Judge orders condo association to pay water bill despite poverty plea

Cyber Citizens for Justice, Inc.

ccfj.net |

Article Courtesy of The Palm Beach Post
By Christine Stapleton   

Published July 15, 2016

West Palm Beach -- A judge on Monday ordered the condominium association to pay whatever it takes to keep the water from being shut off at Green Terrace -- an 84-unit apartment complex once raided by the FBI in its investigation of South Florida sober homes.
    
The city shut off water to the complex Thursday morning when the board failed to pay a long-overdue $22,000 water bill. The association, embroiled in a bitter lawsuit with residents over finances, told residents there was not enough money to pay the bill.

However, some bills are being paid, including pool service and termite control in Bailynson’s units, Pincus said. The real reason, he said the board doesn’t want to pay the water bill is so members can use the shutoff as leverage to dissolve a year-old legal injunction.

The injunction bars the board from raising assessments, performing construction and borrowing an additional $2.5 million from a company owned by Bailynson. The board already has taken out a $1.5 million loan from Bailynson’s company. That loan, with a 24 percent interest rate, requires the board to make monthly interest payments of $30,000.

Matus said, as president, she did not have details of the association’s finances. She just signs checks when her signature is needed. However, she said she knew that bills that have been paid this year were for services last year and that all accounts are in arrears. The association has been paying the minimum amount necessary to keep the water on, Matus said.

As for the city’s claim that it tried to work out a payment plan to prevent the shutoff last week, Matus denied those discussions occurred. City officials did not return a call for comment.

Matus said she did not know how or when the association would comply with the judge’s order.

“You can’t pay something you don’t have money for,” Matus said.

Read More: http://www.ccfj.net/

#Miami ’s real estate market is coming back down to earth

By Nicholas Nehamasnnehamas@miamiherald.com

miamiherald |

Home sales fell during the second quarter in Miami and Miami Beach

Prices may start to fall soon, too

Miami is entering a “buyer’s market”

Welcome to the slowdown.

Miami’s residential real estate market has cooled off significantly over the last year. But it’s not crashing and that’s a sign of stability, according to a quarterly report from brokerage Douglas Elliman and New York-based Miller Samuel Real Estate Appraisers & Consultants.

“This market has never had stability,” said Jay Parker, Florida CEO of Douglas Elliman, of the region’s perennial boom-and-bust cycles. “We have gone through tremendous growth over the last few years. It’s just natural that it will start to calm at that point. ... But it’s not leading to an implosion. It’s leading to a market that is more sustainable.”

We’re shifting to a buyer’s market, and sellers may have to adjust their expectations. Jay Parker
The report found that in the second quarter of 2016, the number of home sales fell 25 percent in Miami Beach and the barrier islands compared to the previous year. In greater downtown Miami and its major suburbs, sales were down 12.5 percent annually. Even so, they stayed above historical averages.

Those numbers cover both condos and single-family homes. The Miami Beach market includes Sunny Isles Beach, Bal Harbour, Bay Harbor Islands, Key Biscayne and Fisher Island. The Miami market includes Aventura, Coral Gables, South Miami, Pinecrest and Palmetto Bay.

Sellers are having a harder time unloading properties in today’s market: The number of active listings jumped in both Miami and Miami Beach, as did the number of days homes are staying on the market.
Prices haven’t come down yet in many areas, but that trend can’t continue, Parker said.

“We’re shifting to a buyer’s market, and sellers may have to adjust their expectations,” he said.
Median sales prices rose to $280,000 in Miami (up 7.7 percent annually) and to $435,000 in Miami Beach (up 2.4 percent).

The sales slowdown is mainly the result of a strong dollar and weak economies abroad. After the recession, foreign buyers took advantage of a struggling dollar to scoop up Miami real estate, fueling a frenzied boom. Now that the currency situation has reversed, they can’t compete at the same level.

Broward and Palm Beach counties, which rely less on foreign buyers, generally did better, the report found.

Read More: http://www.miamiherald.com/

As market struggles, Venezuelan oil tycoon suspends sales at Miami condo project

By Nicholas Nehamasnnehamas@miamiherald.com

miamiherald |

Boulevard 57 is on hold

Miami’s luxury condo market is struggling as foreign buyers evaporate

Morningside project’s developer had business ties to regime of Hugo Chávez

A luxury condo project slated for Miami’s quiet Morningside neighborhood hasn’t been as popular as its developer, Venezuelan oil man Gerardo Pantin Shortt, had hoped.

Sales have been suspended at Boulevard 57, an eight-story tower at 5700 Biscayne Blvd. where units start at $600,000, a spokeswoman for Pantin confirmed Monday. Pantin’s family made its fortune in Venezuela’s oil industry before, during and after the regime of Hugo Chávez.

“The sales have not been canceled, we are just reducing our sales cost for the next two quarters,” said a statement provided by the development team. “The condo market has been very slow for the last six weeks and as you may know we are entering in low season for the condo market and we want to cut budget for the next months or until we feel the market has moved for better.”

The project’s sales center will remain open.

A strong dollar and weak economies abroad are crippling the foreign buyers who snapped up Miami properties over the past few years. Several new projects have been canceled or put on hold as sales slump, including Ion East in Edgewater and the Collection Residences in Coral Gables.

Existing residential sales fell 10.4 percent in May, according to the Miami Association of Realtors.
Boulevard 57 had pitched its off-the-beach location as appealing to domestic buyers. But it appears they didn’t bite.

“I think the industry expected the project to get put on hold,” said Peter Zalewski, a South Florida real estate analyst. “They were a victim of market timing. I was invited to the launch party [last month] and at the time I told everyone I knew to go because I thought it would be the last launch party of this real estate cycle. ... Going forward, you’re likely to see more projects get shelved.”
Zalewski said it could take two years before the condo market is back in good shape.

But a planned retail component at Boulevard 57 may still happen.

The Real Deal, which first reported the news that sales had ended, said the project may up its retail space from 40,000 to 50,000 square feet and would like to attract a Trader Joe’s or Publix. The website also reported that the entire site may be on the market for $26 million.

Unseen forces

Pantin stayed quiet about his involvement in Boulevard 57, keeping his name out of the press and public records after a company he controlled paid $15 million for the 2.3-acre site in 2014. A lawsuit filed by an ex-partner alleged that Pantin used shell companies and front men to hide his identity.

His business ties to the Chávez government drew criticism when they were revealed by the Miami Herald in April and emphasized the unseen forces shaping Miami’s real estate market.

“Miami has become the home for exiles that have been disenfranchised from Venezuela,” Miami Mayor Tomás Regalado said at the time. “There should be a moral stigma when you do business with the government in Venezuela while the people suffer and then come here to do grandiose projects.”

Our relationship with the government is strictly commercial. Gerardo Pantin Shortt

Patin said safety concerns in Venezuela led him to minimize his public role in Boulevard 57 and that his family, which earned $991 million in contracts from Venezuela’s state oil company between 2008 and 2015, played no part in politics. An economic crisis and food shortages have led to chaos in the Latin American nation.

“Our relationship with the government is strictly commercial,” he said.

The setback for Boulevard 57 means developers have tried and failed to bring condos to Morningside since 2003. A previous project, called Kubik, was derailed by neighbors angry over its scale.

Read More: http://www.miamiherald.com/

Let's End Fraud:: Adopt On-line Voting NOW!

BPBALLOT LIVE DEMONSTRATION

Presented by:
Donna DiMaggio Berger, Esq.
Becker & Poliakoff Shareholder
&
Rosa M. de La Camara, Esq.
Becker & Poliakoff Shareholder

Whether you are being asked to elect a new board, approve a material alteration, amend your governing documents or waive reserves, Becker & Poliakoff's new online voting system, 

BPBALLOT, allows you to weigh in on these important issues for your community by casting your vote from the comfort and convenience of your home or office.

BPBALLOT has been specifically designed to comply with Florida law to allow members in condominium, cooperative and homeowners' associations to cast their votes online. Online voting can be a more effective, secure way for your association to conduct membership votes.

Our demonstration will take you through the process of an election and an amendment vote, and will explain how online voting works from the perspective of a member, manager and a board member

Thursday, August 4, 2016
12:00 PM - 1:30 PM
Registration begins at 11:30 AM

Contact Leydis Hernandez at lhernandez@bplegal.com or

305.262.4433 Ext. 11041 for more info.

He rented his condo to a fugitive — and the guy won’t leave

Cyber Citizens for Justice, Inc.

ccfj.net |

Article Courtesy of The Miami Herald
By Kyra Gurney   

Published July 5, 2016

The trouble started in April, when Sergey Umrikhin’s new tenant paid his $1,500 rent a month late — surprising, considering records showed $138,000 flowing into his bank account in December alone.

Then Umrikhin received a violation letter from the property manager at Avant Garde, the highrise Hallandale Beach condominium complex where he owns a unit. Umrikhin’s tenant was throwing cigarettes over the third-floor condo balcony and drinking out of glass bottles on the pool deck, the letter said.
 

Umrikhin filed eviction papers in mid-May, after two months of late payments.

After he found out about the Interpol “red notice,” Umrikhin said he contacted the Hallandale Beach Police Department the next day, and called the Federal Bureau of Investigation and the Department of Homeland Security in mid-June. Two weeks later, Kholodnyak and his wife are still in the apartment, according to Umrikhin.

The Herald was unable to determine what action, if any, has been taken by federal authorities in response. The FBI would not confirm whether Umrikhin had called the agency, and a spokesman for Homeland Security in Miami said the department “does not confirm or deny any ongoing investigations as a matter of policy.”

The U.S. Marshals Service, the agency with primary jurisdiction over foreign nationals on Interpol’s wanted list, said it is unable to arrest Russian nationals on the list because the United States and Russia don’t have an extradition treaty.

“At this point in time, the U.S. Marshals Service is not investigating or looking into Mr. Kholodnyak. Since there is no treaty between the U.S. and Russia, Mr. Kholodnyak can’t be picked up on the Interpol notice,” explained Senior Inspector Barry Golden, a spokesman for the U.S. Marshals Service in Miami and Fort Lauderdale.

Foreign money, some of it from individuals with questionable financial backgrounds, has flooded the South Florida condo market,so much so that the Treasury Department announced temporary regulations requiring title insurance companies to identify the owners of shell companies buying high-end Miami real estate in cash.
 

“If you’re renting out luxury units to an international clientele, you need to get professional advice to see who they are. Kenneth Rijock, former money launderer who became a financial crime consultant

But the more restrictive rules do not apply to renters, leaving landlords at risk of leasing their condos to tenants with sketchy backgrounds.

The online background check Avant Garde required Kholodnyak to complete failed to turn up the charges against Kholodnyak in Russia, or his presence on Interpol’s wanted list.

The background check, provided to the Miami Herald, states “All Clear,” highlighted in green, followed by a short explanation: “No criminal or eviction history found.”

The service Avant Garde used searches national records, but does not perform an international background check, according to its website. Avant Garde referred the Herald to the condominium complex’s lawyer, who did not respond to requests for comment.

International background checks are typically more expensive and take longer to complete than searches of national or state criminal records.

Kholodnyak responded to the Miami Herald’s questions through his wife, Olga, whose English is better than his.

“When Vladimir moved to the apartment, he gave all information to Avant Garde to the building manager,” Olga Karpenko told the Herald. “If they approve him, it means they checked everything about him that they need.”

Kholodnyak and his brother Alexander, who is also on the Interpol list, owned a construction company in southwestern Russia. They allegedly erected residential buildings without obtaining permits, and failed to finish some of them, defrauding clients who had purchased units in the buildings, according to Russian media reports.

The brothers were charged with fraud and illegal business practices in July 2014, a Russian Embassy spokesman, Ivan Filatov, told the Herald. Both men were added to Interpol’s red list in December 2014.

“Our position is that the charges are politically motivated,” said Michelle Estlund, a criminal defense attorney representing Vladimir Kholodnyak. Estlund said Kholodnyak has applied for asylum in the United States and that he has petitioned to have his name removed from the Interpol list. Kholodnyak is still waiting for a final response in both cases, according to Estlund.

Vladimir Kholodnyak “has problems with Russia with politics and doesn’t want to talk about it,” his wife told the Herald. Alexander Kholodnyak could not be reached for comment.

Vladimir Kholodnyak’s asylum lawyer, Anis Saleh, cautioned that some foreign governments have been known to use criminal charges as a means of political persecution. “There are many, many instances of people who are designated as fugitives or criminals and it’s later shown that it’s a measure of persecution or extortion or revenge,” he said.

The eviction case against Kholodnyak is pending. Umrikhin said he was ordered to update his three-day eviction notice at the most recent hearing, and that he is now waiting for a new hearing to be scheduled. Even if Kholodnyak agrees to pay the rent on time, Umrikhin still wants him out.

“I think he may provide some kind of danger to other people,” Umrikhin said.

Umrikhin and his partner have received what they interpret as threats from Kholodnyak in recent weeks.

“Listen to me you conman, I am already tired of you, mind your own business and take care of your health!” Kholodnyak e-mailed Umrikhin in Russian on June 22. “Shut your mouth and keep quiet.”

Maj. Pedro Abut, a spokesman for the Hallandale Beach police, said the department did not have a record of Umrikhin’s complaint and might have passed the information on to federal authorities without recording the complaint. Abut said the department contacted federal authorities following the Herald’s request for comment.

The Russian Embassy has not been contacted by U.S. law enforcement agencies regarding the Kholodnyak brothers, said spokesman Filatov.

“When Vladimir moved to the apartment, he gave all information to Avant Garde to the building manager. If they approve him, it means they checked everything about him that they need."

Olga Karpenko, tenant’s wife

In addition to Kholodnyak’s alleged fraud in Russia, Umrikhin has questions about his business dealings in the United States. The Herald found six companies registered in Kholodnyak’s name or in the names of apparent relatives, of which five appear to be shell companies. Two of the companies purchased three South Florida properties in 2014, all of which have since been resold.

“If you’re renting out luxury units to an international clientele, you need to get professional advice to see who they are,” said Kenneth Rijock, a former money launderer who became a financial crime consultant.“Unfortunately, many unit owners, when they see a large amount of rent that far exceeds the amount they’re paying for the mortgage, they see stars in their eyes and if it’s too good to be true they’ll go for it.”

Boris Vedenyapin, a broker who was hired by both Vladimir and Alexander Kholodnyak, said he was “not really” aware that Vladimir was on Interpol’s wanted list when he agreed to help him find an apartment. “He told me that he had some problems in Russia,” Vedenyapin explained.

“Anyway, they were just asking me to help them with the rental. I did my job. I just showed them a few properties.”

Rijock said some in the industry are becoming more careful about vetting prospective clients.

“The last thing a landlord wants is to see a picture of his unit in the newspaper involved in a drug bust,” he said.

Read More: http://www.ccfj.net/

Mark Your Calendar: FREE DBPR WORKSHOP FOR CONDO OWNERS

WHEN:  Tuesday, July 19 2016

TIME: 6:30pm to 8:30pm

WHERE: MDC InterAmerican Campus Room 3103
 627 SW 27th Ave Miami 33125

Conducted by  Representative JOSE JAVIER RODRIGUEZ

Email: Jose.Rodriguez@myfloridahouse.gov

Telephone: (305)854-0365

Short-term rentals become top concern for condo owners, residents

WATCH VIDEO HERE: http://www.ccfj.net

Rentals impacting quality of life, condo residents say

Cyber Citizens for Justice, Inc.

ccfj.net |

THE TIDES:

The view of sun-kissed tourists hanging poolside on a gorgeous South Florida day wouldn't seem out of place unless you knew The Tides isn't a hotel, it is a condominium with by-laws provided to Local 10 News by condo owners that say in no event shall any lease be for a period less than 90 days.

"If you look at VRBO, there are 143 listings. You wouldn't think of that as a condo, you think of that as a hotel," London said. "There are so many short-term renters here it just makes life difficult, challenging."
  

"The washing machines and dryers are always broken," London said.

Nearly everyone the Call Christina team encountered while Hassman and London took our crew for a tour of the grounds said they were visiting.

Several large groups said they were visiting from Argentina.

The Call Christina Team found more than 40 units listed on an Argentine-based website called Viajo a Miami Beach.

Canadian based Somil Corporation advertised 14 Tides units on its website.

Broward County property records confirm the company owns several units at the waterfront condominium.

The Call Christina team also checked with Broward County's Records Taxes & Treasury Division.

Director Tom Kennedy confirmed that Somil has a current account registered with the county's Tourist Development Tax Section.

In an email exchange between London and a Somil representative provided to Local 10 News by London, a company representative confirmed a rental unit reservation at The Tides for a period of eight days, which London points out is much less than the 90-day minimum as per the condo's own rules and regulations.

"That type of activity causes so much wear and tear on the building," London said.

Some of the advertised rentals say a 1-bedroom fits four; in another listing a 2-bedroom is said to sleep 6.

"Water has gone sky high, because you have six to eight people in an apartment," Hassman said.

The condo owners who spoke with Local 10 News also pointed out a tiki hut erected near one of the pools and a lobby café selling tourist sunglasses and sunhats.

"Towels, mugs, everything an owner would need right?" Hassman said.

London explained how visitors are given resort-style temporary plastic bracelets.

The moment our crews walked into the management office to inquire about the residents' concerns, like the concierge desk of a hotel, a staff member was snapping those resort-style bracelets on a couple who said they were "guests" for a couple of nights.

The Tides executive manager Eveline Smythe said she would need to get permission from her bosses for an on-camera interview, and then never returned a follow-up inquiry.

Calls and emails to the Akam management company and association attorney Marci A. Rubin went unreturned.

Also not willing to talk was resident board member and real estate broker Joe Cimino, who not only shut the door on Local 10's Christina Vazquez, but then promptly locked the door.

Requests for comment sent to Somil, Viajo a Miami Beach and VRBO were unreturned.

Airbnb tells Local 10 News that they ask all hosts to follow their local regulations to include the rules of their HOA's.

THE BOOMING BUSINESS OF VACATION RENTALS:

"You should not be renting to people for a one night's stay," said Hollywood Commissioner Patricia Assefff. "That is ridiculous."

Asseff also serves on the Broward County League of Cities and said coastal cities have been dealing with issues that have come about due to the vacation rental industry to include zoning, property rights and public safety.

The American Hotel and Lodging Association recently called short-term rental platforms an "illegal business," accusing them of dodging taxes and ducking rules.

"We share the concerns local residents have expressed about the growing number of commercial operators who are using sites like Airbnb to run multi-unit, full-time lodging businesses without any oversight," AHLA stated on its website.

The associates said a growing number of commercial landlords are using rental platforms to run "illegal hotels."

LARGELY UNREGULATED:

The cities of Fort Lauderdale, Dania Beach and Hollywood have recently created vacation rental ordinances.

The Tides, however, falls outside the scope of Hollywood's ordinance, which focuses on single-family neighborhoods.

The Department of Business and Professional Regulation, the state agency that regulates condos, tells the Call Christina team that the renting of a condo unit in and of itself is not a violation of the Florida condo act and that document enforcement falls outside the division's jurisdiction, leaving The Tides in turbulent waters of seemingly regulatory limbo.

Hassman and London said they continue to watch vans full of tourists arrive and depart from their condo building, continue to struggle finding a spot by the pool, continue to worry that their HOA dues are being siphoned to support a rental operation in violation of their association's rules, continue to deal with a board and management company seemingly unwilling to reign in the people making money from breaking the rules.

They want state regulators to step-in and take a look.

"It is a mess," Hassman said.

"It is completely frustrating," London added.

The Call Christina team has asked state regulators to investigate whether the unit owners renting their units online need to secure public lodging licenses as required by Florida law based on how the units are being advertised. We will keep you posted.  

Read More: http://www.ccfj.net/