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5/15/2022 45 Comments

Your Ballot for the $5 million Loan


 
The Blog would like to hear from homeowners that are in favor of authorizing the Board to take a $5 million loan.
 
For example:

  • Do you feel comfortable spending an additional $2.1 million above the $5 million?
 
  •  Do you believe that the only option is to spend $5 million over the next 18 months?
 
  • Are you confident that these funds are enough to address the 7 areas targeted by the Landscape redesign committee?
  • Do you know what we will be getting at the cost of $7.1 Million

  • Are you comfortable with the fact that the ballot did not specify that the funds will be used ONLY for landscape renovation?  Leaving open the possibility of using these funds for other purposes.

The Blog would like to hear your thoughts?
45 Comments
James Taylor
5/15/2022 08:06:25 am

I believe the whole idea has to many loose ends not put together well will cost nothing but money with no returns.

Reply
Nadine Lange
5/15/2022 09:22:29 am

I do not want to spend additional money for no specific details.

Reply
Kathy Rogers
5/15/2022 09:37:04 am

Yes - I feel very comfortable voting YES on the revitalization plan. It is economical & badly needed. I urge everyone to vote YES.

Reply
Summer
5/15/2022 11:35:48 am

Hi Kathy, I am interested to know why this $5 million + expenditure is badly needed right now? With a price tag of over $2 million in interest? Desert Princess is an absolutely beautiful property and I fail to see the necessity for this overpriced project at the height of inflation for an additional $33 a month in homeowner fees with an interest rate that will have to be negotiable again in several year which is a big variable which most homeowners don't realize.

As a full time homeowner who exercises and golfs daily throughout this community I can positively say that this is a well maintained and pretty property overall. I've lived and golfed at many other clubs in this valley and this is a very spectacular and clearly respected course. I fail to see the logic in this urgent and aggressive push by the board for this project. If we look logically at the most critical issues that should be addressed first and foremost like Desert Princess continuing to be (and likely permanently, according to reliable financial sources) on the "Do Not Loan" list with Fanny Mae/Freddy Mac - this alone could very adversely affect our property values, which should be a critical concern for everyone here. Broken/old sprinklers, bumpy roads, pools that need resurfacing, sand traps that need improvement, security issues and a financially losing clubhouse among the most critical areas to be identified, I believe these should be addressed first as a priority versus such a large expenditure.

Although I applaud the gumption of the board to even pursue a project such as this in our current difficult and historic economical crisis, this is not the time to push through a massive spending project with a reduced quorum which means a small minority of homeowners can make this significant decision for all of us homeowners here.

I urger everyone who owns here to learn all of the facts before voting.

Reply
CM
5/15/2022 12:03:39 pm

To Summer,

Well Said.

Cathie Wachter
5/15/2022 10:51:01 am

Remember this is a 15 year loan and here is what the experts say...

Jerry Goodspeed, a horticulturist from Utah State University, says the typical lifespan of a landscape is seven to 10 years. In the first five years the landscape plants fill in their assigned area. But after 10 years, plants can outgrow their space, and crowding can become a problem. Evaluate each plant individually.

Landscape Management – Don't leave it to chance ... A rule of thumb – the useful lifespan for large shrubs or small trees is 7 to 10 years.

Shrubs. The usual lifespan is 7 to 10 years, though well cared-for varieties have been known to live much longer. Many horticulturists believe that shrubs aged 15 to 20 are candidates for swift and sudden death, so if you have older shrubs be aware that they could suddenly decline very quickly and need to be replaced...

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Joyce Fowler
5/15/2022 11:32:41 am

I am not comfortable with this project and the 5 points you mentioned above. I am also not comfortable with raising the Hoa dues. They are high enough.

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Whitney Baez
5/15/2022 11:43:34 am

Why do we need a loan? Paying in one or a couple of payments should be an option. That way we can earn interest and pay as we spend. With the economy in its current state of crisis this should be placed on hold.

Reply
Debra Blair
5/15/2022 12:24:15 pm

I have already voted NO. This is a WANT and not a NEED!! Stop spending money we don't have. How about this NEED: being able to sell or refinance our homes and and lender will lend in this community!!! vote NO!!!!!

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CB
5/17/2022 10:56:04 am

Spot on Debra!

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George
5/15/2022 01:06:20 pm

I agree with Summer.. very valid points. I am so taken aback when I ask other homeowners how they voted and they say yes..
Who is drinking the Koolaid now? I am scared and very nervous to give this particular board headed up by Peter Webb any money to spend,spend,spend.
PLEASE IF YOU HAVE NOT VOTED, VOTE NO!

All our futures here at Desert Princess are at stake!

Reply
PPM
5/15/2022 03:32:21 pm

I don’t understand why any residents would vote yes on this project. The board members, less the two intelligent ones, have zero integrity in the eyes of many. Those few board members are hiding behind the revitalization committee, and given a yes vote will spend this money how they (PETER W) want to.
VOTE NO!

Reply
Felicity
5/15/2022 04:39:31 pm



I thought hard on this. We have just had a HOA increase to 710.00 which to me was an outrageous increase in one year. We all know it will go up again as it does so every year. I know others feel the same way about these increases. Idk I’m feeling a little upset about this whole thing. The gardens and landscaping look really great to me. Maybe you guys should be spending money on the right things. eg …security …Theft of pool equipment ??! Golf carts …How does that happen. I’ve also seen some fake pictures claiming how certain gardens are looking, I know the pics are old pictures. Hmmm … what’s going on … There should be enough money in the landscaping budget. Or maybe funds are being used incorrectly?!
Maybe been misused???
Was this an overnight decision! Wow it’s only 5 million … uh no …definitely a no vote

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Dolores
5/15/2022 04:45:08 pm

This is not a need, only a want. I think the property looks fine. I would think the many landscaping employees we have at DPCC could take care of the need for plant replacements. I’m a full time home owner, do not play golf or take advantage of the other amenities available here but enjoy the security of a guard gated community. I do not want HOA fees increased for this project, prefer updating the clubhouse.

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Paying for long dead plants for the next 15 years
5/15/2022 06:30:22 pm

If passed this would cost us all over 2.5 MILLION IN INTEREST ALONE, nobody knows what the final figure would be.

$2,500,000 plus, in interest alone, still paying for long dead plants for the next 15 years, you cannot make this stuff up, it is a horror story
of epic proportions. I cannot believe that anyone will be stupid enough to vote in favor of such a scheme.

I will vote NO.

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Tom Rosa
5/15/2022 08:07:20 pm

Plan your work and work your plan is a motto I live by. This $5MM proposed project has NO defined plan or price tag accordingly. It's all a best guess at this point. There are only two outcomes for the homeowners, 1) We get far less for our money as labor and material increases annually. 2) Like all vaguely scoped projects it will cost far more than the $5MM they claim. Inflation is currently is 8+ % is there an escalation assumption in there budget? If so what is it ?
I cant say this loud enough, VOTE NO ! The board has no idea how to plan and execute that plan. I have been doing projects like this for 30years. They have no idea what they are doing. VOTE NO !

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Michelle
5/16/2022 12:45:28 pm

Tom, all your comments on this blog are valid concerns. You question whether or not the Board's budget has an escalator assumption. My question is "What budget?" How can you possibly have a budget when you haven't received any bids for the project? Prices are rising daily, interest rates are escalating monthly....the CDAC is clearly in over its head. Unfortunately, we are being asked to fund their project with less information most would need to purchase a new car.

Their refusal to release the Loan Term Sheet on multi-million dollar obligation WE collectively are required to repay over 15 YEARS, is inconceivably irresponsible.

7 years ago, the entire Board was subjected to a recall action for a monthly dues increase they failed to comprehensively justify to the community. I was a Board member at that time, mortified my integrity had been called into question, but rightfully so. The Board had failed to openly and honestly communicate the rationale for the increase to the owners.

The magnitude of that Board failure pales by comparison to this current situation.

To borrow millions of dollars for what has been accurately described as a "plant swap" is incomprehensible to many owners and rightfully so.

Tom, you said it all.....VOTE NO!

Reply
Saulius
5/16/2022 09:07:50 am

If every homeowner at desert princess spent $33. per month on plants for a year for their area cost would be about $400. and we would be done with updating. What the heck is this 15 year plan but a over the top beaurocratic waste. Cut down the dead or dying trees and those that look ugly and fix our streets as they are looking tired. All the rest is unnecessary extravagance just plain smoke and mirrors. Please vote NO our HOA fees are high enough allready.

Reply
Terry
5/21/2022 03:01:01 pm

The BOD, by their actions will impact our personal credit ratings by hanging a 15 year debt around our necks for a completely ridiculous reason. And, by their inaction will continue a situation that will deny DP homeowners the ability to have residential mortgages available to access their equity or sell their property here at DP. Does the BOD have any respect for homeowners or their fiduciary duty to homeowners? The answer is NO, just like my vote against their proposed ridiculous 15 year debt. This BOD must be reigned in as they are out of control. Stop dreaming up ways to spend OUR money and take care of REAL issues that we are all aware of.

Reply
Summer
6/3/2022 02:59:52 pm


Further to your comments Terry, the recent BOD meeting minutes stated that they have received a final report on the DO NOT LOAN issue and it appears they will not be pursuing any additional avenues to assist us homeowners in this critical matter. Knowing this, And how it will affect homeowners’ ability to re-mortgage or access equity in their properties, why would anyone vote to proceed with this insanely expensive landscaping project? It is not financially responsible at this point in time. I would hope logic and common sense will prevail and this overpriced proposition will be defeated, but due to the rules changing and the decreased quorum required I’m certain we will be saddled with these extra monthly HOA costs in addition to new increases again in October. We have some of the highest costs in the valley already. Why can’t this board exercise fiscal restraint and responsibility instead of consistently raising our costs as homeowners? Now is not the time for commencing this massive expenditure.

Reply
mark
5/31/2022 04:51:22 pm

When we bought our condo just under 2 years ago we spent $3000 to update the landscaping on our end unit because it had been allowed to deteriorate. What will happen now with the landscaping we installed if the new plan is approved. Will everything we just had installed be removed and new items put in?

Reply
Are We Next?
6/1/2022 04:46:48 pm

Mega drought Declared!

Which raises the specter of a much more serious problem than the revitalization proposal by the CDAC and the Board.

We can certainly change the landscaping throughout the complex as plants fail due to a lack of water, no need for mass renewal, makes no sense while plans are still living. The cost would be covered ongoing by our existing landscaping budget.

No, the specter is the grass around the complex and much more importantly to some, the golf course itself!

First order of business, cancel all thoughts of doing anything with regard to the revitalization proposal until a complete analysis of the all said problems, after all was it not shortsightedness that has gotten us into this position. Yes, even though it was 5 years in the planning.

We accept that as fact, not who was to blame, but how best to proceed from here, without haste and without borrowing multiple millions of dollars that we do not have the ability to repay. A new mindset is required with input from all. If that premise cannot be accepted by those currently tasked with doing the job, then that problem would need to be addressed first.

So First, Vote, not approve, on the current ballot question.

Now, Some serious thinking is required, Not in haste, the sky is not falling tomorrow. But address it we must.



Reply
Michael Stark link
6/2/2022 12:46:59 pm

I've never understood why so many people wait until the last minute until they do something that they KNEW was coming. It's only when people are at the precipice do they finally take action or panic. Southern California, not just the Coachella Valley, is in a DESERT. Ornamental lawns should never have been allowed in the first place. Now that we are forced to take action, we have to deal with the added costs of removing the turf around our "common areas" and replant with drought tolerant plants, rock and gravel. Mark, if you upgraded your condo with the hoa approved drought tolerant landscape you should have nothing to be concerned with. Please folks, READ the information listed in the communications sent by CDAC. This is not the time to panic, but to use rational, measured and calm thinking to solve these problems. We can continue to make Desert Princess a beautiful place without letting plants and grass die and fixing it piecemeal.

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Leslie
6/3/2022 09:22:35 am

So Michael, I agree. Piecemeal and incrementally definitely is the way to go in which case a milti-million dollar loan is unnecessary, right?

Reply
Michael Stark link
6/3/2022 01:31:56 pm

Leslie, Please READ my statement. I never said we should do it piecemeal. I said, "We can continue to make Desert Princess a beautiful place WITHOUT letting plants and grass die and fixing it piecemeal". Please don't spin my words to support your agenda. BTW, have you run the numbers and time involved to do it the way you are advocating? Completely impractical.

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Not Bamboozled
6/3/2022 05:10:40 pm

The CDAC has shown us:

That anything they have to offer is totally worthless,

by their collective stupidity, in proposing taking a loan for $5 million, added to which they would have us pay an additional $2.7 million AT LEAST in interest, for a total indebtedness of AT LEAST $7.7 million and propose and endorse a contract without ALL details being finalized before signing, when there is absolutely no need to do that.

So, Michael, you advocating that "Please folks, READ the information listed in the communications sent by CDAC" and allow the CDAC to further bamboozle us with their crazed thinking tells us exactly where you stand.
verb (used with object), bam·boo·zled, bam·boo·zling.
to deceive or get the better of (someone) by trickery, flattery, or the like; humbug; hoodwink (often followed by into): They bamboozled us into joining the club.
to perplex; mystify; confound.

Do not be bamboozled, vote NOT APPROVE on your ballot and bring sanity back.

Reply
Terry
6/5/2022 11:29:23 am

I have a good and quite intelligent friend who believes the reason for the largest number of voters sending in their ballots in over ten years here at DP is NOT because voters are enamored by the 7.5 million dollar debt proposed for a ridiculous plant swap, but rather by their anger over the BOD'S attempt to bambozzle them with false information and mistruths. When voters are comfortable with the status quo they have a tendency to not bother voting. We have a large number of voters according to the inspector of elections so we shall see. I believe my friend is correct.


Our next HUGE challenge will be legally forcing our BOD to change our legal struction to allow DP homeowners the ability to once again have residential mortgages. The elimination of ALL RESIDENTIAL MORTGAGES is too steep a price to pay just so the BOD can continue to have a private club house. The financial damage to homeowners caused by the BOD'S refusual to act or even disseminate the actions required to get DP off the "no loan list" is enormous and certainly not in the best interests of DP homeowners. The BOD, by their radio silence on the Fannie/Freddie "no loan list" have signaled their intent to do nothing about this pivotal issue. It will likely take legal action to re-educate the BOD on who's best interest they have a fiduciary duty to protect, which of course is DP homeowners.

Reply
Caroline M
6/5/2022 01:59:10 pm

Terry, very well said. You should be on the board.

Reply
Leslie
6/6/2022 07:45:18 am

I totally agree, Caroline. Terry would definitely offer the leadership we're sorely lacking....leadership that has the ENTIRE community's best interests at heart. Happy E-Day to all! Win, lose or draw, this blog has been invaluable to the residents by informing, promoting the exchange of thoughts and ideas, all of which contributes to the strength and success of Desert Princess.

CB
6/5/2022 05:04:47 pm

Terry, I couldn’t agree more. #1 priority should be getting us off the do not lend list. DO WHATEVER IT TAKES! Not all of us own other homes. For some of us DP is our year round, primary and only home. Being unable to access equity or refi MATTERS to some of us. Why are we not represented? Don’t we pay the same HOA fee??

Reply
What If?
6/5/2022 08:54:04 pm

What if, Instead of legal action, we recall and replace all those members of the Board who voted for the ballot proposal to borrow $5 million and swap plants and then replace CDAC in total.

We would then elect new Board members, with nobody from the current CDAC and none of the current Board who voted for the $5 million loan. Electing level headed people with honesty and capability to replace them.

Would you support that proposition?

Please reply:-


Recall and Replace.


OR

Keep.

Reply
Leslie
6/6/2022 11:20:22 am

It is somewhat pre-mature to discuss what-ifs. The appropriate time to look at options is if the YES votes prevails.

Desert Princess owners tried and failed to recall the entire Board 7 years ago. In this case, based on all the evidence that has come forward in the past few weeks, a legal challenge may not only be warranted, but could provide the best recourse for the majority of owners to obtain redress for a result steeped in obfuscation, a misleading commentary and a loan they committed us to for 15 years, at a time we are headed into spiking interest rates, unprecedented inflation, a crippling drought and no real plan other than the Board" winging it" as we spend these borrowed funds. In 5 hours or so, we need to make a decision, not before.

Reply
Terry
6/6/2022 04:35:37 pm

Dear "what if,"

Out of 794 total votes, 599 were cast AGAINST the bogus plant swap boondoggle that would have cost DP homeowners $2.5 MILLION in interest costs alone. I believe homeowners have a pretty good idea of how little respect the BOD has for homeowner's best interests including the BOD'S outright refusal to address the F/F no loan list. We will likely need legal action to recapture our ability to access our personal home equities with residential mortgages, which is of course absolutely in the homeowner's best interests. Not that the BOD cares about our best interests. I think the desert princess blog is a powerful instrument that will assist our current board to shape up and take their fiduciary responsibilities seriously. We will see.

Reply
What If?
6/6/2022 07:08:07 pm

Thank you Terry,

I have seen many of your responses to questions posed on these blogs and generally speaking I agree with your views as published.

However, I do not see any potential for the Board to learn from the views of homeowners published on these blogs or to change the way they treat homeowners, which is with contempt.

That Board defeat was a victory for homeowners but remember it came at a cost to homeowners. What did it cost
to have that vote, 3 or 4 thousand dollars? if anyone knows please tell us.
Were there any other costs associated with that bank loan we are not yet aware of?

My point being, that understanding who we are dealing with and knowing their history tells us this is not the end of this story. We have a Board that did not and is not acting in the best interests of all the community. A Board so out of touch that they had the gall to force us, at our expense, to vote on a totally insane proposition. Remember they stacked the deck in their favor by changing the quorum, thinking it would help them win.

That tells you all you need to know about how dishonest they are.

What has the Board done about the no lend list? This is a very important issue that not only needs addressing but must be solved to our satisfaction, which is our removal from that no lend list. Failure to do so is not an option.

We need a new Board, with people who will consider all others above themselves and be inclusive in our community.

Considering the potential outcomes to a legal challenge would still leave the same people pulling the strings against the wants and needs of the community. Am I wrong? How would you see that play out?

Reply
Terry
6/7/2022 08:45:43 am

What we, as users of "my desert princess blog" have achieved is to alert homeowners to the fact that our elected leadership seems to have little respect for homeowners, and even less respect for their duty as leaders to operate in the BEST INTEREST of DP HOMEOWNERS. This achievement is hugely important. At this point, after a very substantial win on the vote ( 599 against, out of a total vote of 794 ) our board is on notice that we have taken an interest in how they are operating and are not exactly pleased. They will remain under our scrutiny to insure that they follow the law and respect homeowner's rights.

We now have an even more important issue to address which is to get off the no loan list by F/F. The legal structure of DP must be modified to remove the financial obligations such as food service shortfalls falling on homeowners
which are not customary to residential mortgages and why we no longer have residential mortgages at DP. Changes will need to be made that will not make everyone happy but will absolutely be in the best interests of DP homeowners by removing liabilities from around their necks and allowing residential mortgages once again. The loss of mortgages is a substantial financial blow to DP homeowners. The board needs to recognized that homeowner's best interests are at stake here and act accordingly. There are options available that may or may not involve change of ownership of the restaurant. We will also need to limit the number of short term rentals at DP if we are to have residential mortgages available again. That is a requirement of mortgage underwriters, not DP. The point is, it can be accomplished. That is our challenge at this point. Trying to remove the board is not in the best interest of homeowners, at least not now.

Reply
Michelle
6/7/2022 09:57:08 am

What if? While none of us, except the Board have exact numbers on what the landscape proposal cost, the Board informed us that the Peter Webb recall ballot cost homeowners $10,000.00 so there is no reason to assume this ballot cost anything less. We definitely have sundry expenses that have been incurred for this project.....two Townhalls offering food and beverages to several hundred attendees, any bills incurred for professional consultations and a Loan Origination Fee of $1500.00, a fee which is typically non-refundable.

All that said, I agree whole-heartedly with Terry that a total Board recall is not the answer. What we need is access to the two opinions the Board paid for to determine why we are on The Do Not Loan list. Once we have that, we can determine the course of action we need take to reinstate our community to one where owners can access their equity and/or market their properties with confidence.

Reply
Mary Maloney
6/7/2022 09:45:19 pm

I find it funny that this board put out so much rhetoric about the cost of the recall yet spent the money for a community wide vote on this project very easily. As a Realtor with clients trying to sell their properties currently in the community, NOT being able to obtain a conventional loan for the condos is a REAL ISSUE. This board has known about this issue for YEARS! Fact. They did nothing about it and now that we are officially on the DO NOT LEND list, they want to throw up their hands that there isn't anything that can be done. Seems that it plays right into the hands of those that want to convert our community into a private club......just saying. Seems all too convenient. There are many private clubs in the valley, I am happy to help you buy there. THIS IS A RESORT COMMUNITY, built to be one, needs to be one.

Judge
6/7/2022 08:26:02 am

Why did we hire a management company?
The DDCC was running fantastic with real homeowners running our community.

Reply
Terry
6/8/2022 11:18:58 am

Well said Mary Maloney. The private club concept needs the economy of scale we lack at DP. Example: An onsite restaurant that caters almost entirely to DP owners cannot survive the 6 month period annually that those owners are absent. The restaurant throws off huge losses that are picked up by homeowners which raises their costs of ownership. As mentioned, DP lacks the economy of scale large clubs have that keep their individual costs low. It is a cycle that does not improve over time. The money spent on losses such as this example could be better used for making actual improvements to DP. This is lost opportunity. Unfortunately DP leadership will go to any lengths to keep their club house so they champion this type of operation. This will eventually lead to complete failure. We homeowners are tired of paying for a private club house used by a minority of owners.

Reply
CB
6/8/2022 12:37:59 pm

Agreed Terry. DP could have just as nice AND profitable restaurant, patio and bar area IF we were able to make the changes needed for that to happen. It is not rocket science. I addition to having part of my (and all homeowners) HOA fees not purposely subsidizing a losing concern, I would love it if the food was better, and the atmosphere upgraded. As a year rounder, I would love to go to over for a beer and something to eat (oh, 90% of the repetitive menu is fried, beef or pizza) , maybe play pool (oh no pool table), hang out with friends (oh, none of my DP or external friends want to go), watch a basketball game (oops go Celts!), etc etc....currently I am paying for: food I cannot or won't eat, in a room that looks like the dining hall in a nursing home. WE DESERVE BETTER and all the HOA fees that pay the annual shortfall can be used for some of those "tree replacements" and much needed garage utility upgrades (oh yah - take a look at the electrical boxes for the condo garages!!! - frightening and potentially unsafe and maybe not up to code?)

Reply
Leslie
6/8/2022 02:04:15 pm

Minority appears to rule on many aspects of how our money is spent these days.

Take for example the gym project. Rather than perform a true audit of how many owners utilize it by a PHYSICAL body count, Management Trust sent out a mickey-mouse owner email survey. The problem with that is parties with "skin in the game" could respond multiple times, thus skewing the results.

At no time were these results released to the owners before the Board, in a recorded vote, voted 6-1 in favor of approving a $30,000.00 expenditure to have an architect draw up plans for this folly. I'm sure we can all connect the dots that this is a done deal, a project that will cost us at LEAST $400,000.+ , in a seriously uncertain economic environment.

These decisions do not inspire confidence in our leadership.

Reply
Lindsay
6/8/2022 02:28:24 pm

Vote this BOARD OUT!!!!!

Reply
Michael link
6/8/2022 02:40:46 pm

With regard to the problem of available water and restrictions/prohibition now and in the future, what should we do now?

Reply
Leslie
6/8/2022 03:42:35 pm

Swap out the plants as we can afford to from our reserve fund? Maybe the driving range could be left to it's own devices and perhaps piecemeal remove grass as we can afford to do so.

Reply
What If?
6/8/2022 04:26:21 pm

Driving range? what if we stopped watering it? Just let the grass die, why does it need to be grassed? No need to replace the grass, its a driving range!

Reply

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