Condominium owners face a new crisis eight months after Grenadier Lakes at Welleby’s former board members quit and left residents with expensive repairs and crushing evacuation orders.
The association’s bank, City National Bank, wants the board to issue a $3 million assessment demand, current Grenadier Lakes board members told CBS News Miami.
“I’m going to read this to you verbatim,” said Keith Tannenbaum, a 27-year resident elected to the association’s board earlier this year.
A financial record that board members said City National Bank filed with the Florida Department of State shows a $3 million loan to the condo association for “common element repairs” that includes “seawall repairs.”
Grenadier Lakes at Welleby is 22 miles west of the Atlantic Ocean.
“We don’t have a seawall,” Tannenbaum said. “In my opinion, it looks like somebody from this association walked into the bank and said I need $3 million, and the bank just said, ‘Here you go.'”
City National Bank did not respond to CBS News Miami’s messages seeking comment on Monday. Neither did former Grenadier Lakes at Welleby board members in charge of the community’s financials in 2022.
The association signed a contract with a company to repair 15 roofs in January 2022, according to a document shared with CBS News Miami by current association leaders. Eight months later, the association secured a construction loan, the document said.
Residents said they paid for and continue to pay for the roof repair loan. The results of the work are mixed.
Community faced mandatory evacuation orders in the past
Earlier this year, residents complained about roof leaks and mold. At the time, the community faced mandatory evacuation orders because of structural problems.
The entire board resigned. Months later, a newly elected board stepped in. They hired engineers.
However, as the board considers four bids to fix crumbling concrete and an assessment that will cost condo owners between $1.1 and $1.5 million, City National Bank called.
“What they’ve done is come to us threatening,” Tannenbaum said.
The association leaders said the bank wants collateral that the loan officer did not collect in 2022: a $3 million assessment demand.
That assessment would not raise monthly payments for residents, association leaders said. However, anyone trying to sell their unit would have to pay their $17,000 share in full, association leaders said.
“To have three payments in one year to three different entities could be a problem,” Tannenbaum said.
The association board has until Friday to respond to the bank. If leaders refuse the demand, the bank could raise interest rates and push the community into bankruptcy.
Board members plan to follow the advice of the association’s lawyer, Tannenbaum said.
