SAN JOSE, CALIFORNIA - MARCH 24: 188 West St. James residential towers near San Pedro Square in downtown San Jose, Calif., on Tuesday, March 24, 2020. (Nhat V. Meyer/Bay Area News Group)
SAN JOSE — New defaults for delinquent homeowners association dues have engulfed a troubled housing tower in downtown San Jose whose future is tangled in multiple legal webs.
Litigation and real estate woes have engulfed the western highrise of a two-tower residential complex at 188 West St. James Street in downtown San Jose.
In April, nine condominium units were auctioned for a jaw-dropping average price of $31,900 in an effort by a homeowner’s association to recoup unpaid maintenance fees.
An entity operating as FPP MB that is affiliated with China-based real estate firm Z&L Properties developed the housing towers, which together contain 600-plus units. Each tower has about 303 residential units. The condos in the tower beset by legal and delinquency woes are all being offered for sale.
In the latest battle over the towers, the 188 West St. James Homeowner Association has filed default notices against the owner of the western tower, claiming the owner fell behind on payments for maintenance fees, causing the dues to become delinquent, according to documents filed on July 18 with the Santa Clara County Recorder’s Office.
Typically, a buyer of one of the condos in the high-rise complex would be responsible for paying the dues. The developer is on the hook for the payments for condos that are completed but unsold.
Delinquencies have arisen for an estimated 24 condos in the western tower, the county records show.
The FPP MB affiliate is also involved in a legal war arising from the auction of the nine condos in April.
Nationwide Reconveyance, a trustee for the 188 West St. James homeowners association, auctioned off nine condos with delinquent maintenance dues. The proceeds from the auction were slated to cover at least some, or even all, of the dues that FPP MB, the Z&L affiliate, owes. A tenth condo went to the homeowners association.
FPP MB fired back with a lawsuit in April against the buyers of the auctioned condos, the HOA and the trustee for the auction. That legal action is wending its way through a Santa Clara County court.
The Z&L Properties affiliate, FPP MB, is seeking to regain ownership of the units. FPP noted the auction was conducted despite a temporary restraining order issued by a county judge.
If the current bout of defaults proceeds, the HOA might again attempt to auction off the units.
The two towers are an eye-catching addition to the San Jose skyline and command a location on a choice block near bustling San Pedro Square, one of the Bay Area’s hottest spots for dining, drinking and nightlife.
Originally published at George Avalos