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The HOA Board has just approved monthly dues for the 2023/2024. The dues will be increased from $748 per month to $855 per month.
There is still additional work that can be done by the HOA Board and Management Trust to find additional opportunities to reduce expenses and increase revenues. Examples of opportunities:
The Blog would like to know your thoughts.
49 Comments
Charles Childress
7/30/2023 10:25:31 am
This is outrageous. What is the justification? We are now at the top of HOA fees in the Coachella Valley. These board members came in under the auspices that they would cut cost. That was total Bovine excrement. They must have severe consequences for this action including recall and removal.
Tom
7/30/2023 08:29:42 pm
They are not the highest in Coachella, I was paying a lot more in Rancho Mirage but I got A LOT MORE for my money and there was no waste and they paid the management company FAR less. This is insane amount for the services in return. They're hiding a lot of waste and BS by not being transparent.
Bert Brecht
7/30/2023 10:45:43 am
A lot of residents who spoke at the meeting Friday and were critical of the budget said that the insurance is not an item to be considered for expense reduction. I do not subscribe to this. My car and home insurance increased dramatically this year and I worked extensively with my agents to readjust coverage and I saved a lot of money. DP insurance should deffinately not be off he table. Insurance should only cover those things where a loss would be intolerable.
norman john lubke
7/30/2023 10:51:19 am
i would hope we are not heating all the pools during winter months....i would hope we are getting at least a 5% annual return on Reserve Funds (with US Govt backed short term Treasury Bills.....
Weebly
7/30/2023 03:37:10 pm
i would hope we are not heating all the pools during winter months....i would hope we are getting at least a 5% annual return on Reserve Funds (with US Govt backed short term Treasury Bills.....
lauren-michelle
8/13/2023 05:11:56 pm
I think the pools should be heated in the winter and not in the summer. Heating in the summer months is silly.
Ken Harris
7/30/2023 10:58:45 am
Passing that kind of an increase is BS
norman john lubke
7/30/2023 11:29:13 am
while no one likes cost increases...myself included....as a point of reference monthly HOA fee was $550/month in 2001....212 years later $855/month averages out to a $12/month annual increase.....or an average annual increase of about 2%......
lauren-michelle
8/13/2023 05:14:06 pm
Norman, that logic only works if you actually take into account a gradual increase! If it was $550/mo in 2001 and then $640 when I moved here in 2021 that's not bad at all. But what's terrifying is that I've only been here 2 and a half years and my dues have gone from $640 to now $855!!! Over $200 in increases in a 2 year span is incredibly alarming.
concerned homeowner
7/30/2023 11:41:06 am
The insurance was looked at diligently for months. There are some things in our control and others that are not. This is one for now that is not. We were told by the Board that if we do not have anymore major claims..the rates should drop again. But we need as a community to force the Board to look at everything else that is in our control .and that is not being done effectively. They have no incentive when we as a community only pay attention at the budget time.
Tom Rosa
7/30/2023 03:35:08 pm
I have been making cost saving recommendations for 20 years. They fall on deaf ears.
Tom
7/30/2023 08:38:05 pm
They do not listen or care. They are not open and honest. There is a lot of waste. Why don't we have solar heating on every pool? Or at a minimum solar covers? Why do they waste so much on landscaping and tree trimming. My other two properties NEVER trimm mature trees. We paid $450 per tree and then removed many of the trees that were trimmed. Insane amount of waste.
Ellen
7/30/2023 11:52:58 am
Listening carefully at the meeting did not provide much reassurance. In the end Russ gained my respect by giving us an explanation of the water pumping station (not sure that is the correct terminology) which addressed his concerns for needed replacement parts, etc and emphasized why we need a healthy reserve. It was a “transparent” conversation we all need to hear. People, we have no money! Something catastrophic happens we can not pay for it. This has to be the first priority and it isn’t going to happen overnight. What can happen is we get organized, form committees to figure out the best ways to increase income and make sure the Board is always transparent. Toward the end of the meeting Terry tried to explain the budget process - they don’t receive a draft of the budget until end of May or beginning of June, they all worked so hard on it, and how they live here too. I’m sorry, that was completely defensive, not a bit of empathy came through and where you live is not the point. There are methods, quarterly reports for one, to watch expenditures and anticipate upcoming increases. You may work hard but do you work effectively. If you want residents to speak without anger and frustration you need to be open with yourselves. The same comments are being addressed to you by numbers of people; lack of transparency, focusing on unnecessary projects, defensive comments, reserves, reserves, reserves. At some point you have to look at yourselves and think you might be part of the problem. Personally, I don’t think you have a lot of time to prove to us that you can do better. 7/30/2023 11:57:49 am
Has DP become a Time Share instead of a community?
MAGGIE HOOD
7/30/2023 02:53:14 pm
Frank, I just about screamed when Russ or someone stated "We need to preserve our property values". As a Full time Licensed Realtor for 34 years now, I can tell you one fact: HIGH HOA fees lower property values. And we can't get good loans here because they've turned this into a "commercial-type property" by comingling the Country Club with the DP residential community. I just learned that my homeowners dues went up substantially from $388 to over $600/year because Fannie and Freddie won't do loans in here, so IF the Country Club fails for any reason, we could potentially loose our homes. I'm still trying to learn more about this; I don't know the whole story. When people who are currently IN escrow learn of the new higher dues, I would venture to guess, some will cancel.
marietta mckeehan
7/31/2023 09:34:07 am
I actually did scream when I started to read the comments made here. Your comments about (preserving our property values) made me so angry because my property values have not changed much since I bought here in 1985. I doubt I could sell my condo for exactly what I paid for it in 1985. When people ask about the HOA dues here, they always say WOW. That's because it now means you really have 2 mortgages to pay and the second one (HOA) keeps increasing every year even when you have paid off the loan?????. I am still so angry, but don/t know what to do about it now!
Sally O’Shea
7/30/2023 12:04:10 pm
There were some very good ideas at the previous HOA meeting which the board members ignored! I really don’t understand this kind of behavior. Why do we have a guard at the Landau gate when there are no people coming through that gate during the summer months? There are so many other ways to cut expenses is absolutely ridiculous. We would sell, but no one’s buying. Shame on you HOA board.
Maggie
7/30/2023 02:47:06 pm
Sally, totally agree. WE DO NOT NEED A GUARD AT LANDAU GATE - vendors and guests and renters can use Vista Chino. But we need that gate for owners to access using transponder gate. That's 7 days a week x 52 weeks of someone's salary at $21 or more per hour. I'm sure that could be put towards repairs someplace.
Tom
7/30/2023 08:53:54 pm
Here are just the things we do know about:
Renee Thompson
7/30/2023 12:17:54 pm
The BOD members need to change their thinking from expansionist to maintenance. We need several years into the future that do not involve new projects of any kind. Yes, a new gym is nice and I used the old one several times a week. Was it drastically needed? No. Did the spa need help in its decor? Yes, but that project could wait. What other large projects could have waited? The tree project? The grass to sand project? Surely we have knowledgeable insurance people on property who could look at our policies to see where savings could be found. The increase in insurance costs is unacceptable! Perhaps, a new insurance company is needed. We need need the Board to think about maintenance of our beautiful property, not where money can be spent. Hold the line on costs. 7/30/2023 01:23:26 pm
We voted for unrealistic people! If you have any integrity as a board member you would have considered cutting cost first. Raising cost is simple for a person that does'nt take other people into consideration. Only unfeeling people take that avenue. Still do not understand 27 holes? Is it because the 1% want it? Especially keeping the claustrophobiic Lagos 9.
Frances May Carter
7/30/2023 02:24:33 pm
In 2017, I sold my beautiful 2200 sf. Colorado home with incredible gardens and bought a Desert Princess golf course condo with stunning mountain views. This resort was the closest product I could find that duplicated my Denver lifestyle and keep me within my budget. The Desert Princess is a luxury community for a reasonable price. I am a senior on a fixed income. I understand the reasons for the HOA monthly dues increase because I would be experiencing astronomical increases in the maintenance of my former home had I not moved. I applaud the board for the time and effort invested in finalizing the budget. The continued popularity of our community, ongoing modernization and future improvements will benefit all residents. HOA monthly dues will continue to increase each year. Some communities similar to the Desert Princess may have lower HOA monthly dues but they do have brown golf courses and reduced amenities. We residents will always be conflicted when dues increase, but I want to see the Desert Princess continue as a first-class resort.
MAGGIE HOOD
7/30/2023 02:41:13 pm
First of all, I was unable to arrive at 1:30 so I missed about an hour of comments, but I COMMEND all of you for showing up and making your voices heard.
Bern Tennis
7/30/2023 03:47:10 pm
Who voted which way? Every board member who voted to approve this should be the subject of recall and removal. These increases so far outstrip the rate of inflation that they could only be the result of rank incompetence by individual board members, who have only ever pretended to listen to owners before proceeding to do exactly what their corrupt selves want to do. Get rid of them through a very effective recall or as the guilty parties come up for re-election, vote for ANY opponent running against them - there has to be real and visible adverse consequences to bring this ongoing fraud to an end. No bid contracts have to be made illegal in our CC&R's also ...
Cathy
7/30/2023 07:54:57 pm
The vote was 6-1 in favor of the budget. Director Bergstrom voted against the budget, his term is up in February and he isn’t eligible to run again. Treasurer Bob Mangold voted for the budget. His term is up but he can run for reelection. The best part of the meeting was at the end when Russ, Terry and Ernie told all the homeowners who were left, what a good job they all did with the budget. NOT! Terry was her usual self and insulted all the homeowners who were no longer in attendance.
Melissa
7/30/2023 03:51:37 pm
I have been making cost saving recommendations for 20 years. They fall on deaf ears.
Melissa
7/30/2023 04:03:53 pm
Gilbert Caldwell
7/30/2023 05:50:27 pm
I don't understand why they hold these meetings. This BOD ignores anything the homeowners say. We need to recall this entire bunch.
Tom
7/30/2023 08:27:14 pm
They did exactly what we said they would do. They didn't listen. They didn't care. They were not transparent and did not produce a budget with detailed accounting. We need to dissolve this HOA or next year they will give raises to management company, continue to spend millions on trees and other idiot wasteful activities. We need to get rid of the board and management company immediately. They will continue to pillage and next year the fees will be $1000, then $1200 in 2025, then $1500 in 2026...
Barbara Kitzman
7/31/2023 04:05:15 am
I think the board is doing an excellent job. No one like to see price increases but everything has gone up and to maintain our investment it's critical we continue to keep the amenities updated and the grounds beautiful.
Tom Rosa
7/31/2023 08:58:21 am
Barbara, the grounds are NOT beautiful, The amenities are NOT updated. All we are asking for is basic business acumen. As the HOA fee rises, our property values decrease. We are outpacing the rest of the valley in HOA fees.
John Godwin
7/31/2023 07:00:25 am
There is no question insurance costs have increased at least 25% and even higher if one had a claim . We live full time in Tennessee, both State Farm and Framers attempting to have all policy holders pay for their National issues have raised rates in all areas .
Recall Now
7/31/2023 12:25:19 pm
John - I wrote them an email and asked this exact same thing. They arrogantly and ignorantly said it was not possible because they need the $ to continue to operate the property after this year. They also arrogantly and ignorantly and possibly illegally said this won't affect the property values because there is no property that can compare apples to apples to DP. They did not do a comp search and do not understand real estate at all. In addition, news flash to everybody - the Board does not do the budget - the HOA property management does. This Board is being manipulated by the PM company.
Maggie
8/3/2023 03:36:04 am
There were two garage fires and possibly damage to the adjoining condos that were turned into an insurance claim. I do not know how much was paid. I heard some of the new repairs actually had to be torn out and re-done, because it wasn't done correctly and didn't pass city inspection.....anyone know more about this? If something like this happened, WHO was in charge and WHY was there no oversight? Then I heard there were two vehicle accidents, which resulted in claims against the HOA that were paid out. (again, don't know for how much) Can anyone shed any light on this? THOSE CLAIMS are supposedly WHY our insurance doubled. Shouldn't our attorney have advised management and the BOD of those ramifications, and shouldn't they have come up with some kind of strategy to avoid having to put in insurance claims? Isn't that Management's and our Attorney's job to know this stuff?
Joseph Spillone
7/31/2023 08:03:43 am
I'm a recent home owner and Real Estate Broker for over 20 years. I confirm that the HOA fee's will decrease the home values. People looking to buy will avoid the higher fee's and anyone who is selling now good luck. This is now one of the highest in the valley. The only thing people will visit for is CHEAP golf.
Debbie Darshan
7/31/2023 09:21:00 am
Thank you for this blog. And thanks to all who attend the meetings, speak up and report back. I'm not able to attend meetings due to work and childcare constraints on my time. I understand small increases in HOA fees due to rising costs but these large increases do not seem to be that. I've been emailing the board requesting details on the increases but Terri has not been very forthcoming. For example, I want to know if there are any discretionary expenses, such as the $70k sound system, that are included in the budget detail. It sounds like this could've been deferred and a lot less expensive. I would like to know where we can see the competitive bids for projects. In my experience, in accounting, I've observed how people can manipulate the bid process to award contracts to their preferred vendor and receive a kickback. I'm not saying this is what is happening but $70k for a sound system seems outrageous.
Christine Shipman
7/31/2023 11:17:48 am
How will monetize? Do you have a 3/5/10 year plan? And if so what does it look like? Are you reviewing costs monthly? How do you hold your service contract ? How do you justify un-agreed cost increase? It was stated at the meeting every increase is out of your control and the only thing you can control are the heating of the pools. It appears this decision is difficult for the board to make I propose we homeowners take it out of your hands and put it to a vote from the homeowners Last but not least who is responsible for the cost of the $70,000 for a sound system? Homeowners?
norman john lubke
7/31/2023 02:52:23 pm
i am assuming the BOD/Treasurer is on to this....current Treasury Bill rates run 4-5%....short term...with $4,000,000 + in reserves.....shud be rolling $250,000 a month into one year bills....this would use only $3,000,000.....would have $250,000 maturing each month....annualized return would be over $150,000 a year....depending on scheduled use of reserve funds could probably have more than $3,000,000 invested.....laddering $4,000,000 would currently produce over $200,000 a year....certainly an amount that would enhance reserves.....all this with no risk.....
Tom
7/31/2023 07:12:54 pm
I invested a good deal of the day in conversation with four of my previous HOAs that served the communities I own(ed) homes in. I was amazed to hear that one community didn't have a management firm the other three did but they have no office, not employees. The fees are simple. The amenities, services, maintenance is all very similar and the size of the Desert Princess community (one is in Rancho Mirage). To the best of my knowledge, I now understand that the average monthly management fee is roughly $18 per unit, per month. Simple math $18 X 1163 unites = $20,934 per month, or $251,208 annually. This is about the same as what we pay just one of the people in our management company? We also have that huge office, parking area, and several other "employees" that we are paying but I do not understand for what. I have contacted them four times with four asks and each time was basically, "No!". We can have a recording on a voicemal system that says "No!" for about $1 per month. :-) Desert Princess HOA Board are notorious for never putting ANYTHING out to bid, huge entry landscaping project, the CVWD water conservation landscaping ($670k), tree trimming, tree removal, tree planting, dirt removal, audio systems in lounge that is never used, remodeling of the spa and fitness center that is never used, extending a patio of a restaurant that is losing money, we need to put our management out for bid and then assure that EVERY SINGLE project has a minimum of THREE quotes.
RECALL NOW
8/1/2023 09:08:25 am
Did You all see the CYA email the HOA President sent out? Among some virtue signally projects that are completely unnecessary now in a recession such as emissions-free new vehicles, converting turf to desertscape, providing EV charging capability in the condo areas and rewiring the condo garages (I WOULD LIKE TO SEE THEIR BREAK EVEN ANAYSIS ON THESE PROJECTS) – all of these one time WOKE projects could have been done as a one time assessment and not raise the dues but now they have the money to continue to play with. And here is the kicker - Inflationary increases in compensation to retain staff. HMMM. Did you put the management contract out to bid to determine this??
Neal Glatman
8/1/2023 09:38:56 am
I have been a homeowner for 20 years at the Desert Princess. Over this period I have seen many increases. This increase to many homeowners on fixed income is devastating.
Tom
8/1/2023 12:06:43 pm
And so it begins... see a few pending sales have now fallen thru in DP and those units are back on the market. Have to believe the disclosure around the HOA fees, lack of reserves, mismanagement and losses, all contributed to those sales falling through. Hope it is not a race to bottom. Man, what a difference a board and a couple years can make!
George
8/1/2023 01:45:00 pm
Did it ever occur to the Board to self fund the fire damage instead of claiming insurance reimbursement which drove our rates through the roof. If the Board believes our rates will drop in a few years, they're dreaming in technicolor. This is one of many nuances they have kicked to the curb with every other resident suggestion proffered.
RECALL NOW
8/1/2023 05:01:17 pm
They are not this smart. Did they do a break-even analysis on funding the project ourselves VS insurance rate increases?? They could have even done a special assessment for this expense instead of raising our dues and the insurance rates. This Board is not smart at all with budgeting and they put 3rd party interests in front of the homeowners.
Terry Albright
8/2/2023 02:01:19 pm
All the attention to recalling the BOD is useless. HOA boards are notorious for their lack of skills and business acumen. They are mostly people who get a kick out of spending other people's money, or get a kick out of talking down to others. Get rid of the current board and you will likely get a new board similar to the former.
lauren-michelle
8/13/2023 05:20:01 pm
I'm curious how many people are looking to sell after this increase. I know I am.
Dan
9/16/2023 11:36:11 am
Can't wait to leave. They can't borrow from a bank, Freddy Mae. So they will need cash to buy in here. Who's going to pay the outrageous HOA ? 8/13/2023 07:14:00 pm
I make a motion to hire an independent accounting firm to do an in depth audit of the HOA finances and to submit appropriate recommendations. The contract should be competitive with open bids and awarded to the most reasonable proposal. 9/16/2023 05:09:29 pm
Couldn’t help noticing the large numbers of FOR SALE signs at the Vista Chino gate. Does this represent the tip of a Desert Princess-exit trend? Not surprised after the astronomic new HOA fees. M Your comment will be posted after it is approved.
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