Let’s Do the Math

We have received several requests to take a closer look at the numbers claimed by Attorneys Andersson and Davis, as well as their plaintiffs.  Let’s do the math:               

1. Paying 12% late fee.

Source: Plaintiffs’ website, FAQ section, regarding if homeowners have to pay 12% interest late fee. Their answer confirms this late fee can indeed be applied but assures homeowners, “Note: 12% interest on $36 would add an additional 36 cents to the monthly fee.”

Do the Math: One percent of $36 = 36 cents. Ten percent of $36 = $3.60. Twelve percent of $36 = $4.32. Lying to minimize risk to homeowners after advising us to ignore paying maintenance fees, is irresponsible and dishonest.

2. Promise of $25,000 per home/unit.                                 

Source: David Andersson’s letter (April 2020) to homeowners states:
“If, for example, the court awarded the maximum amount of $25,000 and there were 600 class members, then the Declarant and Homestead Farms management could be liable for damages of $15,000,000.”  

The $25,000 applied to “600 class members” are the homeowners. And in order to win $25,000 each, we’d have to be awarded $15 million! This enticement to homeowners continues throughout their documents:

Original Complaint, pg. 16: “Plaintiffs and Class Members are entitled to exemplary damages of three times their actual damages up to $25,000 per violation.” To emphasize that homeowners have been violated, this same page states “hundreds” of homeowners have been injured with the capacity “to continue to injure hundreds more.” How have any of us been injured if the majority stopped paying fees in Dec. 2019? The only real injury has been to our once beautiful golf course as we watch Homestead deteriorate from diverted funds.
These claims are again repeated in 3rd, 4th, and 5th Amended Complaints as well as verbal reminders at every Town Hall meeting.

3. Exorbitant Fees.  

Source: David Andersson’s letter (April 2020) regarding what the lawsuit will cost homeowners (not lawyers). “If we are forced to take the case all the way to trial, the total costs could be in the low six-figures. However, if we have significant contributions from the Parcel Owners, (for example $93 x 500 x 12), there should be plenty of money in the Litigation Trust Fund.”
Mr. Andersson’s request that 500 homes pay $93 for 12 months = $558,000.  

Do the Math: Mr. Davis has criticized Mr. Scholtens’ tiered fees to repair and restore Homestead for homeowners and Lynden. But when his fellow lawyer asks for $558,000 to pay their legal fees so they can win a LOT of money, causing some to have a lien against their home, interest on late fees going back months or years, difficulty selling their home, or potential denial for re-financing. If it’s wrong when management asks for $93/month, it’s just as wrong when lawyers do the same. That’s hypocrisy!

4. Motions for Reconsideration.  

Source: Under Whatcom County Local Rule 59, a party may file ONE motion for reconsideration to prevent the same arguments being raised again and again, wasting the court’s time. Plaintiff lawyers Andersson and Davis have filed SEVEN Motions for Reconsideration in this lawsuit.  

Do the Math: No one is above the law, especially those claiming to know the law.

5. Revenue Stream.  

Source: Letter from Matthew Davis (Dec. 2020) regarding the class action. On page 2, Mr. Davis states: “…owners are now paying $93 per month, which totals $685,000 per year to maintain 9 acres…18 Paradise is pocketing over $500,000 a year of your money as profit.” 

Do the Math: For revenue to be $685,000, each one of the 614 homes/units in Homestead would have had to pay $93. But within days of receiving the letters about the increase in Dec. 2019, homeowners met with MJ and voted to have representatives from each of our neighborhoods seek a solution. Until we knew what was decided, the majority of us stopped paying any fees and many continue to do so three years later. There was NEVER a time when every home in Homestead paid $93. This number was purposely used to evoke anger against everyone but the lawyers. It’s manipulative and, unfortunately, successful in dividing our community.

6. Petition to Judge Olson to Certify Class Action

Source: In October 2020, many homeowners received a letter from plaintiff lawyers with a form to complete if they supported the lawsuit. These were filed in court with Attorney Andersson’s declaration stating they “…do not include any duplicates from the same declarant.”  

Do the Math: There are multiple duplicates including 13 from Mr. Andersson’s own property manager, singles and couples who signed more than one affidavit, an estate signing on behalf of a pre-lawsuit deceased relative, another with a note stating they were anti-lawsuit but included as pro-lawsuit???
When we subtracted the duplicates, those who are anti-lawsuit, deceased, and no longer owners, the total for supporting lawsuit was closer to 130 instead of 336.  

7. Golf Course’s Market Value. 

Source: Plaintiffs’ website, FAQ section, has a lengthy answer on this topic and ends with: “The legal counsel (Andersson and Davis) has seen estimates that Homestead Farms golf course is worth $600,000.” Where are these estimates? Who provided them? Without documentation to verify this claim, it’s false until proven otherwise.

Do the Math: One plaintiff’s condo on our golf course sold for $600,000 in 2022.
And now our entire golf course, with 148 acres of scenic views and parks, is also worth $600,000??? The lawyers need to catch up on Lynden market values.

8. Bids for COS Fees.

Source: Plaintiffs website, home page, is the following graphic:  

Do the Math: According to our plaintiffs, several estimates were requested and received from landscaping contractors. Their conclusion was our COS can be maintained if we each pay $8.33 per month, which adds up to $61,375/year.
Let’s see if this would be enough for:

Replacing Irrigation Pipes in COS
One small leak cost $3,000 behind a home (on COS), without an excavator. Many repairs would require heavy equipment with an operator which increases cost. 

Limbing and Felling Trees
Certified tree workers charge an average $21 – $31.00/hour. They require a team and specialized equipment for safety and lowering heavy limbs to the ground. Homestead Park has some very tall trees between a protected stream and homes. 

Paying Street Lights Electric Bill
We’ve heard estimates from both sides which makes the amount somewhere between $25,000 – $30,000 per year. Several lights remain on 24/7.

Bringing Street Lights Up to Code
A few years ago, we were given an $80,000 – $85,000 estimate to bring street lights’ wiring below ground, up to code. 

Replacing Street Lights
MJ estimated the average replacement for a street light is about $1200. If only half of the street lights needed to be replaced, that would be $127,800 which is far more than the landscapers’ bid of $61,375.

HOA Costs:
A former HOA president’s estimated operating costs (on the conservative side) for Homestead’s HOA would be $400,000 which included taxes, insurance, and reserve funds. We also checked with a property management company in Lynden who confirmed $400,000 was a “conservative” number for our hypothetical HOA.

Repairing/Replacing Timber Bridges
From: www.whatitcostnow.com, a wooden creek bridge is $500 – $10,000.  
Lifespan is 20-50 years, with Homestead’s wooden bridges being 30 years old.  
Inspection and maintenance costs are $1600 – $3100 per year.  

Storm Pond Facilities:
Within Homestead Park, there are 2 detention ponds, and on the golf course, there are 19 with two pump stations and two weirs. This storm mitigation system has been counted as COS in the past but a jury will decide in Sept. if that is to remain.  

Of interest, the neighborhoods that drain into these storm ponds are:
Homestead Rose Ellen
The Park   Woodfield
Emerald Green Heartland
Harrison Place

We talked at length with a nationwide pond management company for estimates and requirements to maintain the ponds. It will require a permit, becomes complicated if any ponds connect with a salmon stream (ours do) and basic maintenance will include dredging (there are several methods) to remove biomass, aeration to increase or maintain oxygen levels, and comprehensive erosion control. 

In the meantime, why can’t we see these estimates? Who provided them?
When lawyers make a claim but refuse to show their class members the evidence to back their claim, what are we left to conclude? They are hiding the truth because it will weaken their claim? Or there is simply no evidence?  

9. Golf Course Closure

Do the Math: If our community fails to recover from this divisive lawsuit, if the golf course closes after 30 years of being an integral part of our beloved city, if our homes no longer surround a beautiful center of green fairways and blue ponds, we all end up with ZERO!