Sunday, November 14, 2010

HOA board to Palermo homeowners: Pay us $324 more per year in fees. When was this decided? UPDATE: Details about the little-known board meeting

Positively Palermo received word this weekend that the HOA board has increased the annual HOA dues by $324 per year. This means that the monthly HOA fees per unit will increase to $268 per month from $241 per month. That is an 11.2 percent hike. The "2011 Budget Notes" letter from the HOA Board of Directors dated November 15, 2010 (tomorrow) began arriving in mailboxes this weekend. Alarmingly, there was no indication as to when the the board made this decision. Everyone looks forward to HOA board explaining the process and reasons for the $324 per year increase to homeowners in these tough economic times. Miss Penny Lane says: She will need to do even more belt-tightening and wants to know how and why this came about.

11/17 UPDATE: Thanks for your postings, Positively Palermo can report that indeed the HOA board held a meeting on increasing our HOA dues at 1:30 p.m. Thursday, Nov. 4. The afternoon meeting time and the day of the week deviated from what usually is done. The apparently short meeting also wasn't in the clubhouse as is usual. The meeting was conducted by telephone. No phone was set up in the clubhouse. The agenda did provide a call-in number but didn't mention this was a telephone meeting only nor that there would be nobody at the clubhouse. The lack of notice for this unusual — and apparently quickly scheduled — meeting also is a concern of homeowners. There was no e-mail or Facebook notification, and agendas weren't taped to the mailboxes — all past practices that homeowners have come to rely on and expect. Apparently, someone had time to come to Palermo to put up an agenda in the clubhouse display case but then did not tape the agendas on the mailboxes, as they've done before. Miss Penny Lane says: Seriously?

55 comments:

Anonymous said...

What? I never got anything about this prior. Was there a meeting and prior notice that went out. It is the HOMEOWNERS assn, right? I watch this stuff and never heard a peep.

Anonymous said...

HOA Facebook Page doesn't talk about an HOA fee raise, are u sure this is happening? When does it go in to effect?

Anonymous said...

Really? I'm on Brandi Scott's of Desert Resort Management email list and I got nothing about a fee increase or meeting about it. Brandi is certified by a professional association and has standards. So I would be surprised if an increased went in this way as she has professional ways to deal with this. I'll wait to I get this for myself. Please don't put stuff that's not verified. DRM has professional standards.

Anonymous said...

We got a package too, the dues are going up, so a surprise in that it happened without notice but that's what we'd maybe expect at this point with all of it.

Anonymous said...

Hi everyone. Been reading these comments. I know a board member personally who runs the Facebook page and encourages people to signup to get announcements about hoa board meetings and other important news so I don't think this is true . Just rumors and such. Charging more for the fee would be a big meeting and not just let slip through. I have more faith that it would be done the right way.

Anonymous said...

Actually they HAVE been talking about it for a while now at the HOA meetings. Very few people every show up. How can you not show up to the meetings (that are intended to keep us informed) then get upset that you do not know what is happining. Sort of like objecting to the politicians and never voting. If people would get more involved then they would not get suprised. This is not meant to be sarcastic or mean just the way I see it

Anonymous said...

Why not cut costs? The pool lights are on now in broad daylight. Is anyone watching over this stuff?

Anonymous said...

I think the break down is that people are voicing their concerns in the wrong direction. I have talked to Brandy before and told her about a problem and she generally gets it done fast. A lot of times she is not aware of the issue. Forget whether she should know or not, someone needs to communicate it to her directly either by email or call her. So in my humble opinion if you see something wrong let her know.

Anonymous said...

I agree very people attend the meetings of this board but you have to ask, why? People tired of being shut out or given non-answers.

Wanting to contribute said...

You can't show up at a meeting if you do not know about it. There was a small notice posted at the Club House about a November 4 board meeting but none of the usual email notice from DRM or notices on the mailboxes as is usually done. And nothing on the FaceBook page. Seems like we were not wanted there since the only agenda item on that notice was the HOA fee increase. I would have shown up for that meeting if I knew about it to help with ideas of how we can cut costs.

Anonymous said...

Higher fees are a reality of HOAs. The Board should build-in a 1% dues increase each year in order to keep-up with the increasing costs of maintenance, utilities, repairs, etc. That way, owners know the increase is coming and can budget for it. It's either a regular increase or periodic dues increases OR the board could assess a 'one-time' fee to cover things like painting, pool repair, fencing replacement, landscaping replacement, etc.

Anonymous said...

It seems to me complaining about $324. per year increase in HOA dues is small potatoes compared to the $3544.04 each owner owes in addition in deficiencies.

Anonymous said...

Sorry for the question here. What is the "addition in deficiencies"?

Anonymous said...

What? The dues are going up? No one notified me in advance. Why do we need to have Penny tell us everything????????

Anonymous said...

"Very few people" attend the HOA meetings because some stopped going because of their treatment, such as being cut off by management. The board put out agendas that limited homeowner participation in the meetings, saying the meetings are for the board and that it can't listen to people for for more than a few minutes because it would take too long, when that is bogus because not that many people even talk. Now, the board or its supporter use the idea that "few people" attend to justify increasing the HOA dues, when they are the cause of some people not going. They want it both ways. It also doesn't help when the agendas sent out by email have never said an HOA increase was on the table. This is no way to run an association or a business.

Anonymous said...

Why are people saying the board held a meeting on November 4th when there wasn't an email notification or agenda on the mailboxes as per usual? November 4th was a Thursday and the board normally meets on a Monday. I don't believe the board would do this to us (hide a meeting, sort of thing).

Anonymous said...

Because there's reliance on the email meeting notifications and mailbox postings, as has been the pattern and practice, and that didn't happen, is the fee increase Kosher?

Anonymous said...

Wasn't it noted here that renters pay the HOA fee via their rents (HOA fees included in the total rent) so I guess the rents will be going up because Enterprise or other owners aren't going to just eat that expense.

Anonymous said...

Well, there is that (referring to rental unit auction potentially reducing HOA fee income). Assessments MUST increase if the units are not sold to owners. With fewer owners to pay the HOA fee, the remaining owners must cover the rising costs of maintaining these wonderful facilities. It may be that if owners don't want to pay higher fees, that they consider cutting back on expenses and amenities--e.g., heating the pool(s) and spas, providing daily landscaping support, cutting-back on security patrols, eliminating or reducing environmental lighting. There are ways to reduce the expenditures. Of course, if owners love the amenities, they're gonna have to pay. I've always thought the $241 owners pay is relatively low compared to other Palm Springs area associations. I've seen fees as high and $1,000 for some associations in the area.

Anonymous said...

In response to the last post about some complexes having $1000 HOA dues...I can tell you that those places dont sell! 43@Racquet Club which is just down the street is only charging $126 per month for HOA. the higher the HOA the less desirable Palermo will be.

Anonymous said...

I as a homeowner attend the meetings because I read the Agenda on a monthly basis posted at the clubhouse. I have been following HOA management since I have some free time and have come to realize that some of my gripes I had before attending the meetings have been resolved when I further educated myself. The Management only has to post 1 notice on the property and only has to give each owner 3 minutes maximum to speak in open forum. For the very reason that some uneducated homeowners who ask the same ridiculous question (Just as I used to) over and over when they don’t get the answer they want. There is an Association website that is updated regularly but if you don’t sign up for it you don’t know about it. Brandy has always offered to email myself the Agenda if I want it and it helps me because I get to follow along at the meeting or when I call in to the meeting via conference call. I think that people need to learn more about how HOA's run before we all assume that it is supposed to run like an Apartment Complex (I thought like that before). If you don’t ask for what your looking for then you probably wont get it! Take an HOA educational class provided by our very own local Community Association Institute in Coachella Valley or visit the Davis Stirling website. It can pretty much answer all questions you have about the legal process.

--Herb

Anonymous said...

Anyone want to vent about the situation we find ourselves in here in Palermo? A KESQ van was out in front of the clubhouse interviewing people about 15 minutes ago.

JBK said...

As an owner, I try and limit my complaints because I love our community and because I don't live at Palermo full time and therefore am not as in the loop as I should be.
I understand the need for an increase in HOA dues given the increased costs of utilities, etc. If we want the community to look good, it is going to cost some money. Having said that, though, I am a little taken a back as to how this was shared with the home owners. Even the packet I received today didn't have any explanation as to why the dues need to be increased so significantly. I think a better way to have handled the situation would to have had a cover letter stating, "While we don't want to raise the HOA dues, it was necessitated by the fact that..."
Please just keep the lines of communication open!

Disappointed said...

It gets worse, not only did the board hold the meeting on an unusual day for our board meetings (on a Thursday- a first ever), they had it at 1:30 p.m. instead of the normal 5:30 p.m. AND THERE WAS NO EMAILED NOTICE OR AGENDA. The idea, as one person wrote, that "The Management only has to post 1 notice on the property" might be lega,l but is it really how we want to operate as a community? No. Also, because management has said it would email notices and put them on mailboxes and on the Web, homeowners have come to rely on that and have the expectation that this is how meeting notifications occur, once this happens the rules change in term of the necessary and proper notification. I find it hard to believe that anyone not connected to the board or management could seriously make the argument that what was done was OK. We also must remember that the current board campaigned on pledges of opening lines of communication and then this has happened. It's a real blunder.

Anonymous said...

Actually, to the 4:22 poster, it get even worse than that. I was told by someone who tried to attend that the meeting wasn't even at the clubhouse, where it normally is. The meeting was only done by phone and the agenda didn't say that that nothing would be set up in the clubhouse to listen there or that nobody would be there. The phone meeting apparently also didn't last that long.

Anonymous said...

I also want to say a huge thank you to Miss Penny Lane. Without this site, we'd have no good way to communicate and share opinions, and I feel really lousy about the management here after this situation but it does cheer me up to know we have a means to talk and that someone has taken so much of her time, effort and probably money to help our community like this. Miss Penny Lane is one thing that makes Palermo so special. I suggest in the future it anyone tries to pull this again with the meeting, that anyone who sees an agenda, please email Penny right away. I never go to the clubhouse or fitness room, so I'd miss any notices. Have a good evening, everyone and don't get discouraged!

Anonymous said...

To the person who wrote: "Assessments MUST increase if the units are not sold to owners. With fewer owners to pay the HOA fee, the remaining owners must cover the rising costs of maintaining these wonderful facilities." Well, not really. You have to remember two key points: 1) The Palermo "Enterprise" units are rented out and the bank-appointed agent promises that the HOA dues will be paid. 2) Even if the fees weren't paid every month, once any bank owns a condo through foreclosure, the HOA fees are paid upon a sale. That is one reason the Palermo HOA budget is still bringing in the budget revenues forecasted. Every month we get a big check for unpaid dues because a property has sold. There have been so many sales since July that the HOA has been getting lots of big checks. The real concern about unpaid HOA fees is when the deadbeat owner still owns the place because it's harder to get that money from him. But regardless of all, it has no bearing on what/how the HOA did what it did in this manner.

Anonymous said...

This HOA increase was a complete surprise in today's mail. I wish I had the chance to provide my thoughts about containing costs.

Deja vu said...

I remember when things first went south for Enterprise and there was no communication. They resigned from the board and there was no communication. It felt like homeowners here just didn't matter to them. Deja vu.

Anonymous said...

Is it correct that to date none of the board officials have responded about the jump in the HOA fees, how it came about and the meeting no one seemed to know about? I'd like some answers. Thanks in advance.

Anonymous said...

LOL. My guess is that the board officials are posting here. Right, "Herb"?

Anonymous said...

The good news regarding the manner in which the board decided (after much discussion, by the way) to raise fees, is that folks are talkin'. Now if the talk turns to action by service on the board and in other vacant committee positions, then all of this rancor, ignorance and vitriol, will have mattered. I agree with Herb, folks need to educate themselves regarding the association's finances and other aspects of the association. For example, where are the painters? The painting started and now is stopped--why? I suspect the reserve for this maintenance item is kaput! Could the raising of fees have to do with the HUGE costs of painting and other rising costs of maintenance? The Board did what it did, the way that it did (and it was all legal, maybe not appropriate) to expedite the action WITHOUT a lot of frivilous discussion, which often leads to inaction. The financial needs of this association must be addressed quickly. That's what the board did, and I applaud them for their "uncompensated" service and work to keep the association solvent. Thank you Board members. THANK YOU.

JBK said...

Maybe I am making a wrong assumption but isn't the paint work that is going on a warranty issue that DWJ is covering. I know that I am out of the loop, but I am making that assumption because the community has been around for less than 5 years and that DWJ is doing the work. However, the 10:14 AM post talks about HOA monies paying for the work that is being done. Really????

TundraTabby said...

I've looked at the budget that was mailed. The biggest increase in spending is for the reserve fund, up $18,309 from last year. The other larger increases are for gas (up $10,000), Refuse collection (up $19,500), and electricity (up $6,008). Legal fees and bad debt also increased a bit, which makes sense based on the current economy. Landscaping is down $13,517. By far the biggest chunk of the monthly dues of $268 goes toward the reserve fund, or just under $80. Our biggest utility is gas/electricity (about $40 of the dues each month), but I suppose that is the price we pay to have warm pools and spas.

Anonymous said...

I was surprised to find we're being hit with an 11 percent increase with no explanation.

Anonymous said...

So someone writes that "very few" people go to the board meetings and participation is wanted, but then they say homeowner input is dumb and "frivilous" and uniformed. There was no pressing emergency to say the fees and an open process could have been followed (and should have been). The silence of the board members speaks volumes - except for their probable anonymous comments here (Herb). They are hoping it all blows over.

Anonymous said...

The board and DRM have said the repainting is not coming from reserves or other HOA funds. The painters were here this week doing touch up. They aren't supposed to be finished with the street-side painting until Feb, and then start the back yards.

Let Us Speak said...

Tundra Tabby, thanks for diving into the numbers. I think that, though, we can't assume all these past costs were justified expenses and can't be controlled better in 2011 through better management. The gas and electricity bills are high because the spas have been on during the days for weeks at a time. People are turning up the heat in the pools and spas as well. A suggestion to lock equipment was ignored. Somone turns up the heat in the main pool and it can stay hot for days, when it's not even being used. Ron Shipka really controlled these costs because there was a similar big spike in these expenses before, until he put in some controls to save money. Our community manager is rarely here it seems, and it appears that we have been spending thousands of dollars on energy bills, not to mention wasting energy. The lights on the pool were on during the day last week, just for an example. The clubhouse sometimes is freezing cold. This was even mention at a board meeting 6 months ago, and nothing was done. They just kind of laughed about it. I can't understand why the board doesn't act on this waste but would rather impose a fee hike. Somehow, that seems easier to them than effectively managing costs. I truly double given the lack management to control costs, that $80 of my dues will be going to prop up the reserves. It will be wasted. Secondly, I think all this discussion here is good and thank people for looking at the budget, but the point is: This should have gone on at the board meetings and the HOA fee was never put on the agenda (save for the rather "furtive" meeting that no one know about). I'm really sad how we've been treated. But it encourage me when people like you take the time to examine this material. I think after all this fiasco that the board should resign and let others lead.

Northwest'ers said...

I'm also so sad about what has occurred. Palermo is our second home but we love it so much - much more than our "first" home, and we haven't gotten involved before. We did meet one board member once and just thought all was okay. We are alarmed that his happened on November 4th and board members haven't responded here or elsewhere. I know the board said at one meeting we did go to when there that Penny Lane was how they would communicate to homeowners. Board members, please take this as a learning experience and shift and correct course. The owners are not your enemies or people to keep in the dark.

Hi Palermo said...

Could someone tell me about the funds we are owed from the developer for paying for upkeep of the common areas and clubhouse? What is this all about? I believe they discussed this at an HOA board many months ago, or so I was told by a neighbor.

Anonymous said...

I love this place. Let the HOA board get into its own drama and ignore (or try to) but they aren't worth the headache. Love you all.

Anonymous said...

The board had 2 open positions after the developer guys quit. The board said it wanted a treasurer and a full-time owner stepped up long ago. The board didn't appoint them Another full-time owner also volunteered but they didn't appoint them. Then last month they appointed another investor owner to a position that doesn't expire until Jan. 2012. Now there's a voting bloc that will hold power until Jan. 2012, perhaps that means we can just expect more of this.

Anonymous said...

To answer one of the above questions, we are attempting to get the developer to pay for some expenses that the HOA paid for and DRM later discovered that the developer should have paid for all along. The clubhouse also came on line "earlier" and the HOA has been paying for it. Another route may be to go for the board director insurance, to pay for expenses the developer should have paid for, because the developer reps were in charge of the board when the HOA started paying for these expenses and the homeowners had no choice in the matter. We'd have to make a claim to the insurance company and prove something wasn't done right I guess.

Anonymous said...

Just checking in - still nothing from the board people (??). What's up with the silent treatment? I'd like an explanation of the $342 a year increase and how it came about, etc. Have a great night everyone!

Anonymous said...

Hi, this is Craig, one of the boardmembers. First, I don't check this site much anymore because my use of the site to communicate has been misconstrued and resulted in threatening anonymous mail at my home that resulted in discussions with the Palm Springs Police Department. Second, I have indicated my intent to resign from the board in January and I hope the many concerned anonymous posters on this site will run for my position. Third, there was no board meeting that I know of on Nov.4 - much of what is posted here is untrue and just riles people up. My calendar says I was with a client in Santa Monica at 1 pm on that day. Fourth, I can tell you that the existing board has been dealt a very difficult time-consuming situation with Enterprises' default, a horrible economy and have tried their best to protect everyone's best interest and keep Palermo the best it can be under the circumstances. We have our own businesses to operate and do this purely as volunteers. I have been honored to work with my fellow board members (sans developer) who have volunteered their time to genuinely try to help the community. I assure you, there has been no decision we have made since I joined the board that did not first and foremost think of the residents while the developer left us/you holding the bag. This feat has been met with little appreciation and many times disrespectful comments on this site. Anyone who wants to reach me directly has my email and can do so directly.

Love the Cleansing Rain said...

I love the rain tonight. It is helping to wash away all the dog poop in the gutters. It's been piling up way too much recently.

Anonymous said...

I 2nd that. So glad the rain is getting rid of the poop here. We've had the sh-- here too long. Time to clean up the place,

Anonymous said...

Regarding the issue of the HOA paying for costs the developer should have foot the bill for instead, why did DRM allow it and why did it take so long for it to be discovered?

Anonymous said...

Well craig it would seem, as usual, no one got it or cared. Only want to complain

PS cant wait to see all those people running for the board. We shoud have a plithera of people to pic from. I am sure they will snap this place into shape and lower all of our monthly fees for us.

Anonymous said...

OMG, they didn't even tell all the board members about the Nov. 4 HOA meeting? The HOA meeting agenda for Nov. 4 is still posted in the glass display case. If all the board members weren't even notified, and given the lack of usual notice for homeowners, is the increase valid?

I do care and I get it said...

To 4:32 complaining about the complainers (which by the way is complaining) I assume since you "get it" your name will be at the top of list of new board candidates. Why don't you address the issue of no notice to homeowners, and apparently a board member, rather than making fun of people with legitimate concerns? It is a far stretch to say the people sharing comments here don't care. The issue as I read the posts is not so much the HOA dues increase but the flawed and disrespectful process and lack of openness.

Anonymous said...

Hi everyone. Thankful we have this place to talk. The agenda for that November 4th meeting is up still, but what I don't get is that, just for sake of discussion, if the board did not have a meeting on the 4th, then when was the meeting in which they voted to increase the HOA assessments by $320-plus a year? Did we have NO notice of it at all, not even a single sheet of paper at the clubhouse? The board guy saying he didn't now of the November 4th meeting has opened up a can worms, so to speak, like they didn't tell all the board members about the November 4th meeting, or they had another meeting that had no agenda posted at all? What a big mess. Someone has egg of his or her face. DRM needs to clear this up as they are the professionals in all this and have professional standards that must be followed. I don't know any board members so it is no big deal if one doesn't run again.

Anonymous said...

Love it. A board member didn't even know about the meeting!!!???

Anonymous said...

Just a friendly fact check - No one is "resigning" from the HOA board. That position in question is up for grabs in the January election. Resigning isn't the same thing as not running, and also something to remember is that particular board slot was held by an appointed board member, not an one elected. No one is "resigning." We get to elect someone in January for that spot. Just a clarification of the facts. I don't care if someone in particular runs or not, but we should be clear about the facts. No one is "resigning."

Anonymous said...

Hello Everyone, This is Perry. I think a lot of you know me. I was just curious, has anyone tried to call or meet with one of the board members and ask them what is going on here? I am not directley involved here because I rent but I can understand the basic fustration here. My only suggestion is that someone take the direct approach here. It might adjust some of the fustration here.