Why all this secrecy…
Information from the POA might help the community understand and support BOD goals and actions. Why can’t we get it?
The budget addresses expenses for principal and interest payments against the 5-year amenities loan of $1,600,000 which originated on January 28, 2022. This loan refinanced the FH Partners loan for the 385 acre purchase and was scheduled to be repaid in early 2027. A Notes section at the bottom of page 4 of the 2024 Final budget states this: 1) Coastal Bank Loan Pay-Off scheduled for May 2024. But the Proposed 2024 budget published for the Community does not have a Notes section and states Amenities Loan Payment – Principal of $319,613 and Amenities Loan Payment – Interest of $36,969.
Soon after, the Final budget showed a principal payment of $267,183 and a reduced interest payment of $7,000. A footnote on page 4 states that the Coastal Bank Loan Pay-off is scheduled for May 2024, with a prepayment penalty of 1% equaling $9,494. This fact was likely known by the January 23 budget meeting.
FACTS will agree that satisfying this loan so early is a good thing, but we ask where did this money come from? And why wasn’t the community informed of this at the budget meeting?
That same Notes section says the following:
- HC – Construction Loan Settlement scheduled for May 2024
- HC – 1 year Construction Interest Only Loan payment scheduled for June 2024
- HC – 14-year P&I loan payment scheduled for June 2025
- Total HC – 15-year loan payment is $6.5M at 6.9%
- Projected Certificate of Occupancy – Jul-Oct 2025
Is collateral being offered for this new loan? What special type of loan increases interest payments? See the line-item HC -Loan Repayment – Interest.
It’s our community. It’s our money. Why are we not being told how and why it’s being spent?
Your FACTS reporter