WEST PALM BEACH, Fla. — WPTV is looking into the Green Terrace Condominium complex that was set to have its water shut off on Monday after being millions of dollars in debt with the city of West Palm Beach.
The city said once the water was shut off, it would look into condemning the building, forcing residents out due to it being unlivable, and because of the number of repairs needed on property.
WATCH: Armando Fana shares delinquencies of condo association with WPTV
Monday, Lopez reached out to residents who told him the water was still running.
Lopez turned to Armando Fana, the assistant city administrator with West Palm Beach, who said the reason is, because the association with the condos had filed for Chapter 11 bankruptcy.
The move prevented the city from shutting off water to the complex.
"It's still scary, because of the uncertainty," said resident Michelle McDonald.
She said the bankruptcy buys her precious, but uncertain, time to find a new place to call home. She pointed out some of her neighbors had already left, and that the dumpster was filled with personal belongings.
"This was not something they were prepared for. We don't know where we're going to be, what we're going to do, said McDonald. "As a matter of fact, this morning I just called an apartment complex and they're already booked up."
West Palm Beach
'We really need help': Extreme HOA debt to displace Green Terrace residents
Lopez dug for answers and found that the HOA had been falling behind on their bills over the last 10 years, despite residents claiming that they paid the HOA money every month.
"How was it they've been able to get away with not paying for so long?" asked Lopez asked Fana.
"Part of it was the city trying to not cause a situation where folks will have to be relocated but with the amount of money owed and the deteriorating conditions it's just come to a head where we really have to take action," said Fana. "Not just for the viablilty of our utilities and getting over a million dollars that is owed, but also for the health and safety for the residents, which is the primary concern."
The city of West Palm Beach said the complex owes:
- $1.4 million for water/wastewater
- $2.5 million in code liens
WPTV is working to get answers from the HOA president but has not heard back.
During our coverage, a property official was putting up notices about the bankruptcy but declined to comment.
Fana said though the bankruptcy temporarily pauses the city from shutting off the water, it doesn’t automatically absolve the condo association from meeting their financial obligations to the city regarding water/wastewater use.
So what's next?
Fana said the HOA must provide the city with adequate assurance within 30 days of payment for utility services.
Otherwise, the city will once again plan to shut down the water.
WATCH: Residents share frustrations, concerns with WPTV
The letter posted on resident doors gives 'background on current efforts' that reads:
"The association has faced significant challenges over the past decade, including various criminal and civil litigation and substantial mismanagement buy previous board members. The current board is actively working to address these issues and is optimistic the Chapter 11 filling will lead to a favorable outcome for all involved."
"We were hoping that they could become a more viable condo association, and it just hasn't happened and it's time to pull the plug," said Fana. "I think if you're in the process of trying to relocate, I would continue that process."
The city told Lopez that residents can still apply for up to $7,000 in assistance to pay for first, last and security deposit for a new apartment.
To date, we're told, 20 individuals have completed an application, with 16 having that met the eligibility requirements and are actively looking for units.
Only one has received direct assistance as the others are still finding new homes.
The city said that Palm Beach County has emergency rental assistance for residents who need help financially, here.
