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    Troubles continue at gated complex

    A third lawsuit involving repairs has been filed at the East Lake development.

    By ROBERT FARLEY

    © St. Petersburg Times, published February 9, 2001


    EAST LAKE -- Repair bills are overdue, and neighborhood peace in Nature's Watch at Boot Ranch is crumbling nearly as fast as a piece of termite-damaged lumber.

    At the heart of the strife, which recently generated its third lawsuit, is extensive water damage in several of the luxury townhouses in the gated development, and who should pay for it.

    Last fall, the former board members of the homeowners association determined that the repair cost, which some think may end up at $2.5-million to $5-million, ought to be shared among all of the owners of the development's 182 units. That could amount to $13,700 to $27,400 per owner.

    Late last year, the homeowners association sued the developer and builder of Nature's Watch, claiming that shoddy work was to blame for water and termite damage in at least six, and possibly all, of the buildings. That suit is pending.

    Then a group of more than 60 residents sued the homeowners association, claiming it overstepped its bounds in assessing them for the cost of repairs. The residents who sued argued that individual homeowners ought to be responsible for most of the work.

    In December, several of those who filed the suit led a successful campaign to overthrow six members of the association's nine-member board.

    Now a third lawsuit has been filed by 22 residents whose buildings have sustained the worst damage. The suit is against the homeowners association and all of its new board members.

    The lawsuit claims that the new board members have intentionally refused to take steps to collect about $350,000 worth of assessments levied by the previous board for repairs. That has left them with lingering and unfinished repairs.

    "The current board -- their agenda is not to repair the buildings," said one of the latest lawsuit's plaintiffs, William Isaacs.

    Andrea Klak, the new president of the homeowners association board, called the claim that the new board is willfully ignoring collection of assessments a "bald-faced lie." Klak said the board promised only to postpone assessments until the association's finances are put in order.

    Klak said the previous board was spending all of the association's money on repairs, neglecting things such as lawn maintenance and irrigation, and was tapping into reserves. The board also needs to determine how much the association is obligated to pay for repairs, Klak said. "We need to find out what we're really responsible for," she said. "We can't just keep paying out."

    Complicating things, she said, is that some homeowners are getting settlement checks from their homeowners insurance companies but are not turning over that money, even though the association already paid for most of the repairs.

    The latest suit, filed last month, contends that the new board members were acting in their own self-interest by not collecting assessments because they all owed money. In response, Klak said all board members are now current with assessments and all board members have removed themselves from the earlier suit against the homeowners association.

    The latest suit asks for a judge to dissolve the homeowners association "for waste and misapplication of corporate assets" and to appoint a custodian to take over responsibility and complete repairs.

    The problems at Nature's Watch date back to late 1998, when several homeowners discovered serious moisture problems with their homes, including water damage through the ceilings and walls, damage from rotted wood and termites, and exterior cracks along the chimneys and stucco.

    The exterior damage resulted in water penetrating into homes and causing additional interior damage, the suit states.

    The homeowners association's rules state that it is responsible for maintaining the building's exterior. What constitutes "exterior" will be up to the courts to decide.

    Meanwhile, four buildings are in various states of repair, including the removal and replacement of balconies, roofs, stucco, rotted and termite-infested wood used to support structures, exterior sidewalls and outside windows, and miscellaneous painting and restoration work.

    The workers still are there, said attorney Henry Stein, who represents the 22 homeowners who sued last week, but "they are not there in force or working at the rate the project deserves."

    If repairs aren't completed by the rainy season, he said, "we're going to have a mess."

    "My clients are in a difficult position," Stein said. "They need help and they need it now."

    Klak said the new board hadn't even been in office for a month before the lawsuit was filed.

    "The new board took over and we got railroaded," Klak said.

    Board members are particularly incensed that they were sued personally, she said.

    Everyone seems to agree that things are only going to get uglier.

    "It's an awful, awful situation," Stein said.

    "It has been a royal mess," Klak agreed.

    Isaacs said: "This is going to turn into a long, drawn-out, nasty thing."

    -- Staff writer Robert Farley can be reached at (727) 445-4185 or farley@sptimes.com.

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