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Le Parc owners fear they could lose homes

By Dana Bartholomew
Staff writer


Jim Lee's day lilies are ragged at the edges -- as are his wife and almost 300 neighbors at the Le Parc condominium complex in Simi Valley.

"We have a major slug and snail infestation," he says, fingering his beloved plants. "There's nothing we can do. There are no gardeners. There's no one to kill 'em anymore."

Hibiscus turn yellow from lack of water. Walkways, despite efforts of industrious residents, fill with leaves and hazardous twigs. Hedges grow frowzy. A swimming pool remains closed by a health department order. And questions remain about continued trash pickup and outdoor lights.

For many Le Parc residents, that is the least of their problems.

The specter of losing their homes -- and the upkeep of their condominium complex -- as a result of a $7 million dollar judgment against their homeowners association worries many residents sick.

"My wife has been in tears, crying over this whole thing." Lee, 43, said. "She's a nervous wreck. This guy wants to take our homes; he wants to own the whole complex."

"This whole thing" is a complex legal battle between a Santa Barbara contractor, the Le Parc Homeowners Association and its tentative replacement that will be decided today in Ventura County Superior Court.

The case before Judge John J. Hunter is as layered -- and as acrid for the parties involved -- as a ripened onion. Pending appeals, legal experts say it could break new ground in defining the liability of condominium owners.

Simply put, a Santa Barbara contractor wants his money.

Darren Zuzow, president of the ZM Corp., won a $6.6 million judgment against the Le Parc Homeowners Association for breach of contract and defamation last summer after an 84-day arbitration hearing concerning repairs done after the Northridge earthquake in 1994.

"His business was almost crucified," said Glenn Campbell, his attorney. "He'll do better when he collects the judgment.

"You have to realize these people refused to assess themselves to settle this mess, and that's why we're at this level -- they put their heads in the sand; they think this is a bad dream that won't go away."

Failing a bid for bankruptcy, the association was forced to hand over to a court-appointed receiver most of the money it collected from residents for maintenance in order to pay off the debt.

Homeowners, tired of their lush premises falling into ruin, fired their association last month and formed a new one to assess money for general upkeep.

"We wanted to be able to retain control, collect our own money and make sure we maintain the standard of living in the complex," said Ferenc Gutai, acting president of the new Le Parc Community Association.

The contractor cried fraud and has pleaded that Hunter grant him the right to collect his debt from the new association. Furthermore, he has also asked to collect $2,000 a year -- or $166 a month -- from each individual homeowner. If homeowners don't pay, they stand to lose their homes as a result of liens and foreclosures.

Meanwhile, the old association debt has risen to $7.2 million, with interest mounting at a rate of $51,000 a month.

"The money they would be paying doesn't even pay the interest," said James Lingl, the attorney representing the original association, noting the 10 percent rate. "That would leave absolutely nothing for maintenance and development.

"What ZM's motion really amounts to is a request for ZM to assess each homeowner $500 per unit, and pay off the judgment and maintain the subdivision."

Le Parc residents feel that, as members of a corporation, they shouldn't be held liable for what a few board members did and said.

"People can be ruined just because they are members of a condo association," said Donna Miller, 40, whose one-bedroom home she bought for $112,000 13 years ago has dropped in value to $80,000. "I tell everybody not to buy a condo.

"It's been a nightmare, an actual nightmare. I'm thinking of moving to another state, move to a trailer in Utah."

Homeowners, many on fixed incomes, worry they cannot afford to pay double assessments of $300 in addition to their mortgages.

"I look OK," said Roz Wiesner, 63, who lives on a fixed income of $978 a month, of which almost two-thirds already goes to pay her mortgage and HOA assessment.

"But we don't sleep nights because we're afraid of losing our homes. I adore my children, but I don't want to live with them. If that assessment comes, I would have to walk away."

Other homeowners worry the unlimited liability contained in today's motion could force them to pay what their neighbors can't -- a current bill estimated at $43,000 and possibly more through continued assessments that could dog them wherever they go.

Some residents, who recently bought into the complex after the judgment without being informed of the legal quagmire, grieve untold debt.

Others fear they can't sell their homes because of their depreciation. Real estate lenders, in turn, worry their properties would suffer the continued stigma of attached debt.

In addition to losing sleep, some homeowners have resumed smoking. Others say they are too depressed to clean their residences. One man, anxious about the results of today's hearing, checked into a mental hospital.

For help, homeowners have scheduled a prayer vigil the night before the trial.

"We're trying to keep up the place and to keep our values," Wiesner said. "We can't believe what's happening."

 

 

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