The Ballot: Do we have enough information to Make an informed Decision?

5/4/2022 11 Comments

The Ballot: Do we have enough information to Make an informed Decision?

The ballot sent out to all homeowners is a vote to allow the Board to take out a loan for $5 million. A follow up summary of the actual loan terms was published on Desert Princess Condo Communities.

A number of homeowners have contacted the Board to get a copy of the “Fixed Term sheet” that outlines all the details for the loan that we are being asked to vote on. The HOA has refused to release this information. How can homeowners make an informed decision on this vote without the facts?

For example:

Was this the only Loan available to us?
Was there an Request For Proposal from Multiple lenders?
What additional conditions and obligations are we committing to?
Can/Will the board be restricted from using these funds for other projects?
Will all the funds be available day one or will there be multiple distributions as the Landscape changes are completed?
What happens 7.5 years from now if the new interest rate is not competitive (can we pay off the loan without additional expenses?

Do we have any other financial obligations or operational restrictions during the next 15 years in order to meet the loan obligations?

The blog would like to know, Do we have enough information to Vote for the $5 million loan?

11 Comments

Michelle

5/4/2022 01:46:26 pm

The fact that homeowners have been denied access to the Loan Term Sheet by the Board says it all. Why? What in those loan terms are they afraid to disclose BEFORE we vote. I would urge the Board to release ALL the unsanitized terms now.

Sharon Wilson

5/4/2022 02:17:08 pm

I am not sure this loan is even important.
The FHA, Freddie and Fannie issue is the number one risk right now for the HOA and it needs to be addressed as such.
Regarding the loan for Landscape changes, I agree the adjustable loan requires much more thought. I would really like to hear the Boards actions to implement such projects after deep consideration of ending or lowering other costs. It seems there is continuous desire to have new projects, that I agree are nice, and some needed, however some projects need to be sunset to implement new programs, projects.
Especially in light of rapidly escalating costs, along with the increasing regulatory compliance issues that have to be addressed.

Dianne

5/4/2022 02:26:24 pm

After the term of the loan will our dues be reduced?

Trevor M

5/4/2022 10:08:17 pm

Great question Dianne, the simple answer is NO! In fact be prepared for another increase in October when our dues go up annually. My guess is many of us will not be at Desert Princess or alive in 15 years.

Patrick Reynolds

5/4/2022 03:57:59 pm

No, we do not have enough information. I inquired about getting any specific infomration about this loan, including the name of the lendor and was denied, that the Board does not disclose this information prior to entering into the agreement? Isn't this election's purpose to determine if this is a good agreeement?? Who is the Board working for? So we are being asked to rubber stamp a fixed loan that is, in fact, not a fixed loan, an anonymous lender (FDIC insured? we don't have the right to know any of this?), a conceptual plan with no details spelled out, a "preliminary budget" that was based on conceptual drawings that is over two years old and calculated in a totally different economy, no disclosure of how the money will be spent, either exclusively on the revitalizaiton project we are supposedly voting for or other projects not landscaping, and no project schedule?

A lot of just properly maintaining the existing landscape that is part of the existing maintenance budget by replacing the dead plants to fill in the holes seems a reasonable approach to take during rising interest rates, inflation, this unresolved loan freeze issue, reducing the quorum to 33%, and the uncertainty of all of the above. There is no legitimate reason this has to be rushed through before every aspect has been reviewed, vetted and resolved. "Figuring it out as we go" is not an answer and not what anyone voted for as to how this Board was to proceed with this large of a project, budget, and now what turns out to be a floating interest rate loan. Vote NO.

Michelle

5/5/2022 10:52:35 am

Doesn't it strike you as more than odd Patrick that your request for a copy of the Loan Term Sheet was declined, as the agreement hadn't been entered into as yet? On April 29th, the Board utilized Condo Communities to share with the community the news that a deal had been successfully negotiated and went on to describe what THEY deemed the KEY terms of interest to owners. It's interesting to note that this communique from them was in response to homeowner concerns about the bank loan.

This begs the question "What exactly could be in this proposal the Board won't share with us prior to the vote"? Certainly can't be something that would make owners more comfortable in voting yes or it would be released to us in its entirety, no?

Tony

5/4/2022 04:21:11 pm

A very sad waste of money. We should only take out a loan for a capital improvement, such as a structure that is needed or repaired. The grounds are beautiful, and any of the necessary landscape replacements should be found within our annual $11 million+ revenue. I would rather increase our dues $15 or $20 a month and pay as we go, rather than pay $2.3 million in interest. I don't see the urgency to complete the landscape renovations in 18 months.

Too many lies.

5/4/2022 05:35:59 pm

No, not information to vote for it, but we do have enough information to vote AGAINST it

Consider:-
Have the Board and CDAC told you everything? NO

Then what are they hiding from you?

They are hiding something; can that be good for you?

Have the Board and CDAC lied to you? Look at the ballot materials, in which they said:-
The loan will be a 15-year, fixed rate loan,

We now know it is Not a 15-year fixed rate loan.

They also lied when they said they wanted the loan for plants and landscaping,

We now know they will also spend the cash on "OTHER PROJECTS"

What other projects?

ONE LIE WOULD HAVE BEEN TOO MANY

HERE WE HAVE A PACK OF LIES and DECEIT.

WHICH TELLS US, THOSE THAT LIED TO US ARE UNTRUSTWORTHY

FOOL US ONCE, SHAME ON YOU, FOOL US TWICE, SHAME ON US.

VOTE NO to end the lies and deceit.

PMP

5/5/2022 05:48:10 am

I am one of many that don't trust the board. They are hiding something, so don't be surprised if the vote passes and we are hit with more dollars for the payback then they are currently stating. We all know if this happens the board will not take responsibility, they will simply say the homeowners voted this in.
I continue to ask myself the following questions about this project that we can't seem to get answers on.
What does it mean on the letter that we received that if the vote does not pass that the board will take other actions?
What are the terms of the loan and why can't we as the homeowners, that will be paying it back get the information we request. If you personally take out a loan you have the details before you sign and take possession of the money.
Did the board and the CDAC even look at trying to incorporate this into our current HOA fees?
Why does this have to be done in 18 months, and not phased out over time and paid for by current HOA fees.
Personally I think we have other issues that take precedence over the landscape revitalization.
My vote is NO! This board is a dictatorship and they don't look out for homeowners best interests, they spend more money getting quotes on patio expansion, fitness center remodel and getting the sand traps fixed. Lets take this wasted money and put it towards the revitalization, security and street repair.

Terry

5/5/2022 12:03:42 pm

The only way we as homeowners are going to be safe from all the misinformation coming at us from the board is to VOTE NO.

I don't trust this board to look out for what is in the best interests of DP homeowners. That is the only certainly I have about this whole mess. This board is confused about whose best interest they are duty bound to protect.

Terry

Lindsay

5/13/2022 07:25:48 am

My vote is NO.
They are not working for us HOMEOWNERS,
They are working for the Trusted Management company.

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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The Ballot: Do we have enough information to Make an informed Decision?

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