Submitted by Ronald Tennant with Metrocities Mortgage:
Wall Street Journal (05/21/08) P. C10; Frangos, Alex; Karp, Jonathan;
Sadovi, Maura Webber
As the majority owner of a Tampa, Fla., condominium complex, Providence Management is threatening to terminate the building's condo association in an effort to buy out residents for less than they initially paid and convert the 396-unit property back into rental apartments. The Chicago-based company has scheduled a May 28 meeting to vote on its termination plan, which has some residents up in arms. While the showdown stems from the larger real estate downturn, it is also the unintended consequence of a Florida amendment that was crafted to help severely damaged condo projects dissolve after natural disasters. Providence also contends that its original condo declaration agreement clearly spells out that the controlling owner can buy units from owners who oppose termination at fair market value, which is currently less than what most owners originally paid for their units.
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