IS THE PROPOSED CDAC LANDSCAPE REVITALIZATION PLAN THE MOST PRUDENT APPROACH FOR OUR COMMUNITY?

4/1/2022 43 Comments

IS THE PROPOSED CDAC LANDSCAPE REVITALIZATION PLAN THE MOST PRUDENT APPROACH FOR OUR COMMUNITY?

Do we need to revitalize certain parts of our Desert Princess landscape?

The answer is a definite YES! The concern is, do we have enough information at this point to commit to the revitalization plan proposed by the CDAC?
The CDAC is asking every homeowner to commit to 15 years of monthly payments on a loan of $5,260,000 to be used to revitalize our landscape.

Based on the presentation by the CDAC at the recent Town Halls, we know the following:

The $5.26 million cost estimate is at least 2 years old and no formal quotes have been solicited.

The cost of repaying the loan was not included in the presentation (loan costs can be estimated at about $1.99 million on a 15 year loan at the 4.5% as discussed, thus reducing the actual funds available to about $3.27 million). How much of the proposed revitalization will actually be completed at $3.27 million?
It is unclear how it will be determined where plants and materials are going to be placed, i.e. there are no drawings beyond a few example renderings from over 4 years ago.
It is not understood why the revitalization plan has to be completed in 18 months. Can it not be accomplished methodically over time with costs incorporated in the regular annual budgets instead of being imposed as a special assessment?
What impact could a $5,260,000 burden have on our current Freddy Mac and Fanny Mae issues when homeowners try to get a mortgage or refinance?
How will this loan be secured? Will homeowners be asked to immediately pay back this loan, if for any reason, the loan is called in the future?
In accordance with our CC&Rs, this special assessment requires an affirmative vote by at least 604 homeowners to be approved. If approved, each of the 1206 units will be assessed a total of approximately $4,361. For some, a one-time payment may be preferable over committing to a monthly increase of at least $32 for the 15 year life of the proposed loan. Why was this option not presented?
Is there really any reason that we have to commit to this loan now without having all the facts? Would it be prudent for the CDAC and the Board to first address all the above questions with detailed definitive information before asking for a vote?

THE BLOG WOULD LIKE TO KNOW YOUR THOUGHTS.

43 Comments

Douglas K Goof

4/2/2022 06:36:11 am

We got a $4M sprinkler system for the golf course & community, well someone needs to use this system because the waste of water is incredible. Plus areas already with desert landscaping still needs maintenance, pulling weeds, dead plants, etc,etc. This is NOT being done now with larger areas of desert landscape would require much more maintenance. This committee is dreaming fix what’s already done before you start spending more of my money!!!!!!!

john Taylor

4/3/2022 11:14:52 am

First let me say I am glad that this blog exists and gives all of us a chance to hear other homeowners' thoughts. But whoever is posting the main information needs to vett her information better.
When you borrow 5 million dollars for a construction project, the lender gives you 5 million and then charges you interest over the term of the loan on the 5 million. In the case being proposed that brings the total cost of the project to roughly 7 million Ove the 15 years.
I agree that the project could and should be handled in a much more cost effective and timely manner. I am 77 years old and have been in construction since I was 17 and this is not the time or way to approach this project

LOWELL FRIEDMAN

4/2/2022 08:20:33 am

Has the Finance Committee reviewed the CDAC plan? We will have even less funds for the revitalization of our landscape if the loan interest rate is more than 4.5%. For example, a 5% loan will means that we will have only $2.74 million available out of our $5.28 million loan. And if have to pay 6% we will only have $2.5 million available for CDAC's Plan (homeowners will be paying over half the money to service the loan). Lets hope the the ballot states that if the loan rate is too high, the board will not go forward with this plan. Otherwise, The homeowner could be saddled with a commitment with a half completed revitalization of our landscape.

I am for the revitalization of the landscape. But is this the way to go. We need to take a step back and find another fiscally reasonable alternative to get our revitalization of our landscape done.

MAGGIE HOOD

4/2/2022 10:39:23 am

there is NO WAY we will NOW get a 4.5% loan! In January I got approved for an "investment loan" for a house at 3.99%. I didn't buy that one but in February when I got pre-approved again, the rate had gone up to 4.25% so I locked in at that . NOW - that rate is over 5%. This board is flat out WRONG about the interest rate now being 4.5%. it's rapidly going up
Not only that, but the premise that this will save on the water bill is not backed up by FACTS. In Diane's presentation, she stated they "expect to save at least 5-10% on the landscaping water bill. We think it will be more, but we are estimating conservatively" No actual numbers were mentioned. So - how much IS our annual landscaping water bill? How much is 5% of that ? How much is 10% of that ? If the water bill is $500,000, 5% of that is only $25,000! So 10% is $50,000. They literally have produced not a shred of evidence regarding money savings, nor have they addressed the biggest waste which is all the waterin they do OUTSIDE the property on Landau, which regularly has rivers of water running down the street. In spite of the 5 years and all the architectural costs, this is NOT a proposal that is convincing me that raising my dues another $34 forever, not to mention the October increase we are sure to have, deserves my YES vote. I am voting NO

4/2/2022 08:43:47 am

SO MANY QUESTIONS AND SO LITTLE REAL ANSWERS FROM THE CDAC PRESENTATION.

The board in a planning session describes themselves as a “municipality”. ..then act like a “municipality”. If they want to upgrade the property than plan for it and budget for it like any “municipality” would.

I know society lives by instant gratification but this is not the time. the saying “patience is a virtue”, can and should come into play now.

Let’s get all the facts to make an educated decision. What’s the rush? This is not pocket change. It is ALOT of money.

Let the Board know we need a well thought out plan that does not require us to mortgage our future.

Let the Board know we don’t want to spend, spend, spend.

Let the Board know we can do this in a 5 year period of time like we do with painting the condos, repair the streets, redo the pools and other infrastructure items on our beautiful property.

I don’t know about other homeowners…in our household we set priorities for large projects (such as re-landscaping) we need/want. We research it, talk to more than one contractor and build a relationship, obtain numerous bids/quotes and then select the be option. We budget and work within our budget.

With many years of remodeling experience…we know it will always cost more than expected and always take much longer than promised. Things happen.

SO PLEASE TELLL OUR HOA. BOARD TO PUT A HOLD ON THIS GOING TO VOTE,!
WE NEED ALL THE FACTS!

D. R. Arevalo

4/2/2022 08:52:00 am

Why are there not reserves for this? What are we paying for in our $710/mo if not including a reserve for future landscaping projects?! And why are we not focused on the rash of crime going on here lately? There was a break-in on North Chimayo just a couple nights ago with the homeowner at home. Not to mention all the car and cart thefts. What are our priorities? Pretty posies and bushes, which should have been reserved for all along, or our safety?

Terry

4/2/2022 09:49:56 am

I have a few questions and concerns involving the consequences of what sounds like a not very well planned landscape revitalization spend.

What is the big hurry about jumping into this large amount of increased debt? What assurance do homeowners have that DP won't take down a loan regardless of a ridiculously high interest rate given that this loan will essentially be on the backs of the homeowners.

My biggest concern is that this proposed new debt will take us further away from ever getting off the no lend list. This is the pivotal issue facing all DP homeowners, much more consequential than the life span of trees.

The HOA, Management Trust, and the BOD have a fiduciary responsibility to operate in the BEST INTERESTS of the homeowners. It would not be impossible to get DP off the no loan list, but it would require changing the operation and possibly even the ownership of the "country club" to get this monkey off our backs. The current operation is not financially sustainable. Losing our ability to unlock our equities with no mortages is too steep a price to pay to assure that the few can continue to enjoy their private little county club while the resulting debt falls on the homeowners and guarantees that there will be no mortages available. I do not see that consequence as anyway in the best interests of DP homeowners. DP leadership needs to re-think their fiduciary responcibility to the homeowners or the future could become unpleasant here at DP.

Frank Bailly

4/2/2022 10:19:40 am

First off I am in favour of upgrading all projects that would enhance our community at DP. Landscaping being one of them. But with priorities and common sense. A few questions on the proposed budget . If we borrow $5,260,000 and pay it back over 15 years my calculations are as follows . 1206 members would pay $32 per month, times 12 months, times 15 years, equaling $6,946,560 , not $5,260,00 as presented. It would seem we will pay $1,686,560 in interest. Are we borrowing all the money at once or is it a line of credit, in increments. If at once , that means we will be paying interest on money that will be sitting and unused for periods at a time . One might be concerned that idle funds may find themselves in a general revenue steam.

Bob

4/2/2022 10:45:59 am

As currently structured, the vote to pass the CDAC Landscape Revitalization Plan requires a majority of quorum.
The board has declared the quorum to be one-third of our 1206 homeowners

If the BOD accepts the additional $32 to be paid as a single amount $3,491 rather than $4,361 over the 15-year term, it becomes an
assessment which would require a majority of a quorum which would require 50% of 1206 homeowners rather than one third of 1206.

The board is attempting to avoid the larger quorum in an attempt to have CDAC proposal pass.

A BOD open meeting will be held at 9:00 AM on Monday, April 11 in the Masters Lounge. At which
time the BOD will vote on the CDAC ballot.

You are encouraged to attend either in person or by Zoom and speak to the BOD during the Open Forum.

Let your voice be heard.

Michelle

4/2/2022 12:26:25 pm

Bob, you are right on point, sir. I attended the monthly HOA meeting when the President announced that the issue had been discussed in Executive Session and proceeded to tell the attendees that quorum for purposes of this vote would be 1/3 of all owners eligible to vote. In this case, that would be 402 to cast ballots and a mere 202 to vote in favor of this assessment. I have no idea how this decision was reached given what is outlined in our CC&Rs with respect to what appears to me to be a special assessment.

I reviewed the minutes of that meeting in detail where in Executive Session,(closed), it outlined the items reviewed with Legal, ITEM #10. It states " Voting quorum for CDAC landscape proposal". It begs the question what warranted a closed meeting with LEGAL to determine the quorum that is already outlined in our own CC&Rs regarding special assessments. Did legal determine this was somehow NOT a special assessment. I believe the homeowners deserve an explanation, because as it stands, the rules decided upon by the Board will permit 16% of our community to put us in debt to the tune of $5.3 million dollars over 15 years.

Michelle

4/2/2022 03:31:08 pm

I forgot to mention a further observation. While the minutes reflect the vote quorum was discussed in Executive Session under Legal, the Board's announcement of what was decided is nowhere to be found in the Open Session minutes distributed. Strange that.

MAGGIE HOOD

4/2/2022 11:02:15 am

the "no lend list" should be a top priority. I tried to refinance in November to get a lower interest rate. I was denied and I was the one who provided the exact reason why to the board. Now, I'm remodeling my kitchen. I have $200,000 in equity but can't get a home equity loan due to this. They (board) have now hired (at our expense) yet a second "expert" to tell them what can be done because they didn't like the answer the first expert gave them. And you are correct - until we find out what can be done to resolve THIS issue - they should in no way encumber the HOA any more. Rise up people! This board is running amuck with our money!

Summer

4/2/2022 12:00:30 pm

I echo the comments of the previous posters - I cannot understand why this plan is still being prioritized right now in light of the very serious issue that Terry cited regarding DP continuing to be on the do not lend list which prevents homeowners from being able to access our own equity in our homes. To pursue this project with an associated price tag of an extra $32/month minimum for 15 years or a $4,361lump sum for every homeowner in light of this most certainly does not appear to be in the BEST INTERESTS of homeowners a or represent proper fiduciary responsibility by the HOA, BOD or Management Trust. This Fanny Mae/Freddy Mac issue needs to be resolved first.

I agree with D.R. Arevalo - we are experiencing an increase in crime with the thefts of numerous golf carts AND cars, not to mention that very scary break-in the other night with the homeowner actually there. I was told that the previous head of security Ariel Hackney has left - has anyone replaced her? We deserve to feel safe in our community and this should be a priority.

Pamela

4/2/2022 01:37:35 pm

Being a new owner, I totally agree with everyone’s above response. This is not the time to be spending this crazy amount.
Our questions at the meeting were not read out, therefore didn’t get a response. We asked: F&M no lend list and Security should be top of the list instead of Planting & landscape renovations. The Queen palms that are creating a problem should be on the “normal” list of the regular landscaping company as these are considered a problem for condos & villas. Also proposed that ONLY real necessary areas be addressed first therefore reducing the BIG number to spend.
As Diane mentioned there is over $16 a month in savings down the road, but that will not reflect in the supposed increase of $32 a month for everyone. We will continue to pay this increase along with maybe other unforeseen future problems. We are not happy to be locked into a 15 year loan which in reality could be higher as the numbers we were given were from an old estimation. This is not the way to go about spending other people’s money and locking us owners into a situation that could be a problem in the near future. We certainly do not want to be straddled with an HOA monthly payment that could be increased on a yearly basis. The majority of the landscaping that we see around the area is in very condition and looks beautiful. Landau entrance could be renovated and in particular the lighting for the night. But again the watering system needs to be checked as we see lots of water running down the street. What a waste! This area could be fixed at a minimal expense. Now is not the time to be discussing or even thinking about spending over 5 million! The Board should be concentrating on the immediate problems; Security and F&M no lend list. They waste their time and ours.

Pam

4/2/2022 01:52:00 pm

I will not vote for this...are you kidding me???? We have SO many other things to worry about! Can you even sell your condo if they dont fix the problems we already have??? It's obsurd to think we can spend this money in these uncertain times! The HOA board needs to WAKE UP!!!

4/2/2022 05:01:03 pm

Do you trust them to administer this any better than they do golf and F&b?

I don’t.

Trevor M

4/2/2022 05:16:57 pm

I have no problem with making Desert Princess look pretty. I would like true facts and figures before I will be voting on this very large project. With all the unknown numbers how can we be sure the actual increase in our HOA dues won't be $42 or $52 a month. Peter Webb said himself at the townhall meeting that he wished he could just pay $4,360 off in one lump sum. This sure sounds like a special assessment to me.

Nancy P

4/2/2022 05:33:10 pm

As a new homeowner of just over a year I am very confused about this landscaping project. We asked the HOA when we moved in who was responsible for any changes to our villa front yard. They told us we were. We had the old bushes and plants removed and new desertscape and plants put in. Which cost us around $1,875 not $3,000 as per the estimate. According to the 7 step plan the villas will have their front yards redone. Is this fair for those of us who already have paid out of our pockets to have our front yards (both in the villas and condos) converted to desertscape and all shrubbery removed? Why should I be paying for the condos, pools I don't use and my villa which is already done. Maybe the committee should relook at this plan and starting saving the money for the areas that really need to be updated and not increase our dues.

David Grant

4/2/2022 06:03:20 pm

The CDAC have identified a nice to have project.
If they go ahead with a vote on this project, we must vote no to any more spending on this wishful idea.
How much cash has this group, without our approval, already spent on promoting their idea,
did you all enjoy the refreshments and handouts, provided by yourselves and every other homeowner, at the big sales event?

I will not address the 5 years in the making etc.

Examining their planning as we know it:-

They say the cost will be 5.26 million, as noted by others, that estimate is over two years old and so is worthless. Expected actual to be at least 6.575 million before financing.
Apparently, they forgot to price in borrowing costs. Add an additional 3.413 million over 15 years.
They say the interest rate on a proposed loan would be 4.5%, as noted by others that is wishful thinking and so is worthless. Expect at least 6%
Did they solicit written quotes on actual costing on any aspect of the plan? Sorry we forgot to plan for that.

So, at a conservative estimate the actual cost will be closer to $10,000,000.00 That is Ten Million dollars.

5 years in the planning?

As noted by others on this blog, the reality of getting the financing part, on any project, wrong could well mean bankruptcy for the Desert Princess and some homeowners.

So, in reality there is no plan, viable or otherwise.

So next will be a vote, again at our expense, in order to reject the plan.

The CDAC are to applauded for their community minded motives. But have shown they are out of their depth.

Please, CDAC, go back to the drawing board, consider the input of those on this blog, and everyone else at the Desert Princess, ask for help,
there are some really clever people, who like you, love the Desert Princess.

Shelve the proposed vote on this project until you can present a viable proposal, complete with all the facts and figures, do not forget to include ongoing
maintenance and upkeep costs, replenishment and refurbishment etc. of all the proposed work. That way you will at least save the cost of a wasted vote.

Why did the CDAC not see fit to share all the handouts/materials they produced with all homeowners though the HOA portal, particularly those who could not attend?

5 years in the making?

Please do not hold anymore town halls at our expense. Post your ideas and plans etc. to the HOA notice board for all to see and participate in. Show some fiscal responsibility.

I invite all readers to critique my thoughts and figures and correct me where they find me wrong.

Dave Grant

Sunmer

4/3/2022 01:34:23 am

So what happens to those homeowners who don’t have a handy $4,360 like out of touch Peter Webb who seems to view this community as his own personal kingdom? And clearly considers special assessments of $32-52 estimated per month acceptable to all homeowners here in light of the already high monthly HOA fees of $710? This thinking is irresponsible and egregious.

4/3/2022 07:17:21 am

Where does this spending end? While I am not opposed to upgrading landscaping as needed, I am opposed to: every time there is an expense, the funds are generated by hitting homeowner pockets. I am of the opinion, there are a number if issues here:

1. At the meeting (which I attended), conflicting information was provided. I heard that if we do not commit to this now, there is no guarantee what the cost will be in the future and don't forget supply chain issues.. I also heard, they have no guarantee currently what the cost will be and there are supply chain issues. So....ummm...no real set in stone costs or availabilities determined either way. Big NO for me.

2. What if you want to sell and have not paid off your "fair share" of the loan?

3. Some owner may need to tap home equity to pay their portion - oops cannot do that - we are on the NO LEND list. Big NO for me.

4. Other potential projects on the table - upgrading the gym and the spa and patio. Are homeowners going to have to foot the bill for this as well? BIG NO for me.

5. The golf course and the restaurant continue to run a deficit. Who pays for this? I believe it comes from our pool of HOA fees. SUPER BIG NO for me.

Again, I am not opposed to upgrades, I am opposed to the funding theory here. The time is NOW to generate income from sources other than home owners pockets. Perhaps time well spent would be putting together a proposal on how to get the golf course and restaurant to go from deficit to income. And then bank that income to be used for these other projects. Oddly, it really isn't that difficult. so my big question is: WHY DOES THE BOARD CONTINUE TO BE COMFORTABLE WITH THE GOLF COURSE AND THE RESTAURANT TO RUN IN THE RED? IS THIS NOT THE MOST OBVIOUS CHOICE?

There are two ways to increase your bottom line: 1) spend less; 2) make more

Tom Rosa

4/3/2022 07:55:36 am

The reason I include the statement "wash rinse repeat" in most of my comments is simple. After 20 years of living at the DPCC, the constant idea that we don't know what's good for us, only the omnipotent board does is the overarching constant. I build and renovate resort properties as a profession, so I have enough experience to know this VERY LOOSE / VAGUE design will certainly cost more than projected. Years ago, when the committee was being formed, I was asked by a then board member to participate given my experience, I submitted my form and was summarily dismissed by the board. Now why would the board NOT want someone with the exact experience to participate? I maintain as I have all along, that they want THEIR agenda with no watchful eyes or criticism. So here we are, another pet project with inadequate study or costing. But only 200 + need to approve to move it along? NO how about a vote of all the homeowners not the 200+ that are " in the fold". I will have moved on by the time this plan gets implemented ( perhaps not ) but I suggest everyone wake up and demand proper vetting of massive projects like this. Demand (3 ) bids from qualified contractors in a "closed bid" format. Trust me, The Mgt Trust will try to award it to Oconnell to cover up the inadequacy of the documents. I say all of this having been in this business for 30+ years. Vanity projects are nice but not necessary. How about cleaning the mess we already have and some fiscal responsibility. Now there's and idea.

PMP link

4/3/2022 09:22:27 am

I went to both of the meetings to make sure I didn't miss anything. My questions (the same) for both meetings were not read or addressed.
Why has the Condo and pool landscaping not been kept current with the monthly HOA dues we are currently paying?
Where will the maintenance money being saved during the project go?
We saw photos of the current conditions around the property, where are the overlays that show homeowners what the areas will look like when completed?
If we are able to secure a loan, because of our reserves, then why don't we spend some of the reserves on this project?
Shouldn't the removal and other tree issues in the condo area be covered by the HOA monthly dues and not a special loan?
Has anyone considered the folks that live in DP, that are on a fixed income? What do you think of the increased price of fuel and food they are paying? Now you want to add more to the already high HOA's.
We have so many other projects that need to be completed, before we take this one on. Solve food and beverage and golf course operations, they should both be required to have a profit and loss statement that is in the black.
Why did the board allocate money for the fitness center? What is wrong with it? They charge outsiders to use the facility, where does that revenue go?
Putting the landscape revitalization up for a vote should be put on hold until more facts are presented and other areas of the DPCC have been solved.

Terry

4/3/2022 10:32:41 am

Taking on an additional debt which could WELL exceed 5 million dollars for the proposed landscape revitalization is inadvisable at this time for the following reasons: 1. The BOD has signified their strong desire for this project by lowering the quorum to a ridiculous low number of homeowner's votes ( 16% ) of total homeowners needed for approval. GET REAL. This is most assuredly a bum's rush over a large new amount of debt. The vote ( quorum ) is being rigged to assure passage of this ill conceived debt proposal which is just another way to spend money we don't have.

2. The BOD has signaled their intent to do NOTHING about the no lend list by asking for a second opinion because they did not like the consequences of the first opinion. What the board didn't like was the fact that the revenue shortfalls from the country club facilities pushed on the backs of DP homeowners is considered a commercial type risk which is not covered or permitted by a residential loan, so.. no more residential loans. The BOD knows that the only way for DP homeowners to get mortages is to eliminate the commercial type risks associated with the country club facilities, or in other words divest the HOA from these entities. The BOD is not willing to give up the country club facility so the result is homeowners will never have residential mortgages available to unlock their equities or sell their property. This is NOT in the best interests of DP homeowners nor an example of fiduciary responsibility required by the law.

3. We need to get our house in order before we take on new debt. The restaurant facility is not nor will ever be a viable concern as currently owned or operated. No restaurant can sustain a five or six month period with the majority of homeowners absent. This facility needs to be in other ownership to reach it's potential and to recapture the ability of DP homeowners to access their private equities with mortgages. As an additional perk we might end up with a great restaurant here at DP. There is no question in my opinion as to what is in the best interest of all DP homeowners. I think that continuing along our present road will likely invite legal action.

Anonymous

4/5/2022 10:41:48 am

Where are you getting this information? Is there any issue about mailing monthly newsletter? Financial-services-meetings-etc etc?

Leslie

4/5/2022 03:26:10 pm

No, anonymous. There is no newsletter that covers these issues. A few dedicated owners dig up the information because it's not easy. Keeping owners in the dark suits this Board. In the cloak of darkness and obfuscation, they can spend OUR money as they see fit for their personal legacy projects.

Joan

4/5/2022 08:34:12 pm

Truth Leslie... and we all know that Board tries to keep as much as possible privately discussed in Executive Session by tying it all in with "legal" matters regarding each and every issue so that they can keep it from the mass of the community.

Lisa

4/6/2022 07:14:58 am

Is this legal to keep information from homeowners?

Terry

4/6/2022 03:32:27 pm

Leslie is right on. We as homeowners are given incomplete facts intended to move us in the direction the BOD finds favorable. Example: Is the BOD motivated to do what is necessary to remediate the no lend situation by removing homeowners from the chain of title ( selling the restaurant) to eliminate commercial risks prohibited in residential loans and Fannie and Freddie. Answer: We shall see if the BOD will give up total control of the restaurant to salvage the ability of ALL homeowners to unlock their private home equity or will the BOD refuse to sell off the restaurant and ignore their fiduciary duty required under the law. My opinion is that the BOD will choose the latter direction and legal action will be necessary to restore homeowners rights. Hope I am mistaken but I doubt it.

Lisa

4/6/2022 07:11:47 am

Why can't we demand to receive information monthly? Tons of HOA's do ? Monthly I will add.

Frank Bailly link

4/6/2022 08:00:38 pm

It seems one of the criteria for this landscape proposal is water conservation. I , as well as 630 others in the complex occupy a condo. One of the ongoing problems with the back decks of the condos is that the size of the present decks are too small. It is always a problem , especially when entertaining and trying to accommodate enough people at your table without spilling onto the lawn area. If we allowed condo owners to expand another 10 feet into what is now grass we could lesson our watering and grass cutting area by approximately 250,000 square feet. Calculations as follows . 630 owners x 10 feet by 40 feet. And many of us would be more than happy to absorb the cost personally.

4/8/2022 12:16:13 pm

Agree with you Frank!!! I would be fine paying out of pocket to expand the patio (which BTW in the past, some homeowners were permitted to do).

Anonymous

4/23/2022 07:26:50 am

Sign YES for landscaping we will have another assessment added to our HOA payment. Another increase is that what you want or need?????

Michael Stark link

4/25/2022 05:28:29 pm

First and foremost, I think it would be a good idea to postpone this landscape revitalization project until we correct the Fannie Mae 'Do Not Lend' issue. This is a serious matter that must be dealt with first. Secondly, while I am not necessarily opposed 100% to the loan for the project, I would like to suggest other solutions be explored as a possible alternative for the loan before the Board signs the documents. As a former Board member in several other HOAs, I completely understand how the term "Special Assessments" provokes an angry reaction from everyone. Please hear me out first. What if there is a special assessment of MAYBE $500. every two years to fund the Landscape Revitalization project. No loans, no interest, NO INTEREST RATE RESET AFTER 7 1/2 years? It's just an example of a possible alternative. I have several concerns regarding the proposed loan, but the RESET is my biggest.
Some of the comments above have not taken into consideration the actual water supply issues the southwestern U.S. is facing. It's not just about the water bills. Maybe it's time we all start paying attention to the information out there regarding water supplies. It looks very grim for our future. I hope we don't wait until we don't have water to flush our toilets before people start taking this seriously.

Dave

4/26/2022 07:27:12 am

Michael, your post proves once again we have the wrong people running our affairs, particularly when we have talent like your own and others available.

People who think in terms of the community needs at-large, not their own personal wants first, The real and urgent needs of the community not the fanciful nice to have things when all other major and minor problems have been taken care of.

It appears, that at this moment, we only have one Board member who takes his oath of office as a fiduciary seriously.

Unfortunately, the Boards premature action in putting this project up for a vote have stopped the possibility of postponing it and by making it the focus of their attention
over much more serious problems, the 'Do Not Lend' issue for instance, go unattended.

We are left with no choice but to VOTE NO.

Anybody

4/26/2022 07:17:48 am

Water? What about the Disneyland project? 24 acre lagon breaking today at 10am???

Michael Stark link

4/26/2022 10:35:01 am

"Anybody", Two wrongs don't make a right. What does Disney have to do with DP? We can only regulate and be good stewards of our own back yard for future generations.

Lisa

4/30/2022 11:22:08 am

They only need 33% of votes. That's insane!!! Vote NO

MAGGIE HOOD

4/30/2022 02:28:49 pm

Here's the REALLY BIG ISSUE: This is a "SPECIAL ASSSESSMENT"!! They have crafted it very carefully, no doubt with legal help to specifically say "not a special assessment" to get around the REAL required quorum required for a special assessment which is 51% of the total owners voting, which would be 615 owners and 308 people would have to vote in favor. By NOT calling it a special assessment, they reduced the quorum to 33% of votes required - but of THAT - they only need a simple majority. Thus: 1206 units/owners - 33% is only 398 votes to constitute a quorum. Of the quorum only 199 votes IN FAVOR are required to pass this stupid "special assessment" that is" not really a special assessment". Therefore, just 199 owners out of 1206 owners can encumber ALL OF US with a $33 monthly dues increase - forever more AND that does not include the October dues increase which is sure to come. I'm sure they have already loaded the dice with their friends and they know they can get 199 votes. So that' why they crafted this so carefully, stating "NOT A SPECIAL ASSESSMENT.." But it IS!!! Note how low our reserves are - just $1.3 in reserves!!! Then at the board meeting yesterday it was revealed that when the figures for the "perimeter security system" were presented at last months board meeting, and they approved spending $110,000 for that, Ariel had neglected to include the actual labor to install - which was ANOTHER $51,000 - so that was approved in the blink of an eye! I really think we need to get some legal help to see if they really can change the quorum for something that is CLEARLY a special assessment. Why are we not screaming in a way that matters? It's so nice to see all of the people here, but the board is NOT listening cause they are gonna do what they want, and the hell with the rest of us. A 51% majority of homeowners would mean that of 1206 owners, 615 people would have to actually VOTE - and most people don't - so they wouldn't even have a quorum. So now they only need 398 people to even vote......this has to be illegal. If anyone knows more than me, feel free to enlighten. VOTE NO

Not Taken In

5/1/2022 12:17:23 pm

The latest attempted Con by the Board, now telling us not to worry about the $7.26 + million millstone the Board is trying to put around our collective neck.

They say:-

"This term sheet is largely the same as we have previously communicated, but we are pleased to announce that the terms will be locked in until after the homeowner vote is tabulated on June 6. This means homeowners can vote with a full understanding of the terms that will apply to the bank loan, if the project is approved."

Apart from an immediate increase in the loan rate first promised for the first 7.5 years
Nothing has changed.

The Board want you to trust their collective expertise. But, not a financial expert among them!

Go to any financial expert and they will tell you,
PAST PERFORMANCE IS NO GUIDE TO THE FUTURE!

The Board said:-
"so, this is not a material risk."
They are pushing this very hard, is someone getting paid for this?

Are we taken in by them?

Nothing has changed.

The reset formula is based on what is happening in the world at year 7.5 from now.
for a none essential project today. Is that a gamble?

Gambling with our HOA is NOT allowed by the Board.

Should a Board ask homeowners to gamble unnecessarily with their futures?

Would that be considered them exercising their fiduciary responsibilities?

Nothing has changed.
Still vote NO

Lisa

5/2/2022 06:26:55 am

I have talked to at least 99+ people who do NOT WANT THIS! I have been around getting signatures from homeowners to prove the people don't want this. The BOD stated they were useless. Is this how they operate on the homeowners behave? VOTE NO MORE!

Lisa

5/2/2022 06:28:26 am

Let's all vote now. NO

Judge

6/15/2022 07:45:15 am

Did anyone read the article about why we can't get F&F loans?

Your comment will be posted after it is approved.

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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