HOA board says LID needed to secure bank loan after years of unsuccessful grant bids

Representatives of the homeowners association defended the LID as the only viable path to finance broad repairs to the subdivision's water distribution system.

Sean Denning, a member of the HOA board, described repeated grant denials and reported that discussions with a local lender, the Bank of Commerce, concluded the lender would underwrite a loan only if an LID existed. "We got to the end process with Jeff Hardover at the Bank of Commerce... they came back and said, we won't loan it legally... potentially do this LID, and then they would give us a loan," Denning said.

Denning and other HOA members detailed prior expensive failures: one broken saddle repair last year cost more than $100,000 and drained the association's limited reserves. The HOA urged commissioners to approve the financing mechanism so work can proceed before further system failures.

HOA board members also described technical steps already taken: about 28% of 139 saddles have been replaced with stainless fittings, and a test well was dug and tested; the board said further work requires external financing.