SAN JOSE — Claims of unsafe living conditions, including a lack of hot water, heat and air conditioning, along with thefts and poor security, have surfaced through a contentious legal battle over a San Jose housing tower.
The disquieting allegations are contained in legal papers filed in connection with a Santa Clara County Superior Court fight arising from delinquent maintenance fees for a residential highrise at 188 West St. James Street in downtown San Jose.
Litigation and real estate woes have engulfed the western highrise of the two-tower residential complex at 188 West St. James. In April, nine condominium units were auctioned for a head-spinning average price of $31,900 to help the homeowner’s association recoup unpaid maintenance fees owed by the site’s developer.
Typically, when a developer sells a condo, the new owner is responsible for paying the ongoing monthly HOA dues. In this instance, the developer is responsible for paying the maintenance fees for units that have been built but haven’t been sold to a new owner.
FPP MB, an affiliate of China-based Z&L Properties, has sued some HOA members living in the tower, seeking to block the final sale of the condos involved in the foreclosure auction. On Aug. 6, Santa Clara County Judge Amber Rosen issued a court order granting the preliminary injunction to block the sale for now.
On Aug. 9, Some HOA members living in the highrise filed documents claiming several problems haunt the western tower, where condo owners are living and condos remained unsold. The eastern tower has never been occupied.
“The developer and developer directors are threatening the health, safety, and property of the homeowners,” three members of the HOA claim in the Aug. 9 court filing. The “developer directors” are some directors of the HOA board that the developer appointed. These directors, the lawsuit claims, ” have put the building in a dangerous condition.”
The lobby lacks security and is not staffed continuously, the HOA members claimed. The homeowners also claimed the developer failed to secure the building’s lobby doors or garage doors, preventing them from closing properly.
“There have been many thefts, including theft of bicycles from the bicycle room, packages from the package room, and personal items from residents’ storage areas,” according to the legal filing.
Many doors were installed incorrectly, allowing them to be opened from the outside with ease, the court papers claim.
“The building’s boiler system, which delivers hot water to the units, was not set up properly, serviced, or maintained by the developer,” the HOA members claimed. “Sometimes there was no hot water, and sometimes there was only scalding hot water.”
FPP MB, the entity that is affiliated with the developer and the owner of the two towers, responded it’s aware of the allegations regarding the flaws, defects and hazards in the building, according to an Aug. 16 filing with the court by the real estate firm.
“Petitioners (the HOA members) contend that until recently one of the three elevators has commonly been out of service, the building’s boiler system was not set up properly and was not properly maintained, there is frequent flooding in the below ground garages, and the boiler and HVAC systems were not properly installed, tested, or maintained,” FPP stated in the court filing. “All of these issues are being addressed.”
The precise timeline or approach to address the defects and problems wasn’t immediately specified.
The homeowners also complained that some non-residents have occupied empty condos from time to time.
“The police have been called to the building many times for security reasons, including thefts, outsiders sleeping in the halls, and outsiders squatting in unoccupied units,” the homeowners claimed in the court filing.
The homeowners complained in their filing that some of the problems have been ongoing for a considerable time.
“About 20 to 30 homeowners have complained that they have not had heat, air conditioning, or both for more than two years,” the homeowners stated in the court filing,” the residents stated in the court papers.
A separate lawsuit is underway that the homeowners filed against the developer of the tower that is focusing on the alleged construction defects, security woes and other shortcomings in the tower.
“These claims will be resolved in the construction litigation,” FPP, the developer, stated in the court papers. “If the homeowners prevail, the developer will pay for any damages for which it is responsible.”
The legal filing also claims that the developer began to encounter financial struggles in repaying the real estate loan for the property. The developer states that the delinquent loan problem has been cured.
The legal wars at 188 West St. James could stretch into next year. At least 12 hearings are scheduled to review an array of issues in the Santa Clara County court proceeding.
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