Concerned Homeowners of Mesa Terrace Condo Assoc.: FW: [Mesaterracehoa] $250,000 Loan to HOA from Zongfu Li

From: Sam Biggs via Mesaterracehoa <mesaterracehoa+maaly_at_me.com@gaggle.email>
Sent: Wednesday, May 10, 2023 6:33 PM
To: Mesaterracehoa <mesaterracehoa@gaggle.email>; Transcend Community Management <mgross@transcendhoa.com>; Transcend Community Management <admin@transcendhoa.com>
Subject: Re: [Mesaterracehoa] $250,000 Loan to HOA from Zongfu Li

IF this is accurate, this would be a massive conflict of interest and should require a vote by the association members. The board should not be able to vote to borrow money from another board member, or any related entity. Any competent attorney should see that conflict of interest. Also, the HOA should not be able to borrow money under its current financial situation. We had a vote for an assessment and the vote was 100% in the negative. Now you are side-stepping our vote and you are going to borrow the money. Seems like we need a better financial manager, not a loan. If the attorney can't get paid, so be it. They will have to wait like all of our other projects that need money.

There is a reason our bank accounts are empty 1) Under Zongfu's prior board leadership we had around $250,000 and by the time he (and the board) was done more than $200,000 was gone, spent on legal fees. 2) Scott's board put us into a bankruptcy plan which is costing hundreds of thousands of dollars in useless legal fees. They had a simple solution at the time... raise the HOA dues so we could pay our own way out of the debts. That would have solved everything! They refused to take the approach and so here we are spending all our money on legal fees.

The solution remains the same: Get the attorneys and legal system out of everything and let us manage the association with Transcend or any professional management company. Legal fees are anchoring us and we can't come up and breathe. The problem keeps coming back to Zongfu's and Scott's legal quarrel that started this whole thing and put the community squarely in the middle of it. You two are the problem. You just can't let it go. Neither of you should be on the board, but you both have too many votes to make that happen.

Zongfu, if you are going to make this loan, you need to resign from the board and let a new board vote on this.

SAM BIGGS

President

480-584-3450 O | 480-203-7768 C

3514 N. POWER RD. STE 132 | MESA, ARIZONA 85215

On May 10, 2023, at 3:02 PM, Scott Gordon via Mesaterracehoa <mesaterracehoa+scott_at_gordon.bz@gaggle.email> wrote:

Zongfu:

Care to inform the homeowners of your decision to loan the HOA $250,000 at 7% interest just to pay a portion of legal fees with no funds being spent to repair/address open HOA Issues?

This is on top of the $40,000 you have already loaned to pay Michael Carmel's first invoice.

Per Michael Carmel the loan was already discussed in an executive session earlier this week. Per his filing the loan was already decided on. He didn't even wait to file his motion with the court for the official open Board meeting to take place.

HOA sent a notice about a meeting yesterday with no agenda to the Homeowners. Is the Board hiding the fact that they are going to execute a loan on behalf of the Homeowners for $250,000 and Zongfu Li, President of the HOA is going to sign off on his own loan to the HOA?

The Board, who has a fiduciary duty to the homeowners believe this action is in the best interest of the community?

Definitely news worthy…

Scott

Canyon Ridge Properties, LLC.