WHAT IS REALLY GOING ON WITH NEXT YEAR’S ALL-TIME HIGH HOA ASSESSMENT?

8/2/2022 71 Comments

WHAT IS REALLY GOING ON WITH NEXT YEAR’S ALL-TIME HIGH HOA ASSESSMENT?

AT ITS JULY 29, 2022 MEETING, THE DESERT PRINCESS HOA BOARD OF DIRECTORS
APPROVED (BY A 5-2 VOTE) THE FINAL BUDGET FOR FISCAL YEAR 2022-2023 WHICH BEGINS
ON OCTOBER 1, 2022. THE APPROVED BUDGET CALLS FOR AN INCREASE IN THE MONTHLY
ASSESSMENT OF $38 FOR EACH DP UNIT, RESULTING IN A TOTAL MONTHLY ASSESSMENT OF
$748. THE TOTAL INCREASE AMOUNTS TO $456 ANNUALLY FOR EACH UNIT OR A TOTAL OF
$549,936 FOR THE 1206 UNITS IN DP. MEANWHILE THE BOARD TREASURER IS PROJECTING
A SURPLUS OF $800,000 TO $900,000 IN OPERATING FUNDS AT THE END OF THIS FISCAL YEAR
(SEPTEMBER 30, 2022).

-WHY IS THE BOARD HOLDING BACK HUNDREDS OF THOUSANDS OF DOLLARS AS “PLAY
MONEY” INSTEAD OF USING THE SURPLUS TO OFFSET SOME OR ALL OF THE $38 PER MONTH
INCREASE?

-WHY WAS THE $15 MILLION BUDGET APPROVED ON THE BASIS OF THE TREASURER’S ORAL
RECOMMENDATION WITH NO FINAL PROPOSED DOCUMENT AVAILABLE FOR REVIEW BY BOARD
MEMBERS PRIOR TO THE VOTE?

-IS THE REAL PURPOSE OF WITHHOLDING THE $800,000-$900,000 SURPLUS TO FINANCE THE
BOARD’S SPECIAL “VANITY” PROJECTS OUTSIDE OF THE BUDGET?

THE HOA IS OBLIGATED TO PROVIDE A SUMMARY OF THE BUDGET IN THE ANNUAL MAILING
IN AUGUST. EACH HOMEOWNER SHOULD REQUEST A COMPLETE COPY OF THE BUDGET FROM
THE HOA TO DETERMINE WHERE YOUR MONEY IS ACTUALLY GOING. AS A MEMBER OF THE
ASSOCIATION, YOU HAVE A RIGHT TO KNOW.

THE BLOG WOULD YOUR THOUGHTS

71 Comments

Roy's Boy

8/3/2022 08:03:33 am

It’s “auction time” at the Desert Princess AGAIN!
An open homeowners Board of Directors meeting was held via Zoom and In Person on Friday, July 29th. The directors in attendance, both virtually and in person, were asked to approve a The Annual Budget for the upcoming 2022-2023 fiscal year.
A draft budget had been submitted to the directors by the Finance Advisory Committee and the board treasurer during the June meeting. This draft had been assembled during several “closed-to-homeowners” FAC meetings prior to the June board meeting.
So there was NO final budget provided for the directors to approve during the July meeting.
Instead an “auction” was held.
The treasurer explained to the “options” to the board members
1. A monthly dues’ increase of $41 was proposed for “business as usual”.
2. Not over seeding the Cielo and Vista rough would result in a $38 increase.
3. No annual flowers and no rough over seeding - $35 increase.
4. No watering the driving range, annual flowers nor rough over seeding - $34.
Keep in mind that only the board treasurer and perhaps the president had seen the final budget, but the entire board was asked to approve this budget with one of the four options presented without seeing the final proposed version.
In earlier revelations, we learned that a test of using CVWD water versus our well water for irrigation for a month resulted in a $65,000 monthly increase in our water bill with CVWD,
And, oh, the board granted a 5% raise to O’Connell, our landscape maintenance entity, and $100,000 to a vender to reroute the exhaust fans in the Clubhouse kitchens.
It was also revealed that $900.000 over the past decade has been withheld from Operations and for every $100,000 of this unused amount returned to the homeowners could result in $7 less in each homeowners’ monthly dues this year.
Keep in mind the $900,000 is above and beyond the approved budget and is being reserved without actually being committed to our Reserve Fund.
But what about the budget?
After discussion, five of the seven board members voted for the $38 increase and rejected out of hand any refund of the $900,000 to the homeowners. The two board members who voted “no” requested a copy of the proposed budget for them to review prior to making a decision. The other five board members chose to deny the need to see a final budge and voted “yes” blindly.
Yes, that was the way it was at the “auction”…going once, going twice, GONE!
And you are paying for it because five of the board members you elected chose not to honor their fiduciary to you and the community.

Caroline M

8/3/2022 05:03:04 pm

Forget the annual flowers and stick with the overseeding. You get more bang for your buck. Most of those flowers are dead in a week.

It's clear that the board wanted their $33 a month from us no matter what and they got it.

Maggie Hood

8/4/2022 10:38:28 pm

Yeah- approving a huge increase WITHOUT EVEN
SEEING THE BUDGET!!!! Plus everything else you say! Agree agree agree. I had my first run in with this board in 2020 in the middle of COVID having lived here for five months. I have watched their antics now for two years. Maybe even their Canadian buddies will vote against more of the clones next election- thank goodness some of them woke up
And decided not to vote for that 7 million dollar waste of our funds. Maybe about 100 of us show up at the next meeting and refuse to let them conduct the meeting till they agree to reduce our dues. And they plan to remove ALL the fruit “and maybe have a fruit grove In one corner or the property. Just inane ideas. I didn’t sign up for this BS

David

8/3/2022 08:38:20 am

This is uncalled for!!!! Everyone is struggling with inflation. Food.Gas . HOA. I bet their sitting pretty nice on our dime. STOP ✋️

Dr. Donna Dudley

8/3/2022 08:44:12 am

Unbelievable! How can assessments continue to increase? At some point, the increases should be projected to address costs over a 3-5 year period. What about budget projections and planning?. The continued rise in HOA costs is unacceptable.

Michel

8/3/2022 08:45:23 am

Why ? Hello people inflation , gas , food, interest inflation. Are they trying to fail us? Price us so high that everyone has to leave? WHY ? I bet a million dollars their sitting pretty with our money? Managementtrust.com

Marianne Thomas

8/3/2022 08:49:22 am

It never ends.

Tom Rosa

8/3/2022 09:34:44 am

Wash Rinse Repeat This has been my mantra regarding the Management Trust and our insubordinate BOD. A Fiduciary is supposed to protect the interest of others money. We elect our board and give them our trust only to be dictated to like children. Our BOD approved a new budget which increases the HOA fee by $38. Once again no consideration of ways to cut expenses to absorb this increase. NO NO the Management Trust advises this do nothing board to just pass it along. They increased the contract to O'Connell by $100K and yet the place has never looked shabbier. So we don't evaluate the performance of our vendors we just rubber stamp an increase because it's the path of least resistance. Look we have been on this property for 20+ years so my comments are informed. Yet violations are being handed out like circus tickets. Compliant dues paying homeowners are being singled out for minor infractions. (garage door painting) I think we need a community meeting to discuss what's going on. This place is taking a turn for the worst. Sadly we ALL just sit back and take it. NO MORE.
This valley is not full of the best and brightest. So lets consider the Management Trust is a haven for mediocrity. We should throw that bunch out also. Has an yone had a good professional interaction with any of those humans I for one have not.

Michelle Simson

8/3/2022 11:19:47 am

Well said Tony. To recap, the two Board members who even saw the budget before the forced vote on Friday were the President who, less than a year ago, was the subject of a sole recall ballot by the community AND a Treasurer who was elected to a THIRD term, in violation of the spirit of the Desert Princess CC&Rs.

To Gail Wilson's point, it's sad we have 3 Board members who never fail to fall lockstep into line with a President who has publicly demonstrated his contempt for any owner who dare challenge or disagree with his authority. Had a mere 30 owners voted to show him the door instead of supporting his regime when given the opportunity, our community would be on a decidedly more positive trajectory.

8/3/2022 11:58:30 am

Agree!!!! A community meeting is needed. I think perhaps, too many people do not pay attention to what is going on or they believe the....hmmmmm...alternative facts (or lack of any information) that is provided. A few things come to mind for me: they are still mad that their $7 million palm tree initiative that was voted down handily, and the golf course and restaurant shortfall that they seem to be ok with our HOA dues funding (as they have done NOTHING to fix that broken mess). But the real question is WHY? Why would you want the golf course and the restaurant to lose money every year? It is certainly not because it CAN'T be fixed, so it must be because they WON'T fix it and if they WON'T fix it, I am back to WHY THE HECK NOT?????? P.S. input appreciated - these are not rherotical questions.

Mary Maloney

8/4/2022 11:36:34 am

CB, they don't want to fix the golf course and the restaurant mess because the "inner club" wants this to operate as a private club at the expense of the homeowners, period. Otherwise they would be fixing our structure to change our HOA budgets so people can actually get loans in here. THEY want to keep their locked in tee times, doubles at the price of singles at the bar, all at the expense of the homeowners and the HOA dues. This is not about business and running an actual for profit business, they don't want "outsiders", the public, taking their tee times or crowding their BROWN restaurant. THEY like it just as it is. So charge every homeowner more to keep the status quo.

Lynn

8/3/2022 09:38:31 am

Why is an annual budget not approved by the owners ?? It's our money...!! As an observation, in Canada, the Property Management Companies or, if not applicable, the Council (Board) is obligated to send out an annual budget 30 days before the Annual General Meeting for a review by the owners and then it is voted on at the meeting by ALL owners (in person, via proxy, or ZOOM). The budget has to be approved by 50%+1 and if it doesn't pass, the Council (Board) has to go back to the drawing board and re-do the budget based on the owners' input which is to be submitted at a new AGM within 30 days. This process allows ALL owners the right to vote on what our money is being used for.....and its certainly not left at the discretion of 7 Council (Board) members. Perhaps, this fool-proof practice is something we all should be considering for the Desert Princess Annual General Meetings. We can submit a resolution to change the
existing Bylaws to allow for this type of voting with regard to BUDGETS which affect us all !! Having sat on several Councils (Boards), I have never heard of budgets being approved by anyone other than the owners which, of course, includes Board members.....DISGRACEFUL that this Board does not have any democracy principles when it relates to our $. Power to ALL Owners and NOT just a select 7-member Board ! We elect those owners to the Board and expect them to work for us....not against us. I'm sure if there was an ownership vote, this budget would have been easily turned down. Stop wasting our $ removing 2,000 trees !!

Gail Wilson

8/3/2022 09:40:55 am

I was at the monthly open HOA and Country Club meetings on Friday, July 29th. This increase is a done deal...there will be no opportunity for homeowners to review it before the board votes on it. The bote happened last Friday in the open HOA meeting. The dues increase was originally proposed to be a $41 increase but the board settled on $38. They did not have a copy of the final budget in the 7 board members' meeting packages so no review was able to be done by any board member voting. They had to take the treasurer's, Russ Holowachuk's, word on what was included and the math involved in a $15M budget that impacts us all without seeing a tangible copy of the final budget on which they were all voting. (Of course, we homeowners are not permitted to see the budget until after it has been accepted and voted on by the board.)

Objections from 2 board members, Bill Bergstrom and Martin Backstrom, were raised about the lack of a final budget to review before voting on it, but the president, Peter Webb, VP Terri Swartz, and treasurer, Russ Holowachuk pushed for the vote and the other two board members, Bob Mangold and Mark Brown fell in line as they are expected to do. Technically the president should have asked for a motion to table the vote until all board members had the opportunity to review the final proposed budget and then a special meeting should have been called for this week to vote. But that didn't happen and only Bill and Martin had the guts to vote "nay"...for which they both will pay, I am sure, in Exec session meetings and otherwise for not "presenting a unified front" in the open meeting.

A majority of the Desert Princess homeowners who chose to vote in our various board of directors elections over the past six to seven years elected these 7 people to represent the interests of all 1206 homeowners. And this is what we get...only 2 people who want to follow the rules and do their fiduciary duty for the homeowners they represent.

For those of you who are looking to collect proxy votes from your fellow homeowners, our CC&Rs do not permit proxy votes of any sort. Also, homeowners do not get to vote on an annual dues increase as well as many other things. Remember...we elect a board of 7 people to do that for us.

This board let the Finance Advisory Committee handle the budget. At least 3 people on that committee should step down and some new blood with better qualifications and fresh ideas should be appointed to that committee. Most didn't even get involved and certainly didn't review a final version of the budget because there was no final budget to review...just the treasurer's convoluted and confusing explanations of his four "options". The budget has no new revenue streams included because no one on the board with the exception of Bill Bergstrom and maybe Martin Backstrom--I can only hope--or the Finance Advisory Committee thinks we need new revenue streams because we have 1206 homeowners who are our revenue stream. It's just the same old story...tax and spend. And we, the homeowners are their "bank". Nowhere was it mentioned that new revenue was a part of the budget but they were quick to approve and tout $1.6M in capital expenditures for this upcoming fiscal year.

So it is what it is and we are never going to get out from under this tax and spend shroud until we get a new management company who realistically knows how to run a business and does not just rubber stamp whatever the board wants. Until we all wise up and elect a board who has the community's best interests as a whole in mind and not just what is best for the golf course or restaurant, we are going to be writing blank checks for a long time to come and will see nothing for the money we are spending.

Please attend the next meeting either in person in the Masters Lounge or via Zoom. Let these people who work for us know we are not happy with their performance.

Coming up next is a $500,000 expenditure to "refresh and remodel" the Fitness Center for the 18 people a day who use it. The Fitness Center does not generate any income for the organization. Remember the $500,000 "remodel and refresh" of the restaurant and club lobby that was quickly pushed through a few years ago when Roxy Bardwell was the general manager? It ended up looking like a bad remodel of an assisted living dining and activities room...and we are still living with it.

It's time to start running this place like a business with qualified professionals at the helm. No longer should the homeowners be considered our only source of income. We are not the Bank of Desert Princess Homeowners!

Let's hear your voices in the August meeting!! But more importantly, I hope we will hear your voices in the February 2023 board election when it's time to count the votes for the two board seats that will be up for grabs.

See you at the open HOA and Country Club meetings on Friday, August 26th at 1:30pm in the Masters Lounge and on Zoom..

Dianne Arevalo

8/3/2022 03:58:18 pm

It sounds exactly like, "We have to pass the bill to find out what's in it". And the performance level is exactly the same also, as I'm sure the approval rating is likewise. Nothing for the board to boast about.

Donna

8/3/2022 09:44:16 am

This is so frustrating! Constantly hearing that the board is doing sneaky things and not considering how much folks are struggling and the financial future for the US is bleak right now. We just had an increase of monthly dues…. How much more can the squeeze out of us. Very disappointing.

Ted

8/3/2022 10:02:08 am

You elect morons.

And somehow you think they will do Non-moronic thing???

30 years of incompetence and counting.

You have no one to blame but yourself.

Lynn

8/3/2022 05:20:31 pm

We certainly DID NOT vote for these morons but that's democracy at its finest - the few of us are out-numbered by the morons who think the Board works for them. Seriously, the Board is NOT working for you as evidenced by the continual spending and annual increases we are all powerless to prevent. We need a Community COMMITTEE Meeting to ensure our voices are heard and this Committee should have access to all monthly financial statements for review and input to the Board about many dissatisfactions which are being expressed by the majority. The results of the recent vote regarding the $15 MILLION expense for landscaping upgrades should give the Board an indication that owners are NOT happy with their absurd spending projects. Who, in their right mind, spends $8 million on solar panels for parking at the clubhouse.....is that for the good of all - I think not !! We are a community, not a dictatorship.
Time for new pro-active and community - minded owners on the Board...NOT those who are self-serving. It's not ALL FOR ONE in a community - it's ONE FOR ALL. Time for a new slate of Board members who understand financial diligence and not those who come up with unproductive and wasteful spending of ALL our money.

Dolores

8/3/2022 10:32:58 am

Why would they give the landscaping company a raise? Often the work performed is done halfway and you have to call them to return, otherwise the job is poorly done. In the villa section, there is no grass in most yards and very few plants, at least in my yard, I personally feel I’m overpaying for the little I receive for my HOA dues. Unless more owners complain, the HOA will gradually take away more of the rights we have in determining some of the costs we incur living here at Desert Princess. Even though we as members have voted for the board members to represent us in these decisions, we need to evaluate their actions and form a committee to review, if what they do financially is in the best interest of our community as a whole. In these inflationary times, maybe we need to get more bids from individuals providing services instead of just renewing contracts.

Michelle

8/4/2022 04:04:41 pm

Dolores, a 5% raise to a company that massacred my shrubs that of course now rest in peace, but unbelievably ALSO took their whipper-snippers to an artificial planter on my patio defies reason. Yes, the HOA paid to replace my faux plant, but it plays to the lack of judgment Management Trust exhibits in their contract hires for our community..

Mike

8/3/2022 10:59:01 am

Vote stupid you get stupid

Mary Maloney

8/3/2022 11:01:59 am

We are on a slippery slope to becoming the Desperate Princess once again. This is the 6th increase in the last 5 years. Agents in the valley don't even want to "touch the Desert Princess" we are quickly becoming a negative for buyers with our "cash only" condos and high HOA when our facilities as Gail said look like an assisted living facility. We thought the Desert Princess was on the rise when we purchased in 2017 and I have brought many clients to the resort and now I have clients that "just want out" due to the negligence of this BOD. You vote them in, don't complain.

Tony

8/3/2022 11:02:12 am

Very disappointing. They should hold the existing fees for one year and manage to that budget. Then we can evaluate the impact. I am very concerned about the $1.6 million capital plan with no mention of what it involves.

Gracie Roy

8/3/2022 11:16:05 am

So what do we do about this? How do the masses control the few?

Michelle Dupar

8/3/2022 11:19:48 am

Really? Another increase? The 8th one since 2017. This is ludicrous! The place is not falling apart. What do you need more money for?

Berns

8/3/2022 11:26:08 am

My feeling is that the board did not get their way when we failed to pass the loan option to beautify the grounds. I said at the time that there would be payback if we did not pass their loan project of $5 million. So what, we were going to pay $35 a month more for the loan, and now another $38 for HOA expenditures. There’s something rotten in Denmark!

Leslie

8/3/2022 01:44:54 pm

We knew, without doubt, there would be retribution to the owners, for voting down the Board sanctioned $5M borrowed money "plant swap",but this is beyond the pale.. The $900,000.00 cash surplus is the Board's personal savings account, funded by OUR dues to carry out what the homeowners resoundingly voted down.

Their "dubious"survey to renovate the gym was a joke. We still have no idea how many owners actually use the facility .....the Board never did the fiduciary homework to determine that elementary fact, before committing $30,000.00 to obtain plans for the renovation.The survey sent to owners on this issue was the weakest an organization could produce as a mandate to spend a half a million dollars of our money..The results of THAT survey was delivered VERBALLY by Charlie Moore, the DP tennis pro, who , in a nutshell, stated the result was "positive".....um, what the heck does that mean? What does our tennis pro have to gain by enhancing the gym?. He's the only one providing input before the Board's decision to spend OUR money.

Interestingly enough, prior to the Board voting to spend money to renovate the gym, and fund their vanity projects .Our Treasurer successfully transferred $750,000.00 transfer from our surplus, to our reserve fund to the relief of owners.

That transfer however was spent during the same March meeting to accommodate what the Board wants, NOT what we need.

Many members of this Board NEVER fail to disappoint and shirk their fiduciaries in favor of their personal vanity projects. ENOUGH IS ENOUGH!!!

Kim

8/3/2022 02:00:07 pm

We only have ourselves to blame. The definition of STUPID is electing " golf country clubbers* to our Board who care more about their of course than the interests of entire community and expecting a different outcome.

Mr.change

8/4/2022 11:29:48 pm

What do you me golf course they spent all that time and money and still looks like crap, now they want to remove all the trees

David

8/3/2022 03:05:42 pm

Let the truth be told. We are a resort community. That is why Fannie Mae & Freddie will NOT GIVE A LOAN. Bottom line they want full time residents out so this can become a DESERT PRINCESS RESORT.

Mary Maloney

8/5/2022 11:35:32 am

To the contrary David, in my opinion, this BOD want short term rentals and ALL rentals out based on their continued squeezing of the guidelines lead by Terri Swartz. NO new blood on committees, all the same little "inner circle". They want their private club amenities at the cost of residents. If that's what they want there are PLENTY of places to live in the valley with over $1200 a month dues so no "outsiders" come in. We need guests to come here and spend their money at our facilities to keep our HOA down. YES, we are built as a resort and that is NOT going away. So until those that want to live in a private community come to grips with that and do what is necessary to make this a thriving resort community, we will continue to face rising HOA fees to pay for their vanity projects.

Judge

8/3/2022 03:09:17 pm

They will make a lot more money from holiday residence. " Resort " not Desert Princess country club. The hotel is also a way for the managementtrust.com to increase revenue.

Terry

8/3/2022 04:38:52 pm

The $38 per month increase won't break us, but the stupidity, ignorance, lack of respect, and downright unlawful behavior by our "leadership" is just too much to put up with. Board of director's come and go but this latest board is the worst we have seen in the ten years we have been here. They can't stop spending our money on things that have a zero per cent return on investment, such as the $500,00 for the fitness center that will return nothing on a expenditure of half a million dollars. Our money is going down a black hole to the tune of almost half a million dollars a year towards an ever failing restaurant. The lack of mortages at DP is a direct result of the BOD and Management Trust ignoring the issue and warnings until we now no longer have mortages. This will destroy the home market here at DP over time.

Unless we as homeowners, with legal assistance, can find a way to regain mortgages here at DP, all that is left is to find a way out of this mess, and out of Desert Princess, hopefully without suffering large financial losses. Very sad but DP is on a downward spiral that is clear to see if you are paying attention.

Randy

8/3/2022 07:52:25 pm

As a homeowner who voted for most of the people on the current board, I am furious, livid and fuming on what I saw at the last board meeting. Directors Martin Backstrom and Bill Bergstrom both tried to have the HOA dues decreased from $38. Asking to put $100K in the reserves so our fees would be less. Thank you both for your efforts.

I am very disappointed in Directors Bob Mangold and Mark Brown. Neither of them spoke up or supported that the HOA dues should be lower. Must be nice to have money in your pockets to burn. They act like bobble heads when it comes to voting on anything at the board meetings. What the 3 stooges (Peter Webb, Russ Holowachuk and Terri Swartz) want and say, they nod and agree. The only time Bob speaks or makes a motion is when it is about the golf course. Mark is spending money on cutting down all our citrus trees and supporting the $400K upgrade to the fitness center. Why would he care about citrus trees, he lives part time in a villa on the golf course?

Yes, I voted these homeowners in to be part of the Desert Princess Board of Directors. I also recall during each of their campaigns telling us how they would
always put the community first”, “be fair minded”, “respect everyone’s view”, “represent everyone and making decisions in the best interest of the community”. Lies, lies and more lies!! Actions speak louder than words!

8/4/2022 02:31:15 pm

And we will be in for more of the same come February (I believe) when autocrat Webb's term comes to an end and they finagle a way to have Terry "I am afraid for my life" Swartz takes his place. A community meeting is imperative. Our fees climb closer and closer to $1,000 a month as we sit on the DO NOT LEND list, fruit trees disappear, $500K for the gym "upgrade" (as Terry mentioned, brings in $0 so no ROI - return on investment), the black holes AKA golf course and restaurant that our fees fund...the recall did not work and while it beats me why, I think people see things a bit clearer now...COMMUNITY MEETING, LEGAL REPRESENTATION & RECALL - all in order (IMHO). And Mgmt Trust...overpaid and underworked....

Mary Maloney

8/5/2022 11:36:52 am

It all seriously makes me want to sell and get the hell of DP!

A Proud DP Resident

8/6/2022 08:35:10 am

How about Peter Webb and his cronies on the Board and his cronies on all the committees sell and get the hell out of Desert Princess. Why should we all have to leave just because of their perpetual insanity and incompetence?

Realist

8/3/2022 08:09:15 pm

The continuing insanity displayed by the Board is proof positive that all those Board members who voted for this dues increase must be recalled and replaced
with sane people.This needs doing as soon as possible to reduce the havoc these people are causing.

ROY'S BOY

8/3/2022 08:25:09 pm

A cursory search of the minutes and summaries of the recent Desert Princess Board of Directors meetings finds no documentation of any vote authorizing the Tree Management Program expenditure. A bid, yes, but no approval. And as we are all witnessing, over 200 trees both ornamental and citrus are being removed on a daily basis. How much more of this cavalier leadership do you want to put up with?

Leslie

8/4/2022 03:14:09 am

Are you kidding me???? No formal vote on the Tree Management expenditure?? Looks like the committees are taking over in how our money gets spent. First the CDAC tried beyond all reason to have us go into millions of dollars of debt for plants and now the tree management committee is spending God knows how much of our money removing not only dead ones but our lovely citrus trees as well with no formal vote recorded by the Board. Good to know!!! Who needs a Board??

Caroline M

8/4/2022 09:54:02 am

Not only the lovely citrus but also some Palo Verde and other healthy trees. A beautiful Palo Verde in the Arroyos was removed and that was not old or diseased. And as I understand, they are removing and then will think about what to put in place when they see what it looks like with all the trees gone.

Judge

8/4/2022 07:56:13 am

We have had enough of Mangement TRUST. Do you think we could find a realtor to sell our home?
NO No realtor wants to deal with our HOA .
The only way we can sell is if they are cash buyers or actually found a bank that would lend the money to a resort community. Seriously people they are making it almost impossible to sell. Why? Why? Remember WEBB has 10.000 monthly to spend when ever it suits him. Their living high & mighty on OUR dime. When are the people going to STOP this insanity?

Mary Maloney

8/4/2022 11:41:45 am

Judge, as a Realtor/owner at the DP, if you own a villa, there is one lender I know of that can still get a loan done on a villa, but if you own a condo, it MUST be a cash buyer. I have even tried an AirBNB lender I have and no go after looking at our HOA budget. THAT should tell you something that a hard money lender isn't even willing to touch us.......

Layla

8/4/2022 07:12:26 pm

The dues have gone up almost 100 bucks in a two year period. It’s ridiculous. We are not paying what we signed up for, and it’s obviously not a good investment, and NO investment in the property for each personal owner.

There should be an HOA fee control - cap per year (like rent control) lol. Just S. T. O. P.

Summer

8/4/2022 10:42:35 pm

CB, I 100% agree with everything you said- this board is not representing us homeowners properly at all and we as homeowners need to meet up to discuss how best to approach this unfortunate situation we are all facing. The autocratic way of dictating to us here has to stop.

If it’s true that there was no formal vote on the trees, couldn’t the board possibly be facing legal actions by unhappy owners? The communications I’ve seen between homeowners and one of the board members on the committee indicate that they are trying to blame the proximity of trees to condos as a huge liability as to why they’re removing all of the bountiful citrus trees here. What a lovely double whammy- a massive increase in monthly dues along with the removal of our beloved citrus trees.

I have another question about the security upgrade initiatives that were allegedly approved in the budget many many months ago- what has been done to address car and golf cart thefts garage and home break ins ? I have yet to see any fortification of the perimeter walls in terms of additional lighting, sensors, or cameras. If this money was already allocated and approved why isn’t anything being done to address these issues?

Overall the board dictates to us, condescends to us, and doesn’t perform as if they have a fiduciary duty to us. This has to be addressed and we have to unify and help formulate some positive solutions!

Mr.change

8/5/2022 08:19:39 am

After reading these comments I can see theres one thing WE can ALL agree on is 3 out of 5 of these members need to go. We also should look into legal actions, we would have to come together to fund a lawyer. Also there is NO reason D.P. should be loosing money we just need to do the exact opposite of what were doing now.

8/5/2022 04:11:33 pm

So...let's get the community meeting moving forward. Anyone know how we do that?? And Mr. Change. Summer and Mary...agree with y'all flat out!!

Terry

8/5/2022 03:25:35 pm

After reading the comments on this blog, I am encouraged that many DP homeowners are fully aware of the careless, shoddy, and even unlawful manner our HOA board is mis-managing our affairs, together with the fact that the Management Trust is in way over their heads and grossly overpaid.

I am also encouraged that many homeowners see the need for legal assistance and the need to raise funds for same. We need a homeowners meeting to discuss options such as hiring a firm to conduct a forensic audit as suggested by a DP homeowner. We need to oust 2 of the present board members as the 3rd member who needs to go will term out in Feburary of 2023. We need a board that will represent DP homeowners fairly and lawfully, and perhaps a managament team with the intelligence and ability to get out of their own way when necessary. I believe all of the above is possible if we come together and use our collective strength and voting power to make this a reality. Lets get on board and save DP before it is too late.

Diane

8/6/2022 07:10:08 am

Mr. Change, there are 7 board members. Four of them need to go.

Tom Rosa

8/6/2022 08:13:37 am

Hello all. I am glad to see my call for a homeowner meeting has traction. I would like to clarify a few things, we live in a Country club community, Part of the experience is amenities. The golf course / restaurant / gym / spa are all parts of the experience. As a long time owner, I have been preaching forever that a net zero approach is the bare minimum for all of those listed above. The value of ALL of our homes is based on the quality and beauty of the golf course. Lets face it that's why developers build the golf course first in a new community. AS it relates to the restaurant, a smart group of people would evaluate the daily break even average cost of operation and once the level falls below that the restaurant should be CLOSED until it can support itself. That is what restaurants in a seasonal market do every year. Or since I suppose most paying golfers are here Fri Sat Sun. Perhaps do that. The general point I'm making is we need smart people to do business evaluation of operations. The golf course must be maintained it benefits us all. The gym and spa are old and tired. I suspect I could develop a plan to refresh the gym for less than $500K. But again, it's an amenity available to us all.

Yes , this board has vanity projects, but some do benefit us all. My continued frustration is that NO ONE including the Management Trust has the business acumen to make informed decisions. They just approved a budget increase without distributing the budget to ALL of the board members. I rest my case on that.

So, what do we do. First please stop with " you elect stupid" comments. No one suspected that these humans would "rubber stamp" whatever Webb says. But now that we know that the current vote on the budget increase was done without full disclosure to the WHOLE board. That in my mind is a material failure of their fiduciary responsibility of the board. I suspect that language is in our CC&R's. If the Management Trust had any professionalism, they would have advised the board against that action.

So, let's collectively get off our asses and attend the meetings. BTW I used to attend years ago but I was asked to stop by a previous board. (long story) But basically, I asked a lot of questions some of which we are still talking about. I am not the smartest man in the room. Nor do I pretend to be. But I do know how to run a business and solve problems. I will no longer be dictated to by a group of self-interested puppets. But I have to give Bill and Martin some props for at least trying to do the rite thing.

Michelle

8/6/2022 11:44:53 am

Tony, I agree with a great deal of your commentary. The stupidity of this situation lies in OUR continuing to blindly accept mediocre business acumen in our leadership and the ability to mobilize the community in sufficient numbers to rectify serious malfeasance by the Board. Case in point....roughly 50% of our owners even bothered to cast a ballot to recall Webb several months ago. Many concerned owners initiated the recall only to see their effort defeated by owner apathy.

On the positive side, when motivated by practical and economic concerns, 75% of owners cast ballots to defeat the multimillion dollar "plant swap".

An owner request for a special meeting is definitely called for based on what certainly appears to be several Board members abandoning their fiduciary duties to our community in not only not voting on our annual budget (they blindly RAISED our dues...period) but appear never to have voted on the Tree Management expenditure.

How can we ever trust them to do the right thing with OUR money based on the sloppy business practices exhibited by not only the Board, but our property manager going forward?

Michel

8/7/2022 03:12:38 pm

Tom, Do you really think that attending these so called meetings are really really going to help? I have been here for 18yrs attending every meeting until Trusted Mangement Co . After a few of those I knew we were going to have uncontrollable issues. Why are YOU PEOPLE so afraid to step up and address this uncontrollable issue? I'm NOT !!!

Realist

8/6/2022 11:14:32 am

To Tom Rosa,

thank you for a thoughtful and intelligent overview of our problems and the remedies for them, as far you went, would you be prepared to take on the mantle of running for office or at least act in a capacity as advisor to the Board. I expect that all homeowners would be prepared to act as advisors to the Board but we need those who can be objective and not selfish. We are a diverse community and should try and support all viewpoints, that of course is not realistic but if we can accept that the majority viewpoints on all topics would be a good starting point, taking into account the financial aspects of those topics as a controlling feature.

We should change the way our community is run, allow for all inputs on all topics to be discussed openly with that input from all.
Yes, it will be a little more work but I am willing to bet that we will have enough volunteers to assist in that work.

To all readers of this post, Are you willing to act as an assistant in helping resolve what the majority would like to see done by the Board.
I envision a system of Blogs that would pose questions, sent to all homeowners to allow and solicit input, then the responses would be counted and reported to the blog and the Board.
Everything being done in the open for all to see and participate in.
Please respond to the blog if you think this is an idea worth exploring.

Judge

8/7/2022 03:13:42 pm

We are in!

Kim

8/7/2022 04:13:17 pm

I'm not in. Rule by blog concensus is rather idiotic, don't you think? This blog has been an invaluable tool that enables communication within our community, filling a void initiated by a Board governed by a dictatorial President, who endorses secretive community committee deliberations.

We need to become more engaged in DP governance , including attending meetings (by Zoom if necessary) and taking an interest in our Board elections. A 50% electoral participation is pathetic.

Realist

8/7/2022 05:28:14 pm

Kim, you agree that "This blog has been an invaluable tool that enables communication within our community,"

I did not suggest "Rule by blog consensus" I suggested that we expand on that concept of free and open discussion on all topics that we as homeowners need or want to have a voice on.

There will be items of necessity, things that must be done for our community to operate and stay alive. Then there are the nice to have things.
This is where we can, through the blog process, discuss those items and find where a consensus lands without going to an official vote and therefore save the cost involved in that process.

A true democratic process, where all who want to be heard may do so, and where, through the process, the majority opinions on any given subject will become apparent. This would mean that the homeowners control the Board 7 and not the other way round.

WE TELLING THE BOARD WHAT WE WANT OUR CASH SPENT ON.

No more dictators with pet projects, or those with ulterior motives.

Having a zoom meeting (while being a good idea) with the potential for 1206 attendees who all want their say would be a nightmare, if not impossible, to operate.

Especially if one of the attendee's voices, that in their opinion, a given suggestion "is rather idiotic, don't you think"?

Tom Rosa

8/8/2022 08:34:47 am

Ok lets not eat our own. My idea was to assemble a group of like-minded homeowners and have a meeting with the board. Not the HOA meeting. As far as running for the Board, I am still working and don't have the time. But like everyone, I do find time to bitch and moan on this forum. I do not have a copy of the CC&R's but I'm sure others here do. Can someone research the language of the "fiduciary responsibility" of a board member? I assume its covered somewhere in there. Anyone here who knows me, knows I am happy to go to war with the HOA. Provided with the information, I am happy to stir the pot.
We had every intention of moving from the DP but alas we are still here. But nearly $750 a month for the HOA and largely the inability for lenders to write mortgages is disturbing. Let me be clear, I am NOT afraid of anything or anyone. But we as a group need to do more than write on this blog. I am open to ideas.

Realist

8/8/2022 10:27:04 am

Tom, I have included the link and the text for your convenience. This relates to the Davis Sterling act which is the controlling act for our Board and all things HOA related in California.

https://www.davis-stirling.com/HOME/F/Fiduciary-Duties-of-California-HOA-Directors

Fiduciary Duty: A duty to act for someone else's benefit, while subordinating one's personal interest to that of the other person. It is the highest standard of duty implied by law (e.g., trustee, guardian). -Black's Law Dictionary

Association Fiduciary Duties. A homeowners association has a fiduciary relationship with its members.

[I]n recognition of the increasingly important role played by private homeowners’ associations…the courts have recognized that such associations owe a fiduciary duty to their members. (Cohen v. Kite Hill Community Assn. (1983) 142 Cal.App.3d. 642, 650-651.)

Directors of nonprofit corporations such as the Association are fiduciaries who are required to exercise their powers in accordance with the duties imposed by the Corporations Code…This fiduciary relationship is governed by the statutory standard that requires directors to exercise due care and undivided loyalty for the interests of the corporation.” (Frances T. v. Village Green Owners Assn. (1986) 42 Cal.3d 490, 513.)

Generally, fiduciary duties owed by a homeowners association to its members are limited to those arising from its governing documents and relevant statutory requirements. (Golden Eagle Land Investment, L.P. v. Rancho Santa Fe Assn. (2018) 19 Cal.App.5th 399, 425; Ostayan v. Nordhoff Townhomes Homeowners Assn., Inc. (2003) 110 Cal.App.4th 120, 129.)

Director Fiduciary Duties. Board members have a duty to act with the utmost good faith and reasonable care for the benefit of the association and its members. This applies to directors of both incorporated and unincorporated associations.

It is well settled that directors of nonprofit corporations are fiduciaries. (Raven's Cove v. Knuppe.)

Directors of nonprofit corporations such as the Association are fiduciaries who are required to exercise their powers in accordance with the duties imposed by the Corporations Code. This fiduciary relationship is governed by the statutory standard that requires directors to exercise due care and undivided loyalty for the interests of the corporation. (Francis T. v. Village Green.)

A. DUTY OF CARE (Due Diligence; Duty to Investigate). Directors must be diligent and careful in performing the duties they have undertaken. (Burt v. Irvine Company.) Directors must:

1. Attend and participate in meetings so they can be informed about the association's business.

2. Make reasonable inquiry re maintenance issues, rules violations, etc.

3. Make decisions.

4. Keep corporate records.

5. Enforce the governing documents.

B. DUTY OF LOYALTY. In addition to the duty of care, directors and officers owe the association a fiduciary duty of loyalty. (Bancroft-Whitney Co. v. Glen (1966) 64 Cal. 2d 327, 345.) That means protecting the interests of the association and refraining from doing anything that would injure it. (Bancroft-Whitney, supra. at 345.) This includes the following:

1. No Self-Dealing. Directors cannot use their position of trust and confidence to further their private interests. They must act in the best interests of the association even if at the expense of their own interests. This is more than just embezzlement of funds; it includes steering contracts to family members or taking actions that result in personal benefits to the director at the expense of the association. Violation could result in (i) liability for all profits received, (ii) all damages caused by the breach, and (iii) punitive damages.

"We note that the duty of undivided loyalty applies when the board of directors of the association considers maintenance and repair contracts, the operating budget, creation of reserve and operating accounts, etc. Thus, . . . [directors] may not make decisions for the association that benefit their own interests at the expense of the association and its members." (Raven's Cove v. Knuppe.)

See Director Conflicts of Interest.

2. Duty of Confidentiality. A duty to keep confidential matters confidential falls under the duty of loyalty. Breaching the duty of confidentiality could result in harm to the association, which would be a breach of the Duty of Loyalty. See "Director's Duty of Confidentiality."

3. Duty to Preserve Common Areas. Boards have a duty to protect, preserve and enhance the assets of the association. An association's primary asset is the common areas.

4. Duty to Support Board Decisions. The duty of loyalty can extend to the support of board decisions. Because board members are entrusted with the money and property of the association they must avoid conflicts of interest.

Breach of Duties. Board members are held to a high standard of conduct, the breach of which may subject each or all of them to individual li

Bill

8/8/2022 12:30:22 pm

Regarding the broad issue of the trees, a narrow scope concern leads to a simple question from me; how in the world would the thought of getting rid of all the fruit trees even enter ones thought process!? And even if the thought did enter for more than a minute, would the person say this to someone else without total and shameful embarrassment? And then, to be suggested to this community, this is total lunacy. So, ok they backed out after coming to their senses, but still the justification of any number of fruit tress still needs some basis. The only possible legitimate reason from the list would be a huge fruit tree dropping fruit on a roof. Other than that, maybe consider trimming, or adding rat traps? There are other reasons for rats too and not our beloved fruit trees. I am very fortunate to have a Ruby Red Grapefruit tree on the side of my Villa. I have a juicer and love to eat and make juice with what it produces. Over my dead body will someone chop that down. I question the experts’ credibility who are on the TMC and behind this. The life expectancy of a fruit tree is 50 years, and even if it continues to produce fruit at that age do you still kill it?

Michelle

8/8/2022 02:33:49 pm

What I believe we have here is yet again another communications failure by this Board. It is apparent that they have failed to differentiate communication with dictatorial and punitive notices to owners. This Board is perhaps it's own worst enemy in their tone-deaf governance of our community. They oversee our affairs by lurching from one crisis to another, almost entirely a result of their own making.

8/15/2022 09:00:30 am

Seems to be one thing after another.

Michel

8/9/2022 07:26:07 am

Yeah ,now we're going in the right direction.

Lindsay

8/9/2022 07:27:41 am

Did everyone read about Fannie & Freddie?

Judge

8/12/2022 01:42:02 pm

No body around here?

Judge link

8/22/2022 06:54:48 am

The increase is to pay for our landscaping. Trees , dry scape, no grass driving range etc etc etc

Lynn

8/22/2022 05:04:42 pm

As much as the tree removal project is a very contentious issue, I have to admit the photos being distributed regularly of the trees being removed certainly proves there are many rotting, damaged, and dangerous trees on the property. Those trees definitely needed immediate attention and removal. I believe once the necessary trees are removed, it will provide us all with a more attractive landscape, as well as ensure safety issues, and limit repair issues to the buildings.

Malcolm R

8/25/2022 09:16:38 am

These trees should have been removed years ago as part of the routine landscaping maintenance. It is just another example of poor performance by our overpaid Management.

Mr.Change

8/22/2022 06:08:44 pm

PEOPLE beware we can all say we will elect new board members. But i can guarantee you that Peter and the other board member that has termed out will not leave. We need to be ready for some shady stuff they will pull. Lets look at the CCRs get a lawyer and be ready to fight. I guarantee you this crap there pulling is NOT legal
LETS TAKE BACK OUR COMMUNITY

David

8/24/2022 09:53:50 am

Yes indeed we need to pull together ?

Mr. Change

9/8/2022 06:49:19 am

People lets pull together, this president is acting as dictator. We can go through the CCRs as there is governing rules they have broken. If we need to get a lawyer so be it. THEY are Destroying this once Beautiful place.

Lindsay

9/8/2022 10:04:22 am

YES! What, when , how are we going to stop this harassment? Anyone? Anything we can do?

Michel

9/16/2022 10:10:50 am

We're did everyone go? Are you not concerned with our future?

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.

This Blog will not publish any comments that are personal attacks or unrelated to the published post.

PLEDGE

BE HELPFUL
Share this space in a constructive way. Be kind, not judgmental, in your conversations

BE RESPECTFUL
Remember you are speaking to your real neighbors. Strong communities are built on strong relationships

DO NOT DISCRIMINATE
Racism, hateful or foul language, or discrimination of any kind will not be tolerated.

NO HARMFUL ACTIVITY
Any activity that could hurt someone—from scams to physical harm—are off limits.

YOUR CART