Residential
San Francisco
Z&L Properties sues over sale of “$1M” San Jose condos for $32K
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HOA files more default notices against San Jose condo developer
Legal battle centers on unpaid fees for unsold units at tower built by China-based Z&L
From left: Z&L Properties’ Zhang Li and National Reconveyance’s Jason Tatman along with 188 West Saint James Street (Getty, Google Maps, Z&L Properties, National Reconveyance)
A homeowners association embroiled in a legal battle with the Chinese developer of a condominium tower in Downtown San Jose has piled on more default notices.
The 188 West St. James Homeowner Association filed default notices against an affiliate of Z&L Properties, claiming the firm fell behind on payments for maintenance fees, causing HOA dues to become delinquent at 188 West St. James Street, the San Jose Mercury News reported.
The developer is on the hook for the HOA dues for condos that were completed but unsold at the 320-unit condo tower.
The dues have become the center point in a bitter legal dispute between the developer of two side-by-side housing towers and National Reconveyance, the San Diego-based trustee for the HOA in the western highrise. The 320-unit eastern tower stands vacant.
Delinquencies have mounted for an estimated 24 condos in the western tower, county records show.
In April, Z&L Properties sued the trustee and bidders who violated a court restraining order to buy 10 condominiums auctioned at cut-rate prices.
Despite a temporary restraining order by Superior Court Judge Helen Williams, the HOA hosted an April 8 auction of 10 vacant condos to collect HOA maintenance fees that were unpaid by building developer Z&L.
Nine homes were sold by Nationwide Reconveyance, which conducted the auction, for between $31,500 to $32,300.
“The fair market value of each of the units exceeds $1 million,” Z&L Properties stated in the April 10 court filing. The damages sought by Z&L were not disclosed. The Z&L Properties affiliate, FPP MB, is seeking to regain ownership of the units.
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The default notices issued by the homeowners association may indicate another condo auction to be contested by Z&L, according to the Mercury News.
It was late last year that Z&L, owned by disgraced Chinese developer Zhang Li, faced foreclosure for failing to pay homeowner association dues for 190 unsold units at the twin tower complex. A Z&L Properties affiliate that owns the unsold condos in the west tower had in December owed unpaid assessments of more than $1.3 million.
— Dana Bartholomew
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