It was supposed to be a golfer’s paradise.
Now, with a do-or-die deadline to approve a massive 300% water rate hike or face going completely dry, the Central California community of Diablo Grande is at a crossroads.
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What’s worrying most is that the rate hike risks pricing residents out of their homes.
“We only have a certain income. That’s why we picked up here, because we could afford just that,” resident Lydia Stewart told ABC 10 reporters. “We didn’t expect this big lump sum to be dumped on us.”
With its June 30 deadline just days away, Diablo Grande must choose: either destroy their finances or the community they call home.
Paradise lost?
Diablo Grande (which ironically translates to "Big Devil") was originally marketed as a golfer’s paradise, tucked into the sunbaked hills of Stanislaus County.
First planned in 1990, the project received official approval in 1993. However, developers continually struggled to get environmental impact reports approved by the county due to water concerns, which led to the creation of the Western Hills Water District in 1999 to serve the community.
But while investors initially planned for a 10,000-home community with a hotel, six golf courses, a spa, and more, by 2008, financial woes led to Diablo Grande’s developers filing for bankruptcy. In October 2008, World International LLC purchased Diablo Grande for $20 million; however, the financial issues have persisted.
Now you can add water woes to the list of issues facing Diablo Grande. The community’s residents must approve a jaw-dropping water rate increase from $145 to $569 monthly — nearly a 300% jump — or watch their taps run dry on June 30.
How did Diablo Grande’s water run dry?
Initially, developers subsidized water costs to attract buyers, a common practice that makes model homes even more appealing.
But when the housing project stalled, the water bills went unpaid, with the debt swelling to more than $13 million, according to the Kern County Water Agency, which claims it hasn’t received a payment since 2019.
Residents took over management of the water service in 2020, along with its mountain of debt. They face a June 30 deadline to approve the rate hike; otherwise, the agency says, water service to the development will be shut off.
Not everyone in Diablo Grande is surprised by the latest developments. Doug Moore, who bought a home overlooking what used to be the 13th hole back in 2011, saw the writing on the wall:
"I wasn’t surprised. I’ve been following this for years," Moore said, who is now acting as a community historian.
Stewart and her husband, who live on Social Security, poured their life savings into what they thought would be their retirement dream home. Now they’re facing ruin.
Katie Whitney and her husband, who moved to Diablo Grande in 2012 to enjoy their golden years, put it bluntly: "The dream was to move up here, someday retire, and play golf every day. We’ve paid our bill. … How did we get here? How in the world did we get here?"
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Residents getting the runaround
As the June 30 deadline looms, district leaders have been scrambling to find help from state and local agencies. But Stanislaus County officials have effectively told residents they’re on their own.
"It is an issue that must be handled here locally, with a local district," County Counsel Tom Boze said. "I know that’s a tough answer. That’s a tough message."
Debbie Antigua, who leads a community action group, reached out to government agencies, but was left frustrated when she couldn’t find anyone willing to help:
"They just (say) we’re forwarding you on to another agency," she said. "OK, which one? Because nobody’s coming."
Both the California Department of Water Resources and the Governor’s Office have declared the issue a local matter that requires a local solution.
"It’s very hard to believe that there isn’t an entity that can come forward and help us find a solution," Whitney said.
Fire department voices concerns
Residents have found an ally in the local fire department. The West Stanislaus County Fire Protection District has formally requested that the water authority not shut off water to Diablo Grande.
“The fire hydrants are supplied from the one-million-gallon water tank they have on site that is gravity-fed,” Chief Jeff Frye, West Stanislaus County Fire Protection District, told reporters.
“We are concerned, not only about the welfare of our residents up there in Diablo Grande, but also we’re concerned about the issue of fire protection. A fire would start burning and develop in size and intensity and spread prior to our resources being able to get on scene and so it would require a lot more resources to get there just to contain the fire and eventually put it out.”
For now, however, without government help, residents are forced to face the near-impossible choice between a massive rate increase or a shutoff.
"Just work with us and find a solution is what we’re asking," Stewart said, "and they won’t even talk to us."
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
