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4/16/2022 63 Comments

You have an opportunity to choose how your money will be spent to revitilize our landscape

An email was sent out expressing concerns that the Board would like the the homeowners  to authorize a commercial Loan that will fund a project to "revitalize" our landscape.   This loan will be collateralized by the HOA's receivables.  In other words,  the board is asking every homeowner to be personally liable for $7.1 million  to be paid back over the next 15 years . 

The email is shown below.

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The Blog would like to know your thoughts.
63 Comments
Niki King, CRS, CIPs, Broker, RN link
4/19/2022 07:07:10 am

I have been wanting to dig deeper into Solar Panels for our HOA. I would rather save $500/month for A/C and spend monies on being more sustainable vs. a landscaping project.. Can we get some feedback on going green and installing solar panels which would save us so much money each month on utilities as well as being responsible for the planet and doing our part of "BEING the change" Would love your thoughts...

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Joan
4/19/2022 11:11:09 am

Unfortunately, those at the helm of the current board, do not know how to negotiate a good solar contract. The one they got us in is a long term losing deal. I am all for solar. But, better to wait until the board turns over to see if someone who actually understands what they are signing, is in charge of it.

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George Sonsel
4/22/2022 06:45:38 pm

Joan, what a dismaying, albeit an accurate, suggestion, to wait until the current directors term out or not win a re-election. While I realize you're right on, a major thorn in the side of this suggestion is how the Board has successfully perpetuated themselves by avoiding the Bylaws' term limits and/or seeking legal justification for allowing a member to exceed their term limits. This narcissistic, authoritarian behavior by most of the Board frightens me more so as this way of thinking guides their decision-making all the time.

Joanne Forberg
4/19/2022 07:14:54 am

We are Canadian home owners in the Desert Princess and have been for over Ten years. This idea to us means another 500 Plus dollars per year for HOA fees. I realize it is not the boards problem that the Canadian dollar is much lower but I also think the Board should realize that there are a lot of Canadians that own homes in the Desert Princess and have done for years and have supported and loved the Desert Princess. However, when does the constant raising of fees stop ?

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Bud
4/19/2022 11:13:27 am

With this board, the increase in fees will never stop! It is normal for them to go up a little every several years. But... this board, is really something else. Their parent's forgot to tell them that money doesn't grow on trees. Or, perhaps they do know that. But, they see the homeowners they represent as their very own personal blank check.

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Judge
4/19/2022 08:00:44 am

When will this petulant behavior of the BOD HOA ever end?

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Dr. Donna Dudley
4/19/2022 10:43:01 am

We had an opportunity to change the Board and did not.

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George Sonsel
4/22/2022 06:58:42 pm

Dr. Dudley, you make the most poignant of comments in that short sentence. It baffled me when the winners were announced, and the President seemed to sail through the recall without a ripple disturbing his secure position on the Board! Is this because a substantial number of residents sat passively by letting fate dictate their future or is there a substantial number of residents supporting him?

Vote No on today's ballot measure to subject many of us who can ill-afford the unpredictability of this current irresponsible Board of Directors

Sheri Lubow
4/19/2022 08:23:50 am

Hello

I completely disapprove how the board can expect us homeowners to agree to a project that is yet to have a rendering of any sort, or a plan. Their “we will figure it out” does not go an inch with my vote on this. It was pointed out that revitalization plan should be considered with our yearly landscaping budget. If it’s going to take 15 years to pay off 7.1 million dollars, then really the landscaping plan should be what can be accomplished with our existing landscaping budget year by year. This board does nothing except to figure out ways to go around the homeowners and give mistruths about projects. . I believe desert princess has a architectural and landscape committee? If so, they should be the ones making sure all homeowners get to see a rendering and a proposal. Minus that, we homeowners should all be a NO to this project. I do not want an additional fee then come October the board will vote to raise our monthly dues again.

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Dave Grant
4/19/2022 08:59:28 am

Don't panic, Vote NO, it is not a done deal until all votes are counted!

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Patty Larp
4/24/2022 07:27:29 pm

That right just Vote NO.

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Vivian
4/19/2022 09:06:05 am

We live in Canada and were not able to attend at the town hall meetings, but after reviewing the monumental information and documents available on the portal I still have huge concerns.

How will we as homeowners, not be affected by this " monumental " debt lingering over our heads for 15 years. I was told it was a commercial loan and that we as homeowners wouldn't be affected, yet this commercial loan is fully funded by homeowners dues.

How could a loan of this magnitude not affect the F/F Do Not Lend list when we haven't even been advised WHY we are on the DNL list ?

The scope of work projected is hugely dependent on costs at the time of implementation, over a period of 18 months or longer. It would seem more likely than not, that the growing inflation rate, supply chain and lack of skilled workforce would have a significant impact on the actual costs to complete this project.

Converting to desert landscape was supposed to improve the appearance and yield savings in both water and maintenance and now this landscape is being used as an example of the need for this new revitalizing landscape project. Alternatively, Arroyos landscape is being used as an example of what the new landscape project will look like, yet it too is showing signs of deterioration. Roads, trees AND plants are already maintained through our budget and should continue to be maintained on an " as needed " basis until at such time we are in a better financial position to afford further improvements WITHOUT the need to enter into a 15y loan. The desert scape, irrigation and solar projects were all supposed to yield savings but it doesn't appear that has been, or is currently the case.

There is no indication that our property values have declined, in fact quite the opposite. I would think any potential buyer would be more concerned with the amount of crime that is ravaging our community, the soaring monthly assessments, and the F/F situation ( ie: not being able to sell their homes ) than replacing signs and plants at such an exorbitant cost.

Lastly, I have huge concerns that the Board is trying to get this project approved through an increase in monthly dues as opposed to a special assessment. It would seem far more prudent to have this approved as a special assessment rather than paying over TWO MILLION in interest. Imagine how many plants we could buy with two million dollars. It doesn't appear the Board has much faith that this project would be approved if needing 50% of the homeowners approval.

Our concerns are centered around financial accountability, not around an inability to pay. We fully expect our dues will increase due to the current state of the economy alone, without the need to take on further debt.





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Dianne
4/19/2022 05:06:15 pm

Well stated Vivian.
This part is what should alarm everyone the most:
"It doesn't appear the Board has much faith that this project would be approved if needing 50% of the homeowners approval."
***Just goes to show, that we don't have a board that gives a damn about the majority! Only themselves. This vote would NOT be taking place this way if they cared what the community really thinks!

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George Sonsel
4/22/2022 07:28:45 pm


Thanks, Vivian, for your cogent analysis of the Board's distorted decision-making despite the amount of expertise available for free in the community Their knowledge and skill could have guided the discussion and decision. [BTW, thanks to the lone logical Board member who voted No to spending money on an unnecessary election, because the item should have never gotten this far along in the process.

Today we received word that our refi with a conventional loan was approved but cannot be funded due to the DNF order which has yet been addressed in a timely manner according to the loan company representative. The loan could not be funded until the required documents have been submitted, reviewed, and approved. The Board whom we elected to represent our interests has neglected their fiduciary responsibility. Now they have the audacity to request our support to take out a loan for $7.0 M, assess us a fee to pay for it when they can't even produce a rendering for our perusal before resolving one of the most critical financial situations the HOA has faced in recent times. To this Board I say, "Get off your duff and attend to the significant business at hand or remove yourself from office if you can't face your errors and make the truly tough decisions." Where are your ethics?

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Larry Jacobs
4/19/2022 09:11:15 am

this project was explained very well and is way over do, I'v lived here or had a house here since 2003 , most of the landscaping is far from it's life time, I VOTE YES

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Dr. Donna Dudley
4/19/2022 09:41:50 am

Is this really necessary? Why do we not have payment options? The continued rise in HOA and related assessments should drive the board to look into cost saving methods, rather than continued assessments.

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Terry
4/19/2022 09:43:32 am

Please everyone. Vote NO on this 15 year debt and ill conceived landscape plan. This five million dollar debt is sure to be used as a slush fund for the BOD based on a plan that is VERY light on details, time frames, and other important issues that would be part of a well conceived plan. This money will be spent for every stupid thing the BOD can imagine such as a $500,000 revamp of the patio at our restaurant that will never turn a profit, etc. etc.

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CB
4/19/2022 09:51:35 am

$7.1 million is a lot of money to spend. I am not opposed to some revitalization of landscaping but $7.1 million??!!!

I am 100% opposed to forcing homeowners to reach into their pockets every time the board wants to spend MY MONEY. Things like redoing the gym or patio - to what end? Or the SPA? It is my understanding that part of our HOA fees are already used to cover the annual losses generated by the golf course and restaurant. How about considering ways to get those two potential income sources running even or better yet, in the black?! If our HOA fees did not have to subsidize those losses, we would already have more funds available to revitalize SOME landscaping.

I went to one of the meeting about this landscaping proposal and heard lots of conflicting information ( we know the cost we don't know the actual cost for instance). It was also stated that questions written down would be read and answered and at the meeting I went to - this did not happen. Some of my questions included - why isn't the main focus on getting the golf course and restaurant to stop running in deficit, why isn't all energy focused on getting DP off the DO NOT LEND LIST, if the loan went through what happens to the assessed balance per unit if the homeowner sells before it it paid off, what if you wanted to pay your share all at once and be done vs paying with interest every month...if anyone else heard an answer to any of these, please share what you heard?

I have said if before and will say again, there are two ways to balance a budget, one is to spend less the other is to earn more. Homeowners cannot continue to be the income source for projects we do not all agree on. And if anyone knows about the change in how many people have to vote in order to slam this loan through, please post that information. It is my understanding that the board changed the number of votes it takes - please tell me I am wrong.

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Pamela crawshaw
4/19/2022 10:09:37 am

I’m hoping that there will be a majority of owners that will vote NO. I totally agree that this HUGE cost shouldn’t be considered. The landscaping can be renovated by the ACL over a period of time and do only the important areas that need work. The Board are definitely not listening to the home owners. I agree with everyone who has voiced their opinion Why we shouldn’t be doing this project.

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Patty Larp
4/24/2022 07:39:27 pm

I hope every homeowners just vote NO to this revitalization of landscaping for $7.1 million NONSENSE.

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Troy Dose
4/19/2022 10:22:10 am

Where is the complete set of plans and renderings of what they are doing? Also, if you are going to raise our dues by that much, why do we not use it for something a little more practical? Like additional security. We all know that is a joke and probably an inside job. The place is beautiful already why do we need this now when there is more pressing issues at hand. Furthermore, if we are paying for it I would love to have a say in what happens around my unit. Like cutting the fruit tree down affect the structure of my unit and giving a pathway for rats to get into our ceilings.

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Cathy
4/19/2022 10:27:11 am

Thank you for keeping us informed. As many Home owners have expressed, we agree that the landscaping looks good as is and spending 7+ million dollars without any plans in place, seems very insured. Can we start a petition or something? Can the HOA board just make these decisions without voting?

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Patrick Reynolds
4/19/2022 10:43:32 am

Without going through the process of updating the Project Value Engineering before voting on this, to me, is totally irresponsible, for starters. Secondly, where is the Master Plan identifying the specific areas in detail to be upgraded in what is Phase 1 in the overall scope of work that was presented by the Consultants? Thirdly, who is adminstering this project? Is a professional project construction manager or firm part of this proposal, or are we relying on lay persons on the landscape committee to run this project? A major red flag if the latter. Without any specifics, updated costs, and a project schedule laying out the timelines of each step in this process is exactly how not to run a project of this scale. The Board is putting the cart way before the horse here. Until these questions are answered, I am voting NO to any further increase in our assessments.

I am a licensed Landscape Architect and C-27 contractor with 45 years experience scoping, designing, conducting community stakeholder meetings, and managing large scale projects of this type, in both the public and private sector. The specifics of all this need to be addressed before blindly proceding, and especially prior to updating the project budget that is how many years old now and not revised to reflect current costs? Why are we proceding to vote to approve this prior to being provided a current budget? This is not the way you run a project of this scale based on a preliminary budget that did not address all the details now being proposed to implement based on conceptual renderings, except to "figure it out as we go"? That is just not acceptable. That is exactly how costs spiral out of control. Community Meetings are suppposed to take suggestions and comments under advisement and repsond/to each one of them to resolve any questions or issues before securing funding or commencing a project. What is happening here goes against all standards of professional practice. We have plenty of other higher priority issues (like refurbishing all the pool mechanical systems, replastering, tile replacement, etc., upgrades) to deal with before adding more projects and monthly costs with the landscaping refurbishment, which, with proper maintenance and oversight, and incorporating spot replanting of certain areas, can be managed fine within the maintenance budget already approved.

This project is worth doing, but not without all the specifics detailed and spelled out first so people can make an informed decision before committing to a $5 million loan and more monthly fees to do it. There is no urgency that this has to be voted upon before these questions/issues are all properly addressed. I have offered my services before and offer them again to assist in this process. Thank you for your time.

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Michelle
4/19/2022 02:02:27 pm

Patrick, the points you make are exceptionally well stated, accurate and easy to understand. The reality is that by lowering the quorum standard from 50% all owners required to vote (603) to 33% (402) it is very possible this measure can be passed by by 16% of our community. We can debate the merits of this project ad nauseum but the reality is this measure is going to a vote. It is therefore imperative that we ALL vote and just vote NO!!!!!!!! If we do that, this insanity ends!

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Pam
4/19/2022 10:49:05 am

I will not vote one more penny for our BOD to squander as they have in the past! Get real...we have security problems, lending problems and many other things that need our attention and money...NOT THIS!
Pam

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Rebecca Schneider
4/19/2022 11:07:08 am

I feel like we (the homeowners) who pay $710 per month HOA dues, are getting gouged. The fact that our dues have increased almost $100 since I bought my Arroyos villa in 2019 is annoying. Will someone tell me what is included in this proposed "relandscaping" (Honestly, what I've noticed lately in the Arroyos while I'm out walking the paths is that the palms and shrubs are looking SPARSE and I see a lot of plants being pulled out of the ground with no replacement. What's up with that?

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RM
4/19/2022 12:37:46 pm

Our HOAs here are already high. Being fiscally responsible is important for the Board replacing plants for the hell of it is not responsible. When plants and trees die replace as necessary along with regular garden maintenance.

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Peggy Daniels link
4/19/2022 03:35:21 pm

The recent "Revitalization Plan", as presented, was a nice overview of how Desert Princess Country Club could be viewed in the future by visitors and potential buyers. Were all costs carefully analyzed/totaled, and the best interests of the current Owners had been taken into account? After completion, would Owners consider this new "view" to have been worth $7 Million? As presented, the plan certainly appeared to fall short of receiving full support. I'm awaiting the complete proposal, in detail and in print, with up-to-date cost!

This new Board proposal smacks somewhat of the BOD's recent "need" to secure ownership of the "remaining holes" to complete the highly touted Desert Princess 27-Hole Golf Course. Not owning all 27 holes came as a surprise to me. The formal proposal submitted for the Vote of Owners asked only for PERMISSION to "buy" the remaining six(?) holes from the water district and tribal family, without a quotation of cost...as in carte blanch. A majority of Owners accepted this form of authorization--will they do so again with the "Revitalization Plan"?

I have the feeling there are a large number of non-permanent-resident Owners whose attitude is, "Ohhh, whatever...I don't have time to think about it." Owners must make time before taking on an encumbrance of $7 Million!

BTW, I don't recall seeing anything from the Board regarding the actual and final purchase of these golf holes. Did I miss it, or Is it still in limbo, to be added to this NEW expenditure?

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Barbara Kitzman
4/20/2022 06:50:28 am

This is a resort community and if we want to maintain our property value it's important we keep everything updated and maintained.

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Kim
4/20/2022 01:31:07 pm

Unfortunately Barbara, our property values will more likely will NOT be adversely affected by some aging trees and flora, but will be devastating by HOA dues likely to hit $800.00 due to this project and 7% inflation in October, the fact DP is on the Do Not Lend list of mortgage lenders, financially punitive rental policies and an HOA governed by a Board who's spending is spiraling out of control. Spending including $300K on a gym reno that generates absolutely zero revenue, utilized by less than 3% of residents, renters and hotel guests. All of which will be augmented by an HOA in debt for 15 years to the tune of $5.2M to swap out trees and plants. Real estate sales are already falling through due to the inability of potential purchasers to secure a mortgage to buy here and existing owners are unable to utilize their home equity to upgrade their homes. No Barbara, the very least of our worries certainly appears be far, far more serious than the accelerated replacement of some dead and dying trees and shrubs. We have ZERO information on which to cast an informed ballot before being plunged into a multi-million dollar loan for years to come. Don't you find that the least bit odd?

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Karen Suigg
4/20/2022 03:51:53 pm

So did the quorum really pass getting lowered to 33% from 50%?
If yes how did that happen?
thank you in advance for responses

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Michelle
4/20/2022 05:19:01 pm

Sadly Karen the quorum benchmark was lowered from 50% to 33% by a vote by the Board on March 25th, 2022, 6 members in favor, 1 opposed. As to their rationale, you'd have to ask the 6 who voted in favor.

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Craig Robinson
4/22/2022 07:19:54 pm

I do not believe that that is accurate. In the early days of the association, we were hamstrung by the apathy of many nonresident owners. Since we were mostly a nonresident community at the time, getting a quorum of 50% was problematic. We often had to do votes and elections more than once, with the cost being doubled. I do not remember whether the law changed allowing a quorum to be reduced to 33% or whether it was always allowed as long as it was in the CC&Rs. The quorum requirement was changed by an amendment to our CC&Rs in 90's, not March 25, 2022. All they did that day was state what our quorum requirement is, not modify it. The Board does not have the power to modify CC&Rs.

Concerned resodent
4/20/2022 04:29:38 pm

VOTE NO. My contract when I closed here in 2019 told me dead plants and shrubs are HOA responsibility. So is caretaking of my property as well as common area. I have weeds growing like shrubs. I have dead plants removed and never replaced and my front entrance is rarely ever blown during monthly maintenance. I took all that into account when moving here and understanding the $640 monthly fee which is now $710. If HOA fees were used as specified the maintenance of the property would have been kept up along the years. I honestly do not know what the $710 get s me each month other the. Now cable WiFi and internet. I was an unfortunate home owner whose home was broken into and lost thousands of dollars of personal items. Yet security drives around sending HOA notes on cars parked in the wrong direction or giving out citations. This is one of the highest HOA fees in the area. If the increase pace keeps up we will all be in foreclosure. I would love for someone of the board to tell me e act,y what the breakout is per resident for the $710 a month. The only item I’m clear on is spectrum.

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Kim
4/21/2022 12:02:17 pm

Well, it's now game on! The ballots for the vote to borrow $5.2M are in the mail. All owners should receive them shortly. If you don't receive yours, do NOT contact the HOA, call the Inspector of Elections to obtain a replacement ballot.

Because of the reduced quorum threshold, it is critical we all vote to ensure the will of the majority of our community is accurately reflected. Failure to vote can result in all of us assuming a multi-year, multi-million dollar debt based on the elitist will of 203 owners who may be satisfied doing so with absolutely no definitive plan and obsolete pricing.

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PMP
4/21/2022 01:47:10 pm

As a DP homeowner, I am beside myself on what is happening with our board, the revitalization committee, security etc..
We don't have all the facts for this revitalization. One board member votes no on putting this up for a vote so that should tell us that the board doesn't have full support for this project.
It's all about the board trying to get the revitalization approved so they can continue on spending our $710 HOA money on the restaurant, golf, fitness center, and any other place THEY deem necessary. What they want to do should be budgeted and and the expense should come out of the HOA fund. Don't allow them to borrow over $5m and pay back $7m.. VOTE NO.

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Terry
4/22/2022 09:24:38 am

There is NO new information about the landscspe plan in the cover letter with the ballot package. There is however NEW INFORMATION about the loan. The initial loan rate guess is 5%. Just a guess. Halfway through the loan amortization ( 7.5 years out) the loan will be RESET. The new loan rate could be three or four times the initial loan rate and monthly payback. THIS IS PURE INSANITY. Little wonder the bank chosen by the BOD would be HAPPY to make this loan. It is crazy. THIS BOD will bury us in debt and insure that we will never be removed from the no loan list by refusing to sell the restaurant facility to remove homeowners from the commercial type risks associated with the revenue shortfalls of the restaurant, which are strictly prohibited in residential mortgages.

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Peggy
4/22/2022 09:58:42 pm

There are a number of concerns relative to the BOD's request for Owners' approval, via immediate vote, of a $5+ Million loan to cover costs for a "revitalization project: at Desert Princess CC:
1. Lack of updated costs to implement a "revitalization project" for Desert Princess CC. The current costs are 2+ years old;
2. Lack of specifics (as promised on March 27) related to the "revitalization project"; and
3. Missing identify of bank(?) supposedly agreeing to loan $5 Million to Desert Princess CC in light of the "do not loan to Desert Princess CC" status.

Perhaps it is time for Desert Princess CC OWNERS to come together as a unit, separate from the BOD, to hire an attorney to protect our interests in this proposed project and encumbrance, and our ownership rights in Desert Princess CC. We should take this step NOW and hold off voting until the deadline. I would appreciate hearing from Owners ASAP!

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Dave
4/23/2022 08:09:04 am

Peggy I do not think there is enough time to follow through on your good thoughts before the votes will be counted, We are left with only one choice,
VOTE NO, and in good time to ensure your vote will be counted.

Your ballot must be mailed so that it is received by the Inspector(s) of Elections no later than 5 p.m.
on Friday, June 3, 2022

We should not delay, vote early and vote no.

If a majority vote no, then no encumbrance on us can be undertaken in regard to this proposal.

Tell your friends and neighbors.

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Lisa
4/23/2022 01:53:48 pm

I agree NO ! No more HOA increases !
Vote NO !!! Fix the errors first.

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Dave
4/24/2022 06:37:39 am


They say "The Loan will be a 15-year, fixed rate term Loan." then in the next sentence they say "expected to be approximately 5% with a reset halfway through the Loan term."

So, this is not a 15-year fixed rate term at any given rate, it will be "RESET" after 71/2 years. How many people can forecast what interest rates will be in
7 1/2 years?

Interest rates could be 20% or 30 % or 50% or anything at year 7 1/2

There will be NO negotiation at year 7 1/2, we would already be committed to pay whatever interest rate the bank say we must pay.

Much worse than we first thought:

If the Board is allowed to take on this loan, The Desert Princess will be tapped out with regard to any future financial needs, emergency or otherwise, until this loan would be paid off.

We would be mortgaged to the hilt.

This is what the Board said:-

To obtain the Loan, the Board must pledge as collateral the HOA’s cash flow which includes HOArelated accounts receivable (membership assessments and lien rights), operating bank accounts, andoperating investments. Reserve operating accounts and investments as well as any HOA real estate is notpart of this collateral pledge. When finalized, the Loan will be subject to additional terms and conditions.Once the loan application has been submitted and the rate locked, specific information on the loan will be
posted on CondoCommunities as noted above.

EVERYTHING is Mortgaged to the hilt

and then this:-

"When finalized, the Loan will be subject to additional terms and conditions."

What additional terms and conditions?

JUST VOTE NO!

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Michelle
4/24/2022 01:11:04 pm

Craig, I'm not entirely sure about any quorum changes mandated by statute in California, but it the rules were changed in the 1990's, I'm curious why a 50% quorum was required a few years ago when owners were seeking to permit condo patio extensions and not to get thrown into debt for 15 years in volatile economic times. If 33% was the norm for this type of measure, why was it necessary to review the voting quorum in a closed executive session with legal counsel on March 25th, 2022 as per the Sunmary circulated by the Board to the owners. Of additional interest is that this summary totally omitted the fact that in the open meeting, the Board announced quorum for purposes of this vote to be 33%. It certainly appears that in an extraordinary effort to avoid using those two words, SPECIAL ASSESSMENT, the HOA lawyers and Board were able to eliminate the 50% quorum. One thing we can be certain of is that this whole process has eroded confidence in the leadership of DP in many quarters, which is most unfortunate.

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Craig Robinson
4/25/2022 06:08:50 pm

Michelle:
You are half right, and you forced me to look it up. The quorum requirements are in our By-Laws, not CC&Rs. Section 5.5 states that the quorum for voting on assessments is 50%, and 33% for everything else. It pertains to all assessments, not just Special Assessments. The question is, why isn't the quorum requirement 50%? Here is a lawyer like answer. I say lawyer like because I am a retired criminal lawyer, I did not practice in this area, and I no longer carry malpractice insurance. This ballot measure is not an assessment, it only authorizes the Board to procure a loan. It obviously will lead to an assessment, but it is not one now. I do not know if this type of logic is the state of the law or if it would hold up in court, but I bet that the Association's attorney gave the Board advise along those lines. Otherwise, why would they go about it this way? Once the loan is procured, it has to be paid back, so approval of the assessment will be mandatory, regardless of the quorum requirements.

My objection to your previous statement wasn't a statement as to whether this project is a good or bad idea. That is for each one of us to decide. My problem with your statement is that when you accuse the Board of doing something improper, which they didn't do, it weakens your argument as to the real issue.

Terry
4/24/2022 07:59:07 pm

The BOD is putting out inaccurate and untrue info about the proposed landscape loan that will cost much more than 7 million dollars including interest costs. A loan RESET 7.5 years out was NEVER DISCLOSED untill the "cover letter" on the ballot package two days ago. The RESET could increase interest rates for the loan by 3, 4, or 5 times the initial interest rate with a corresponding increase in monthly loan payments. This was not disclosed to homeowners seemingly as an attempt to hoodwink them into approving this insane loan without complete and truthful information. There are laws against this type of behavior and it certainly violates fiduciary responsibilities required by law. SHUT THIS WHOLE THING DOWN BY VOTING NO. TELL YOUR NEIGHBORS TO VOTE NO AS WELL.

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Michelle
4/26/2022 06:06:19 am

Thank you for your clarification, Craig. It's very much appreciated.

That said, I made no accusations against the Board, merely raised questions that many owners have with regards to the process. Having served as a Board member myself for four years, I can assure you I have first hand knowledge of how a Board can circumvent the CC&Rs, which was the primary reason that when my term was up, I would never consider running for the Board again.

Every owner is free to decide the merits of this project and cast their ballots accordingly. My only concern is they are being asked to do so with so little definitive information. When a Board states they will "figure it out as they go along" on a $5M initiative using borrowed money, at a time when interest rates are on the rise, using obsolete pricing.....yup, I confess that shakes my confidence in the whole deal.

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Joan
4/26/2022 12:20:17 pm

I must say, I find it very odd that one of the heads of this landscape project has an outstanding multi-year ALC violation themselves.
Yet they are heading up an ALC project of this magnitude?

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Kim
4/26/2022 02:34:22 pm

Very odd indeed, Joan. Maybe it's a quid pro quo arrangement. If this measure passes, perhaps all those nasty violations will be swept under the rug.

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Trevor M
4/26/2022 08:11:23 pm

You are obviously referring to CDAC spokesperson Diane at 67620 S Natoma Drive.

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Dave
4/26/2022 06:40:46 pm

In response to the latest 7 Phase sales pitch by the committee.

Step right up folks, get our special deals while they are hot and interest rates are historically low.

Nothing down and 15 years to pay. Don't worry the increase is only temporarily, since when is 15 years temporarily?

Only $33.00 per month extra for this project, UNTIL year 7 1/2, then... Who Knows? Trust us we will think of something!
(Oh yes! we do have other projects on the burner that we will spring on you as soon as the ink is dry on this one, we have a new patio for the restaurant, we have Spa updates, we have gym updates, we have security camera updates, we have pool maintenance, we have............and on, and on, and on.) And don't forget INFLATION hikes to your HOA dues.

So, by year 7 1/2, not including interest rate hikes on this loan, can you hazard a guess as to what the extra costs per month will be?

But I digress,
Professionally planned (ever heard that one before?) Show us your credentials.

No need to worry how high rates may go in the next 7 1/2 years our "Professional" experts have told us so.

Then the 7 facts, I think these are really alternative facts, (not facts at all).

NO PERSONAL LIABILITY. Then who is responsible for paying our bills?
ANNUAL INTEREST COST PER UNIT But only for first 7 1/2 years of this loan, after that.........think of a number and double it.
NO IMPACT ON FREDDIE/FANNIE MORTGAGES, Problem is, we are already locked out of them due to Board inaction on the problem.
QUOTE FOR CONTRACTOR. Shouldn't that be, QUOTE FROM CONTRACTOR? So still not final.
Quote for Commercial Loan. Shouldn't that be, Quote from Bank. So, still not final.
THREE BIDS. So, still not final.
SELL ANYTIME. After the "FREDDIE/FANNIE. No loans to Desert Princess buyers" is resolved by our Board's action on the issue.

I am sure, the committee and the Board have put a lot of time and effort into producing this plan.

The shame of that effort is that we have so many more urgent and pressing issues that need to be dealt with first.

The argument by the committee that we must hurry, and the rest of this sales pitch is insulting, is not reasonable, is not true, and is used by tricksters the world over to "close a deal" and is beneath them.

We have homeowners who cannot get their needed financing in order to keep their homes, this is, I understand, is due to the Board not addressing the issues that have caused it. We need to get the Fannie/Freddie accessibility situation resolved.

We need to do some long-term planning with regard to all our infrastructure, yes including the flora and landscaping. Including how that flora will be maintained and as Michael noted, we need to look at our water resources and budget them for future needs.

Piecemeal is not the way to go. Long term planning is the only way to go. We have people onsite who can do it.

Instead of that what we appear to have, is some people on the Board and on committees who feel that their own pet projects must be funded and brought to fruition ahead of what is best for the communities needs as a whole, and in direct contravention of their fiduciary responsibility.

Is the Desert Princess a community of the people, by the people, for the people, where everyone matters, where all are equal?

So, until all that required planning and prioritizing is done:-

VOTE NO



Reply
Sheri Lubow
4/27/2022 01:12:32 am

Hello


In response to the most resent post. It’s not just 33.00 a month , if you all have read the newest email from “community Design Committee” dated 4/27/2022, item number 2 on who we should “vote ye” clearly states “ANNUAL INTEREST COST” per unit is $117.00. So an additional cost to the 33.00 cost per unit. In reality that 150.00 per month per unit we will all be paying extra for this project. Keep in mind, you can be sure that come October the BOD will most certainly vote in another hike to HOA’s as they will find other reasons to justify a dues hike.

Reply
Leslie
4/27/2022 01:57:44 pm

Sheri, Dave, you are both so right. This deal is "a pig in a poke". And no matter how much lipstick the Board and CDAC try to put on it, it's still a pig in a poke.

Reply
Terry
4/27/2022 04:53:38 pm

Sheri, $33 x 12 months is $396. Of that annual amount $117 is interest and the balance is principal. That would only be true for the first 7 1/2 years after which the loan will be reset. That means ALL the terms of the loan will change including interest rate, monthly payments etc. We have NO idea of what the future interest rate will be as it has NOT been disclosed by the BOD. This is a financial time bomb. In order to vote on a loan the COMPLETE TERMS OF THE LOAN MUST BE DISCLOSED. JUST VOTE NO. TeLL your neighbors to vote no. This BS needs to stop.

Reply
David
5/3/2022 01:19:06 pm

We agree NO more BS vote NO!

Reply
Terry
5/3/2022 09:05:07 pm

Not a big surprise that the BOD has arbitrarily declared the "term sheet" from the AZ bank to be privileged information. This is the same BOD that sent on April 20, 2022 a letter to All Desert Princess Homeowners Association Members the following: "The loan will be a 15-year fixed rate term loan. Until the loan rate is locked in the exact interest rate cannot be known but based on an April 2022 quote from the Bank the interest rate is expected to be approximately 5% with a reset half way through the Loan term."

You may notice the above paragraph contradicts itself as the loan cannot be as described a 15-year, fixed rate term loan if it includes a reset (change of terms) halfway through the loan term. The BOD misrepresented the loan in the letter included in the Ballot Package in a manner that could be very costly to homeowners. Either that or the BOD doesn't understand exactly what a loan "reset" entails. Additionally the BOD has been very noncommittal about how the funds would be spent. We now know that the funds will be used for the landscape revitalization project AND other projects approved by the BOD. Hmm. Those other projects were NOT mentioned in the big push to sell this loan to homeowners.

The simple truth is the BOD is misrepresenting the terms of the loan and how the proceeds of the loan will be spent and what DP assets will be pledged as collateral. Homeowners being asked to vote to approve this loan need to know the whole story. The BOD declared the term sheet privileged simply to keep the homeowners in the dark about the hard sell being directed by the board to pass this misrepresented loan and where these funds will end up being spent. Vote NO and let the board know they need to up their game, including being honest with DP homeowners.

Terry

Reply
NOT PRIVILEGED
5/4/2022 07:04:34 am

The Board declaring the TERM SHEET to be privileged does NOT make it so.

IN FACT, IT IS NOT PRIVILEGED

Do not take my word for it, read the Supreme Court Decision on the subject.

"The seminal case on this is Bartnicki v. Vopper, 532 U.S. 514, 535 (2001), which stands for the proposition that even if the information was illegally obtained by a third party in the first instance, those who have lawfully received the information from that source have a right, under the First Amendment, to publish information gleaned from those documents that relate to matters of public concern. “We think it clear that parallel reasoning requires the conclusion that a stranger’s illegal conduct does not suffice to remove the First Amendment shield from speech about a matter of public concern.” Id."

Vote NO


Reply
Terry
5/4/2022 04:55:53 pm

Dear Mr. or Mrs. Not Privileged

I totally agree. If one were educated in America they would know that the 1st. Amendment to the Constitution guarantees the right of free speech. Canada has their own version. Free speech cannot be abridged by some attorney suggesting that something is "privileged." The Constitution is the law of the land and trumps any other policy, rule, or State law.

As far as anyone knows there is no allegation that anyone has illegally obtained privileged information from the H.O.A. This is simply an excuse to draw attention away from errant behavior by the BOD. They are involved in obfuscation of facts needed by homeowners to make an informed decision they are being asked to vote on. The H.O.A. seems to be confused about whose best interests they are dutybound by law to uphold. The answer is of course homeowners.

There is talk from the HOA about how landscaping could negatively affect property values at DP. The REAL impact on property values is the lack of available mortgage for those who would purchase DP property. The only way DP sellers could compete for scarce cash buyers is to reduce their asking price. Goodbye market values.

Terry

Reply
Michael Stark link
5/7/2022 10:46:57 am

HOA Governing Documents: Article XIV, page 43: Associations Right To Withhold Information.

Reply
Terry
5/7/2022 09:21:52 pm

So Michael, you are suggesting that the HOA has the right to withhold material facts including loan terms and how the funds from the loan will be spent from homeowners who are required to vote on this matter?

Good luck with that one. Are you by any chance involved in the used car business?

Reply
Dave
5/7/2022 03:43:59 pm

Michael, please give us the whole story, tell us exactly what you are saying, specifically, including all the details you withheld from your post, and why would you do that?

Reply
Michael Stark link
5/7/2022 10:50:56 pm

Terry, I’m not suggesting anything of the kind. I posted the above information as a way of getting everyone to READ their hoa governing documents on this matter and draw their own conclusions. I’ve grown really tired of people that can’t take the time to look at information, but they have no problem demanding someone else do their work for them. Just about anything that affects our voting rights, protocols, rules and regulations, etc can be found by logging in to one’s own account on Condo Communities. Lacking that source, one can also look at the hard copies provided to every homeowner when we purchased in Desert Princess. Sarcasm is not a good trait, Terry. We can find common ground and obtain all the facts we need to challenge or support the CDAC Loan Proposal. It just takes a little effort on our part rather than expecting someone else to take their hand and guide them through every step. We’re not children. Let’s start acting like the mature adults we think we are.

Reply
A good neighbor
5/8/2022 06:47:13 am

TROLL
2a : to antagonize (others) online by deliberately posting inflammatory, irrelevant, or offensive comments or other disruptive content.

Michael, a good neighbor, when seeing someone being assaulted would call the police, not give the person being assaulted the phone number for the police.

Here we have all the homeowners being assaulted by the Board and the CDAC

People just asking for help, perhaps some of them do not have your level of expertise and wherewithal to find that help.

People with a community spirit, who, in their time of need feel they can ask for help on this blog, which I believe, is why it was created.

Michael it appears that you did not get the memo, help thy neighbor as you would be helped.

Come on Michael, I think you can be a good neighbor, please share you best ideas and information.

But first,
Vote NO

Reply
Sarah Grey link
5/13/2022 04:45:58 am

Thanks for sharing this useful information! Hope that you will continue with the kind of stuff you are doing.

Reply
Lindsay
6/10/2022 06:59:24 am

Did everyone read the article on why we can't get a loan from F&F ? I have never read such BS !!!

Reply

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