Quote:
Originally Posted by Advogado
Basically the same thing.
The class-action lawsuit focused on the lack of an adequate provision for depreciation when calculating the present value of the income stream that was used to value the assets. Had the present value been properly calculated (assuming that present-value methodology is even appropriate), the sale price would have been lower. That is just another way of saying that the assets were overpriced.
In fact, the whole thrust of the class-action lawsuit was that the Developer overpriced the assets. As a consequence, after paying interest on the bonds used to finance the purchase, the VCCDD didn't have enough cash to maintain the amenity facilities-- thus, the deterioration that provoked the lawsuit.
In other words, the whole thrust of the class-action lawsuit was alleged overpricing by the Developer. Why else do you think that the Developer had to pony up the $40 million?
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Let me add this into the mix....Some one on behalf of the residents needs to file an action to watch out and protect our interests. The District is being accused of wrong doing which the residents ahd no knowledge, no involvement or control and hence creates a conflict of sorts between the residents and the district. I do not believe we should be using the amenties fees to defend this lawsuit. The POA continues to sit on the fence . Why? If the district was negligent in their dealings don't they have some sort of liability insurance for that and shouldn't they contact their insurance company to see if they will cover this situation? I wonder if the POA had asked the district about this insurance stuff since they are the watch dog group for residents? I wonder why the POA doesn't get its attorney(s) involved to see what is best for us? We may be losing some important time and or opportunities to direct this legal action away from us and point it to where it belongs. If the information is accurate in the POA Alert then what occurred is that the Developer threw a big party that overstated profits and not only were we not invited also are getting stuck with the bill