Stop the $400,000 Loan

A FINANCIAL RECKONING FOR COCO WOOD LAKES - STOP THE $400,000 LOAN

Attend the September 22, 2026 board meeting at 7pm and object to this needless expense.

Dear Neighbors and Fellow Homeowners,

How Much More of Our Money Does This Board Intend to Spend Before Someone Says ENOUGH?
They already jacked up our dues over the past four years and spend our money fearlessly. Now they want to spend our money faster than it comes in, and put us all on the hook for $400,000.00

During the February 2026 elections, there were promises and a strong emphasis made by these board members to control their spending and conserve/build the Reserves. Ever since they were elected, they've been doing the exact opposite. So obviously they lied to us just to get elected.

It is well past the time for Coco Wood Lakes homeowners to pay very close attention to what our board is doing.

The Board is scheduled to discuss and vote on a proposed $400,000 loan/line of credit at Tuesday's, September 22, meeting at 7:00 PM.

And how is this enormous financial commitment presented to homeowners on the September 22, 2026 meeting agenda?

>“Old Business — 5. Loan/LOC update – discuss and vote.”

That's it. They made it look like nothing. Since when is $400,000 nothing?

• · No prominently disclosed dollar amount is provided to us on the agenda.

• · No detailed explanation.

• · No complete project list. No financial presentation.
  

$400,000 of debt (over $1,100 to every homeowner) is reduced to six misleading and deceptive words on an agenda. Is this what anyone would consider honesty or transparency?

For a financial commitment of this magnitude, homeowners deserve meaningful disclosure, time, and honesty before such a vote. But as usual, they didn't give us that. They tried to keep us in the dark.

THIS IS NOT A $400,000 DECISION - The proposed borrowing is $400,000 at 7.5% for ten years, plus more than $5,000 in origination costs.

At those terms, the loan would require approximately:

• · $4,747 per month

• · $56,964 per year in repayments

• · Approximately $569,600 in total payments

• · Approximately $169,600 in interest

• · Plus origination and other financing costs

The Federal government just raised interest rates last week by an additional 1/4 percent. So this proposed 7.5% interest could be even higher.

So let's be honest about what is being considered: More than $570,000 of our money over the next ten years.
And for what? … A collection of whimsical cosmetic projects wanted by a handful of board supporters whose necessity, timing, scope, and cost have not been adequately demonstrated. Are 90% to 95% of homeowners going to be forced to pay more than $1,500 for what a small special-interest group of about 17 people who use the clubhouse wants for their own benefit? Is this democracy? The clubhouse is perfect the way it is and suits everyone's needs.

Let's do what is right for our people, and for our community. We are a humble and modest 55+ community where most of us are retired and on fixed incomes. This is what attracted us to this community.

We already pay $2,500/yr in dues and don't get much more than the use of a pool. If our dues keep going up, as the current board promises and does every year, then the values of our homes will fall. Just north of us is Hunting Lakes. Their homes are much nicer, but the values of those homes are in the low to mid $300,000's because their dues are so high ... If you consider that we have to pay for roof replacement, our own landscaping maintenance, and exterior painting of our homes, then we are nearly at a level of $800 per month for comparable upkeep of our homes. It isn't cheap to live here anymore. Our community is becoming less attractive with these higher dues and excessive spending habits of the current board.

FIX WHAT IS BROKEN. DON'T BORROW MONEY TO RENOVATE FOR THE SAKE OF RENOVATING.

• · There is nothing wrong with maintaining our community.

• · There is nothing wrong with repairing things that are broken.

• · There is nothing wrong with addressing legitimate safety, accessibility, or legal requirements.

But borrowing hundreds of thousands of dollars and burdening 393 homeowners to replace aesthetically undesirable components requires evidence that the work is actually necessary now.

The Board should be asking:

• · What is the actual condition today?

• · Is the work really needed?

• · What will happen if a hurricane hits?

• · Will there be enough funds to cover unplanned damages brought on by hurricanes?

• · How can we cover a $200,000.00 insurance deductible while having this incredible debt?

• · Can the item be repaired or maintained instead?

• · Do these items actually need replacement, or are they still functional for years to come?

• · Why not consider deferred maintenance until the Reserves can be built up?

• · Is replacement actually required?

• · What does an independent financial professional recommend?

• · Are these changes really needed?

A projected replacement date on a Reserve Study is not automatically an expiration date.

THE BOARD'S ANALYSIS NEEDS TO BE QUESTIONED
The Board is apparently relying on a Board-created spreadsheet based on the outdated 2022 reserve study.

• The current spreadsheet being used by the Board was not prepared or certified by a qualified reserve professional.

That matters when 393 homeowners are being asked to incur over $400,000 in new debt.

A reserve study is a planning tool based on estimates and assumptions. It is not a spending mandate.

The Board should therefore provide the 2022 study, its current analysis, identify who prepared the current analysis and their qualifications, and provide current physical-condition assessments supporting the decision to replace each major component now.

The Board needs to prove the need—not simply point to a spreadsheet.

WHAT ARE WE ACTUALLY BORROWING $400,000 FOR?
The proposed projects reportedly include:

• · Kitchen: $20,000+

• · Bathrooms: $300,000+

• · Pool pavers: $230,000+

• · 14 clubhouse doors: $70,000+

• · Pool resurfacing: $30,000

• · Clubhouse flooring: $18,000

• · Interior painting: $14,000

• · A wall between the auditorium and Blue Room

• Plus potentially other costs not yet fully disclosed, such as ADA requirements that will cost tens of thousands of dollars that the board didn't even account for.

These projects and numbers deserve serious scrutiny.

Kitchen — $20,000+

The kitchen is hardly used. If the dishwasher is broken, replace the dishwasher. Why replace everything? This is not prudent spending. Why throw the baby out with the bath water?
If the entire kitchen truly requires replacement, show homeowners the justification.

Bathrooms — $300,000+

What is needed that requires more than $300,000 in expenses?

• Is anything really broken or in need of replacement, or is it just aesthetics?

• All the toilets were replaced less than five years ago.

• Is anything legally required to be replaced? NO.

• Touching the bathrooms triggers a requirement for 30% of the original planned cost to be added for ADA accessibility. That alone adds another $75,000 to the costs.

• What are the complete costs after permits, engineering, demolition, labor, materials, and contingencies? Document the costs; don't just throw out numbers. We want proof.

Pool Pavers — $230,000+

• · Pavers can last a hundred years or more.

• · Are they actually failing or unsafe?

If the pavers remain serviceable, homeowners deserve a compelling explanation for spending more than $230,000 now.
Considering the age of the pool, wouldn't it be more prudent to replace the pavers when the pool is replaced? Otherwise, we would be paying twice for the pavers to be replaced in the next 5 years or so. That is insanity. There is nothing wrong with the current pool pavers. They look great.

Fourteen (14) Doors — $70,000+

If only two or three doors were defective, why replace fourteen?
Show us the condition assessment and the repair-versus-replacement analysis.
Now, all the new 14 doors will have to be painted to match the exterior of the clubhouse! Why are things being done twice? Does that make sense?

Pool Resurfacing — $30,000

If the pool was resurfaced less than ten years ago and remains in satisfactory condition, what objective evidence demonstrates that another $30,000 is necessary now?

$18,000 Flooring; $14,000 painting; and the $10,000 wall between the Blue Room and the auditorium. WHY???

• · Are these projects necessary repairs, safety requirements, or whimsical cosmetic changes?

• · If they are primarily cosmetic, why should homeowners be burdened with borrowed money to pay for them?

The principle is simple:
1- Fix what is broken.
2- Replace what truly needs replacing.
3- Postpone what can responsibly wait.

THE ESTIMATES NEED TO BE COMPLETE
Homeowners should not be asked to pay $400,000 based on preliminary numbers that clearly omit:

• · Permits

• · Engineering

• · Architectural services

• · Inspections

• · Demolition and disposal

• · Labor and materials

• · Code-compliance costs

• · Project management

• · Contingencies

• · Change orders

• · Unexpected conditions

We need complete project budgets—not optimistic estimates.

AND THEN THERE IS SECTION 5.11 of our governing documents
Our amended Bylaws state:

>“The Board of Directors shall be authorized to expend such sums, not to exceed in the aggregate of $5,000, except for emergency repairs or emergency items in any one calendar year, for the purposes not specified in the budget as such may be required. Any amount in excess thereof shall require approval of the majority of the homeowners.”

That language raises a fundamental question.

If these expenditures were not specified in the approved budget, which they are not, where is the required majority homeowner approval? Why aren't the homeowners given their right to decide and vote on this matter?

These projects are NOT emergencies. They are whimsical expenses.

OUR FINANCIAL POSITION MATTERS
Our money is not an unlimited ATM. We are not cash cows.

The Association needs adequate reserves and financial flexibility/stability for hurricanes, insurance deductibles, major repairs, rising insurance costs, unexpected failures, and other legitimate needs.

Every dollar committed to debt service (interest) is a dollar that cannot be used elsewhere.

At approximately $57,000 per year, this loan would create a substantial ongoing financial obligation—and more than $170,000 would ultimately go toward interest alone.

That creates pressure on the Association's finances and could contribute to future:

• · Assessment increases;

• · Reduced reserve contributions;

• · Reduced services;

• · Additional borrowing; or

• · Special assessments.
  

The answer to every unexpected expense cannot be another loan or another special assessment.

ENOUGH IS ENOUGH
The board of Coco Wood Lakes does not need a blank check for renovations. We already see how irresponsible they are with our money.

We do not need to replace functioning assets simply because of the cosmetic wants of a few people.
None of this spending will increase the value of our homes. That is just a false myth.

We do not need to borrow hundreds of thousands of dollars for projects whose urgency and necessity have not been adequately demonstrated, but are merely optional.

Our dues are already too high, and the board can’t seem to spend our money fast enough.

We need to:

• Fix what is broken.

• Address what is necessary.

• Protect the reserves.

• Control spending.

• Follow the Bylaws.

• Obtain homeowner approval when the Bylaws require it.

And most importantly: SPEND HOMEOWNER MONEY AS THOUGH IT ACTUALLY MATTERS. Because it does.

THIS IS OUR MONEY. THIS IS OUR COMMUNITY. THESE ARE OUR HOMES. WE HAVE A VOICE.

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