOT WITH ME AT THE MOMENT) AND YES, IT'S ABOUT CO-MINGLING FUNDS. COUNTRY CLUB AND HOA. PERHAPS CC LOSING MONEY SO WE AT DP COVER THEIR LOSSES - THIS IS WHAT IT'S SOUNDING LIKE AND WHY WE NEED A MEETING WHERE JERRY STORAGE THE BOARD ANSWERS THESE QUESTIONS. PROBABLY SHOULD HAVE AN ATTORNEY THERE TOO.

Judge

1/4/2022 07:55:40 am

True! We tried 3 different times. How do you get out of here?

Ryan

1/4/2022 08:42:09 am

I refinanced through Better Mortgage without a problem. However I'm in a villa and own the land. It's likely due to the fact that you are trying to refi on leased land, which has nothing to do with the HOA. You need to ensure you have enough time on your land lease before you can refi.

Mary Maloney

1/4/2022 11:57:02 am

Hi Ryan, the leased land has nothing to do with the issue. It is a HOA budget and co-mingling of expense issue that has been known for years, but a handful of lenders developed a work around. If you have already closed your refi then you got in before the shut down by Fannie Mae and Freddie Mac.

Michelle

1/4/2022 12:43:32 pm

I appreciate this blog as a communication tool for our community. The concerns and comments posted here are enlightening, especially as this is an extremely serious issue that affects all of us. My question is simple....When does the HOA/Board intend to address this issue and communicate to the owners the reality of what's happening and why? Open, transparent communication would go a long way to avoiding unnecessary speculation and concern on the part of all residents.

Mary Maloney

1/5/2022 08:51:00 am

Great question Michelle! If you look back, I can't even find where this was even DISCUSSED at a homeowners meeting.

Mary Maloney

1/4/2022 12:33:17 pm

As a Realtor and homeowner I want to help bring some light to this REAL ISSUE we are facing here at the Desert Princess.

First and foremost, this is NOT a lease land issue. Period. Nothing about how much time is left, etc. has anything to do with it.
Second, if you already refinanced, good for you, you made it through before the shut down. We are talking about NEW loan originations.
Next, this has been a known issue for years by the HOA Board and Jerry Storage of Management Trust. Fact!

With that said, the issue is how our HOA budgets are drafted and the co-mingling of expenses and revenues (as well as lack of revenue) of the country club operations (golf, restaurant, tennis, spa, etc) When a lender gives you a loan, they are following their institutions guidelines, but also looking at Fannie Mae and Freddie Mac's guidelines to ENSURE they can sell your loan in the secondary mortgage market. They don't lend you their money and if they do they often then sell the loan to the government and just service it thereafter.

Fannie Mae has had the Desert Princess on their radar for many years. The health, financial security, reserve study, etc. are all part of what they look at when deciding whether to approve HOA governed communities. The main issue again is the budget and lack of true financial stewardship. A handful and I mean a handful of lenders figured out a work around with a "limited HOA cert" in which they had the HOA draft a limited budget that they submitted. Fannie Mae has caught on to this and said "no more" This is the simplest way I can say this. Whatever Fannie Mae does, Freddie Mac follows suit. So much so, that the deadlines for closing already in process loans with them is 12/31/2021 and 2/28/2022 respectively. No new loan originations are being accepted.

If you are on the "do not lend" list (which is an industry term we use), an UW must check a box in that file that certifies that have looked at this list and the complex is NOT on the list.

One of the local lenders has tried to work with the DP HOA, guide them in how to correct this issue and it is so complicated that their Underwriters have simply thrown up their hands because their advice is not being followed. Whether anyone wants to own up to it or not. Those of us in the field have been aware and trying to do something about it.

The idea to merge our HOA and Country Club IS A DEATH SENTENCE for getting a loan in the future at the Desert Princess. Let me repeat that, A DEATH SENTENCE.

What if no one can get a loan here at the DP? Well, that means every buyer has to buy in cash. How many transactions were completed in the last year in all cash? I will go through the MLS and determine the number of all cash transactions and report back. If only "all cash buyers" can purchase here, that limits the buying pool, inventory goes up, prices come down. It is simple supply/demand economics. Why have prices risen so fast? supply/demand. This could significantly effect our home values now and in the future. There are a lot of issues here at the DP, but this one alone could put us on a slippery slope to becoming the Desperate Princess.

Candidly, this is one of the main reasons why my husband and I voted YES on the recall. Our leadership at the board level needs to be fighting to protect our values and our ability to be attractive in the real estate market. Being ahead of these issues is the only way to solve them before they create a bigger issue, which now we are facing. This isn't a big surprise to our HOA board and Jerry Storage whom have been advised to get our attorneys involved to solve this issue with Fannie Mae and Freddie Mac. This will also not happen quickly because it has to do with the real fundamental way our HOA and country club operate. Kicking the can down the road has now caught up with us.

We have to have complete separation of expenses and revenues between our HOA and the country club operations. Hard to do when your HOA dues are supporting the amenities of a "public, for profit business" enjoyed by a few.

This will be a frustrating and complicated issue to solve, but it needs to be addressed and our HOA Board and Jerry Storage need to be held accountable.

Val

1/4/2022 05:09:40 pm

Mary,
You did an absolutely fantastic job shedding light on this matter. Thank you for taking the time to share your insight and bring clarity regarding this very concerning matter that we are now all facing.
I could not agree with you more re., kicking the can down the road, has now caught up with us.
And, I also agree 100%, that merging the HOA with the Country Club, is indeed a death sentence. It blows my mind that the board has been discussing doing just that. Clearly, those in agreement with that idea, have no clue in regard to the repercussions we will all have to suffer if they proceed with that plan.

Mary Maloney

1/5/2022 08:57:23 am

Thank you Val! Appreciate your kind words. In short, my lender said "DP is a hot mess". Head in the sand leadership has led us to this point. Our HOA supporting public amenities to treat it like a private club has caught up to us. THIS is business. Business people need to be running this. Period. This isn't some lazy HOA where the board is concerned that someone put up a flagpole in their front yard.
It would be prudent for us to possibly have 2 boards, a HOA board and a Board of Directors for the country club amenities.

Michelle

1/5/2022 09:43:06 am

Val, I concur. Mary, thank you for the detailed explanation. It certainly helps to know what is happening, despite the fact the news is bad. I also agree consolidating the two DP corporations is a death sentence for us. And it should scuttle any idea the Board may consider to borrow the money for their grand legacy landscaping. We'd never qualify for any loan under these circumstances.

Judge

1/11/2022 08:21:09 am

We completely agree! When?

Murray

1/4/2022 03:11:46 pm

"Desert Princess does not currently quality for Fannie Mae/Freddie Mac loans."

Period.
This is the resale market all the banks dump their loans off to. Most don't loan their own money.
This is a big deal once the market levels off.

This, boys and girls, is what you get by repeatedly electing morons.
And failing to price your business model to anything that approaches NORMAL.

Call Commander Jerry Storage if you have questions.
If he is in the office.

Call Peter Webb and ask him what he has been doing on the Board to prevent this.
Ask him if it is true.

There is a possiblity he doesn't even know.
If it is not in the papers in Canada.

Maggie Hood

1/4/2022 07:46:35 pm

true. I believe that this board AND Jerry Storage are hiding the true facts from us. I was not approved for a re-fi and it wasn't ME - it was Desert Princess that "didn't meet lender guidelines"
Huge problem so pay attention people - you will not be able to sell your property to anyone but a cash buyer nor will YOU be able to get a better rate by refinancing. It's time to demand from our board the "whole story" and the solution.

Judge

1/10/2022 03:08:05 pm

Here Here we agree. Storage & Webb have a lot to answer for!

Judith S.

1/4/2022 06:18:36 pm

Just to clarify a previous post I made, here's a quote from HUD guidelines:

"A Mortgage secured by real estate under Leasehold requires a renewable lease with a term of not less than 99 years, or a lease that will extend not less than 10 years beyond the maturity date of the Mortgage."

For example, your lease must extend 10 years or more from the end of the mortgage so must extend for 40 years or more for a 30 year mortgage. You can only get a HUD loan under these conditions.

Lois Wilkinson

1/5/2022 09:08:54 am

It seems to me that this would be a good focus for questions at our "meet the candidate" meeting. Someone with comprehensive knowledge about this issue (maybe with firsthand experience) could frame this question for our candidates.

Ann

1/5/2022 02:18:02 pm

That is a good idea... however, it is my understanding that the "Meet the Candidates" forum is not going to be a 2-way conversation; but instead a "set-up" and censored dog and pony show with the focus of showcasing the favorite candidates of the some of the members of the BOD.

Joan

1/5/2022 02:19:12 pm

On that note, I can and cannot wait to hear what kind of baloney we are fed by the BOD in response to this issue.

Kay

1/5/2022 12:14:34 pm

Just talked to my realtor who does a lot of business here. There is no problem with loans for villas. The issue is seen with condos WHEN someone wants a low down payment. He says: work with a reputable local lender and you shouldn’t have a problem.

Murray

1/5/2022 02:13:39 pm

Incorrect.

This is HOA wide at DPCC

Joan

1/5/2022 02:16:13 pm

Kay, I hope that is correct. However, it is possible that he is not yet on the up and up yet. Loan Depot is one of the most popular lenders used in DP and this is not what others have heard, or understood it to be...
You need to verify this with a lender. And not a realtor.

Teresa

1/5/2022 04:03:33 pm

There seems to be a lot of misinformation going around. The issue of the Land Lease is real, do you know that Estancias is on the title of your home? Had the same issue in 2021 and I just wanted to re/fi a car loan …. don’t even have a mortgage, it was a cash purchase. No ands, if’s or buts, a vast amount of lenders simply will not do financing on leased land. We didn’t have to have a loan, but like most people wanted to take advantage of of the v low interest rates. One of the Realtors who lives at DP directed us to Loan Depot, and yes we got the loan. I assume many of us have not lived on an Indian Reservation before, and it appears to be a whole different ball game, I still have a hard time getting my head around the fact they’re on the title of my home even though I own it outright. I have difficulty believing that this has anything to do with the 𝘏𝘖𝘈. Not only is there a lot of misinformation out there but many things are innocently misinterpreted, and misunderstood. I sincerely hope you get your loan, I know the frustration, believe me I was fit to be tied. Good luck to all of you and a very Happy New Year!

Joan

1/5/2022 06:20:36 pm

Dear Teresa,
This is indeed a very confusing topic.
It DOES have to do with the HOA. I was informed of this issue over a year ago by lenders. The HOA has failed to correct the way they co-mingle some of the financial dealings. There has been a way and is a way to correct this. Not quickly, but it can be done. Peter Webb and Jerry Storage at Management Trust have known about this for a while now and have done nothing. They kicked the can down the road and now here we are.
There are other HOAs on leased Indian Land who do not have this problem. There are others that also do because they too, have avoided the issue.

MAGGIE

1/13/2022 08:38:45 pm

Those of us on a land lease do not even have a title - do you realize that? We have something like an "Assignment". I wasn't paying attention when I was purchasing so I missed that. (and I'm a Realtor but we never sold lease land in Ventura County). So even if you "own it outright" you are still leasing the land AND you don't even have the title.

Craig Robinson

1/5/2022 07:33:54 pm

There are two different reasons stated in the comments above for how we got to this circumstance. I do not blame the Board or Management Trust because they are just as unaware of the facts as most of you are. Most of the Board and all of Management Trust were not here during those times.

As to the Land-Lease issue, this has been an issue since the early 2000s, a few years after the HOA bought the Country Club out of bankruptcy. Owners with fee title are not affected by the land-lease issue. Some lenders simply will not lend on a land-lease period. Others require sufficient time remaining on the land-lease. Some time ago the HOA negotiated an extension of their master lease, and an amount was quoted to each condo owner to extend his or her personal land-lease. Each of us had the opportunity to extend his or her lease at that time. Whether your particular land-lease has been extended depends on the action of the condo owner at that time. I personally did not extend my land-lease because I will be 97 in 2044, if I am still around, and it will be my kid's problem. If this is what is hanging you up, see the comments above that give the name and number for Las Estancias to negotiate the extension of your land-lease. If you were unaware of this at the time of a recent purchase, the Board and Management Trust are not to blame.

The second thread is the financial circumstances of the Country Club. I refer you here to my comments on this blog dated 7/16/21, the subject "Proprietary Dues". There is no 1.5-million-dollar loss in the CC. At the time of the acquisition of the CC, the HOA made it easier to pay dues, rolling the HOA dues and Proprietary dues into one payment, HOA dues. I do not know why the DP is on the No Loan list, but if the financial condition, as stated above, is the reason, it should easily be resolvable by our attorneys.

If these are facts that you were unaware of at the time of purchase, you only have one of three people to blame, your financial adviser, real estate broker, or yourself. Many of you are complaining about things that you claim are true and are affecting your property value. In my opinion, your complaints, without full knowledge of what has occurred in the past is what will affect property values. Anything you write here is public record, accessible to anyone, even potential buyers.

Joan

1/5/2022 08:09:06 pm

Craig: With all due respect, You do not understand the core of the issue.

Craig S Robinson

1/8/2022 12:52:40 pm

Joan, you are correct in one respect. I have no personal knowledge of why we are on the NO Lend list. Nor do I know what you mean when you say, "the core of the issue". It simply is not my expertise. However, I do not want to hear the reasons or legal conclusions from real estate brokers or loan officers. Nor do I want to hear that it is the Management Trust's or Board's fault. I don't think they have much to do with government decision making.

Whether we are properly on the No Lend list, and whether there is anything to do about it, is the province of an attorney who handles these matters. We simply need to hear these things from an attorney, not self-appointed experts.

Judge

1/10/2022 03:15:37 pm

Why should we as homeowners have to hire a attorney? The BOD or HOA should have first hand knowledge about this issue? Why don't they clarify the facts !!!!

Craig Robinson

1/10/2022 04:44:44 pm

The Board and Management Trust may have knowledge of whether it exists or not, but they have no knowledge as to what or how to do something about it. If a lawsuit or some type of administrative hearing is required, only an attorney can represent a corporation or entity like ours. The Board and Management Trust have no standing to represent us in those proceedings.

I have no interest in this particular matter. My condo is paid for, and I am not selling. I idea that we rely on nonlawyers to do a lawyer's job is simply incompetence. It is also illegal for them to express legal opinions. Sometimes you just have to spend money to do what is in the best interest of the HOA.

Anon

1/10/2022 05:58:20 pm

Craig:
I can tell you this is not the case. I personally know that lender(s) in the area have reached out to Management Trust to notify them of the issue and what exactly the problem is.
And, never say never. Sometimes, things happen in life when you have to sell unexpectedly. You could need to go to Memory Care in your later years and be in a position where you need to sell your condo for whatever reason. Just sayin'

Judge

1/11/2022 08:29:14 am

Craig, please reread what you just wrote. It makes no sense?

Craig Robinson

1/11/2022 04:22:14 pm

As an attorney I reread everything a number of times before I submit it. It makes perfect sense. It doesn't make sense only if you haven't read the two preceding posts. What don't you understand? California law states that an entity like ours can only be formally represented in legal proceeding by an attorney, not Management Trust, a Loan Broker, or a Real Estate Broker.

As to the part that involved my age, I am not looking to refinance my home because it is fully paid for; therefore, I do not need or want to refinance like the bloggers above who are being hurt by the No Lend position.

Judge

1/20/2022 11:35:31 am

Craig, there are a lot of people like you that own their home. This does affect everyone who live here. Do you have any empathy for others who might need information?

Judith Stephan

1/12/2022 10:24:46 am

New topic: Country club merger

Finally the existence of the other corp. is revealed, and I found it in the CA Secretary of State website, but not the federal. There are a LOT of unanswered questions about this corporation. What legal authority did the Desert Princess board of directors have to form a new corporation in 1992 and transfer all of the DP HOA assets to it? Was there a vote of the members?

When and how were the officers elected? When were the required meetings held and where are the minutes of same including financials?

What assets are owned by this corporation? What liabilities does it have? Where are the financials? Budget?

Where are the tax filings – both federal and state? Why weren’t the statements of information filed with the secretary of state for many years. (There are penalties for not filing. )

What is the federal tax ID # for this corporation? Were ANY federal tax returns ever filed?

No wonder there is so much paranoia about secrets and missing funds. This is outrageous!

Let's not vote on a merger until ALL questions are answered and ALL issues resolved.

Anonymous

1/12/2022 05:27:33 pm

All good questions, Judith. My additional question is this: Is the merger after all these years somehow related to enhancing the probabilty of approval of a proposed $5.2 M loan to Desert Princess to carry out the landscape project? Can't shake the feeling the two issues are somehow intertwined.

Terry

1/14/2022 02:40:58 pm

Simply put, merging the two entities will create a commercial property. Lenders will not be able to place residental loans at DP because Fannie and Freddy will not buy these loans. Risks involving residential loans are a world apart from commercial loans. Local lenders are not going to make portfolio loans. To sell you will need to find a cash buyer who will greatly discount the price. PROBABLY WORST IDEA EVER HATCHED AT DESERT PRINCESS

Allis

1/21/2022 07:19:04 pm

A $5.2M Loan for landscaping improvements? Was this Hal and Ted's last hurrah? The first order of business the HOA must address is the "do not loan" status. Then it needs to re-evaluate its priorities. Is there a strategic plan in place? There is a shift in the type of buyers starting to move into the vacation home market. To continue to grow to compete with communities in the area we must consider updates that will appeal to a new generation of buyers, including adding new color schemes to the color palette of homes in the community. Gen X loves white homes; figure out a white scheme that works with the roof line and fits in with the other colors.

Caroline Leach

9/7/2022 02:54:04 pm

This has got to be addressed. This is real and homeowners can not refinance to make improvements to their homes because of the no list.

Tonya Reese link

12/2/2023 11:34:45 am

I’m curious if this issue has been resolved. I’ve asked several board members & staff and have been told they have no idea. Does anyone know what we can do to reverse this if it’s still enforced?

Maggie H

12/2/2023 12:59:02 pm

Hi Tonya,
This has NOT been resolved. It will never be resolved, not with this board, maybe not with future boards. The BOD over the years has paid for Country Club budget shortfalls with HOA funds, thus causing us to become more of a "Commercial type" property rather than residential, which is what the government loans specifically "guarantee." It has nothing to do with land leases. It has EVERYTHING to do with mismanagement by past and present Board of Directors and the Management Trust, who "manages" the place, ie, Jerry Storage. Most of the sales in DP since 2022 have been cash buyers or specialty high interest loans.

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Charter

This blog is designed as a means to provide transparency and informative access to the policies and protocols of the Desert Princess Palm Springs Homeowners Association, the governance of the HOA Board of Directors and the management of the community’s assets by The Management Trust. The expressed intent is to establish a neighborhood hub for trusted connections and the exchange of helpful information, goods, and services; it is hoped that homeowners will use it to build a stronger and safer Desert Princess Palm Springs.

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is desert princess on the "do not loan" List?

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