The family of Miami City Attorney Victoria Méndez flipped homes for hundreds of thousands of dollars more than they paid for the properties, which were managed by the Guardianship Program of Dade County, according to a WLRN investigation.
The nonprofit agency, which cares for incapacitated people or those who can’t afford to care for themselves, takes control of their assets and sells them to pay for their living expenses. It’s funded by Miami-Dade County and the state.
A two-part WLRN investigation found that Méndez’s husband, Carlos Morales, bought 14 homes from the program, renovated them and flipped them for notable gains. Morales’ company, Express Homes, allegedly used his connection to Miami City Hall to get code violations resolved, according to a lawsuit filed by a former homeowner.
Most recently, WLRN reported that Méndez’s mother, Margarita Méndez, purchased homes through her company, Gallego Homes, which she co-owned with Victoria Méndez until 2019. The city attorney told the public radio station that she was on the company’s registration for estate planning purposes, and that she included that on her public disclosure statements with the city.
Miami-Dade County paused funding the program after the initial report, and resumed payments on conditions that include that the Guardianship Program halt real estate sales until Miami-Dade County’s Inspector General’s Office completes its investigation.
The Guardianship Program sold six properties to Gallego Homes between 2010 and 2019. An attorney for Méndez’s husband told WLRN that she was not involved in the sales.
Like Express Homes, Gallego Homes purchased properties for bargain prices. One retiree who entered the Guardianship Program said his Coconut Grove townhouse was sold to Gallego Homes for $76,000, $34,000 less than its listing. It was on the market for zero days. Four months after the sale, Gallego Homes flipped the townhouse for $170,000. No permits were pulled for any work.
One deed for Gallego Homes was prepared by Miami Mayor Francis Suarez, a real estate attorney who was then a commissioner. Suarez also worked on documents for three Express Homes purchases from the nonprofit agency.
— Katherine Kallergis