The ACHOA Communications Committee has responded to an individually asked question concerning the “Potential Loan” that may be pursued by the ACHOA to finance the purchase of “The Club At ArrowCreek” if approved by the ACHOA members.
The question is restated with the response below.
“Thank you for the latest update on what is going on re: the Club at AC. I would be interested in knowing how the 2.5 million dollar figure came to be. How much did the FOA pay for the Club at bankruptcy proceeding? Is the $2.5 million their cost or are they trying to re-coop their original membership fees as a part of this process by selling to the HOA at a profit over what they paid for the club?….Just wondering……”
The ACHOA Letter of Intent to Purchase “The Club At ArrowCreek” states the following “The intended purchase price is the total of all acquisition costs incurred by Seller in originally purchasing the Subject Property for, plus any losses /expense incurred by Seller as of the date of the Parties’ execution of the Purchase Agreement (inclusive of major maintenance and equipment expense), plus twelve (12%) interest per annum. The final purchase price will be determined and agreed upon by the parties.” The Letter of Intent is now allowing the ACHOA to examine all of the components that will make up the Purchase Price.
The Purchase Price does not include any reimbursement of any original membership fees. All memberships fees were discharged by the Bankruptcy Court and are not part of the Purchase Price. At this time, the negotiated Purchase Price Number has not been determined. This is still pending. However, it should be noted that our estimated loan amount of $2.5 million includes approximately $900 thousand that will still be owed to the County for delinquent water payments as incurred by the former owners. This amount will be paid over to the County, not to the current owners of the Club at ArrowCreek.
The $2,500,000 Loan amount at this time is speculative and being used as a talking point with lending institutions. There are many variables in determining the loan terms including the following:
- Actual Purchase Price Range
- Period of repayment 15 to 30 years
- Interest Rate 4.5% to 5.5%
- Adjustment periods if any
- Loan fees
- Review and approval of required loan application documents which include ACHOA Audit Statements, ACHOA Collection Policy, ACHOA Delinquency Reports, Pro-forma Budget for next five years, 2015 ACHOA Approved Budget, and Changes to CC&Rs.
As additional Loan information and Actual Purchase Price information is developed by the ACCC, it will be released to the ACHOA membership. Thank your for your consideration.
ACHOA Communication Committee