Board of Directors Message to South Fork 3 Residents August 26, 2022
RE: CDD Loans in 2021 & 2022
The Board wants to make sure that all residents have accurate and up to date information regarding the loans to the CDD as there has been a lot of misinformation and accusations posted on social media. All details are outlined below. All files can be found by choosing the “CDD Loan Files” from the menu at the top of the web page.
- FACT: In September 2021 the Board agreed to give the CDD a loan for $150,000 to allow CDD operations to continue until the CDD fees were released by the county at the end of the year.
- This loan was paid back in full in January 2022 along with a $5000 fee that had been agreed upon by the CDD and HOA.
- The Board had followed the guidance of the previous CDD and HOA managers at the time (Rick Reidt and Jill Morrison). We were told so long as all three Board members agreed, we had the authority to move forward. We now know that was not the case.
- Our decision was made with the best interest of the community in mind as we would be saving all homeowners the high cost incurred through a short-term loan taken out by the CDD. We never intentionally kept this information from residents, and we apologize for not making this more public at the time.
- See File 1 which includes the 2021 loan agreement along with the 2022 CDD Budget, and File 2 which include the September 2021 and January 2022 financials showing the loan going out and then back into the HOA account. (Docu-sign signatures have been removed for privacy reasons)
- All HOA financials are available for residents to view under the resource tab in Town Square.
- FACT: In the first week of August the Board was again approached by the CDD manager (Mark Vega) to ask for a $200,000 loan to once again get the CDD through to the year of the year.
- Before making a decision regarding the loan the Board discussed this with Property Manager Andrea Cedres, Andrea immediately put a halt to any further action and explained the proper procedures for following through with the loan. Moving forward the Board did not want to repeat its earlier mistake.
- Prior to the August HOA Meet & Greet, Mark Vega sent out messages to the residents regarding the CDD fee increase and mentioned the $200,000 loan. The loan had not been approved nor discussed by the board at this time.
- The Board followed protocol and scheduled a Special Board Meeting to discuss the three options we had regarding the loan. Based on the input provided at the meeting the Board was ready to make a motion to grant the loan without any fees attached.
- Due to a cap on the number of residents allowed on the ZOOM at one time a Board vote could not take place. This was an administrative error on the part of Inframark which Andrea Cedres took full responsibility for.
- The CDD told The Board that they needed to move forward with securing a bank loan as they could not wait any longer to pay their vendors. This would have resulted in a high interest loan which would have come out of the residents’ pockets in the long run.
- The Board contacted the HOA lawyer and found that according to Florida statutes (FL617.0821)and our governing documents (Bylaws Section 4.5) it was well within our rights as Board of Directors to approve the loan without holding another community meeting as long as all Board members agreed in writing to the $200,000 loan to the CDD. A resolution was drawn up by legal counsel that all three Board members signed this Monday morning (August 22, 2022). The funding agreement drawn up by Inframark was signed by all Board members following the CDD Budget meeting on August 22, 2022.
- See File 3 which includes:
- Letter to the residents dated August 22, 2022
- The Resolution – Action by Unanimous Consent (Signatures redacted due to privacy issues)
- The CDD Funding Agreement (Signatures redacted due to privacy issues)
- A CDD invoice sheet passed out at the CDD Budget meeting
- A Landscape Bid Summary provided by Mark Vega after the CDD meeting
- The Board will decide at the September 13, 2022 Board Meeting on how to move forward in filling the position currently held by Scott Corder.
- Attached is the South Fork 3 CDD Budget for 2023 (See File 4)