Condo Owners’ future in doubt

 

By Sylvia L. Oliande

Staff Writer

 

 

 

SIMI VALLEY – When Zella and Quincy Bullock bought two units in the then-new Le Parc condominium complex in 1985, they saw the homes as investments for their retirement.

They rented out both units then moved into one of the condos in 1993 while leasing the other for $1,095 a month.

Then the Northridge Earthquake hit, shaking their home, but not quite their dreams. But the plans for their retirement eventually did fall apart when thecomplex's homeowners association became embroiled in a costly court battle with the contractor hired to make earthquake repairs.

Now the Bullocks and the other owners of 264 Le Pare condos each face a $26,300 assessment to pay a $6.7 million defamation and breach-of-contract suit won last year by ZM Construction against the Simi Valley LePare Homeowners Association.

"We were trying to have some vacation time, and now I can't even make the bills,"said Zella, 82. "My biggest fear is, what is going to happen here? We haven't got anything. They're taking our homes, they're taking everything."

D. Darren Zuzow, president of ZM, says he sympathizes with residents, but felt he had to defend himself against the association, which he claimed was telling subcontractors and insurance companies that his company did shoddy work in making earthquake repairs.

He lost his business and sued the association to recoup his actual construction costs and the money lost when his client list dried up. Also, since he did not file bankruptcy, he is still liable for the company's debts.

Zuzow said he is entitled to collect the entire $26,300 court-ordered assessment from each homeowner up front to satisfy thejudgment. Instead, he has asked for a $166-a-month assessment. This is in addition to the approximately $150 per monthin homeowner fees paid to cover utilities, insurance and other complex expenses.

"I didn't want them to lose their homes, which would certainly have happened if l'd collected the judgment up front," he said. "I certainly wanted to get what's owed me, butI didn't want to do to them what they did to me.

The Le Parc Community Association, thepanel that replaced the Simi Valley Le PareHomeowners Association,  is now contemplating a settlement offer from Zuzow.

Under the offer, individual owners would pay $330 a month in fees over 30 years. Zuzow would receive $220, and the remainder would be kept by the association to pay utilities and other expenses.    

To the condo owners, some of whom bought their units after the judgment and found out later that they were liable for the assessment, Zuzow's offer has done little to alleviate their concerns.

By their calculrtions, the debt would grow to $21 million by the end of the payment penod because of interest.

"You might as well say  $100 billion," Said Ferenc Gutai, president of the LeParc Community Association. Gutai said that during that time, the  $110 a month designated for utilities would not leave anything for  emergencies suchas roof repairs and equipment replacement. It costs  $4,500 a month to pay the utilities and maintain the grounds.   

Because of major cuts in maintenance services this year, the homeowners have had to clean the common grounds themselves. While the units facing the main road into thecomplex have been kept up, the doors and stair railings on units in the back are falling jnto disrepair, according to the owners.  

A court-appointed receiver for ZM has been collecting homeowner fees to satisfy the judgment, but the bills have been paid only sporadically. The association is now two months behind in utility payments and the gas company has threatened to shut off all common gas lines on Aug. 1.

Also, the association was trying tocome up with $6,100 on Friday, to pay a fire insurance premium.

"This is a day-to-day existence,"Gutai said. "I'm working with companies to buy as much time as I can.

And when two boilers broke down last month, leaving 30 families without hot water, Gutai had to take up a collection to have them fixed.

Residents said they are also troubled that the proposed settle-ment provides no limit to their liability; if one unit refuses to pay the assessment would be divided amongthe ones who can or will.

But Zurow said the association would be responsible for rmaking the $330-per-unit payment and it would be up to the board to determine how it was collected from owners.

 "lf they really feel there are people out there who can't pay it, then they can determine what needs to be cut and how to make it up so that they don't have to," he said. "I want the decision to be in their hands."

At a recent association meetmg, the condo owners were polled on how they want to proceed.  They have the option of negotiating with ZM, appealing the judgment, or walking away and filing bankruptcy individually.

The results of that poll are expected this week.

Meanwhile the residents have setup a fund, called the Community Association Rescue Effort, hoping to raise the $ 15,000 needed by July19 to continue its legal battle.

 

 

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