Once heralded as a beacon of the real estate rebound in 2014, The Villas on Antique Row, a luxury townhome community in West Palm Beach, is now facing a much different reality. Nearly a decade after its debut, residents of the three-story townhomes along South Dixie Highway are grappling with a proposed $12.6 million in repairs, sparking discord within the community.

Homeowners are facing the possibility of a massive financial hit, with a worst-case scenario predicting an assessment of up to $221,000 per unit to cover the needed repairs. The costly estimate has left some owners questioning the necessity and fairness of the across-the-board fee, particularly as not all units appear to have the same level of damage.

Structural Concerns and a Costly Lawsuit

The homeowners association (HOA) filed a lawsuit against the developer in 2021, alleging defects such as cracking walls, corroding plumbing, rusting gates, and the erosion of load-bearing soil. A report from West Palm Beach-based Slider Engineering Group in April 2024 highlighted additional structural concerns, including concrete shrinkage and a lack of reinforcement in certain construction elements.

The HOA, in a letter to homeowners, acknowledged the “sticker shock” of the repairs but emphasized that the work is “absolutely necessary” to address the issues outlined by experts.

Not all owners, however, agree. Some, like Tim Johnson—who owns two shops and a townhome in the development—argue that their units show no signs of damage and that the blanket assessment is unfair. "My building has no problems, but they are treating all the buildings the same," said Johnson.

Community Division Over Repair Costs

The debate over who should foot the repair bill has split the small community. Homeowners opposed to the across-the-board assessment have banded together, hiring an attorney to negotiate with the HOA. They argue that units without damage should not be held responsible for repairs to other buildings. Attorney Frank Lynch, representing the dissenting homeowners, pointed out that the proposed assessments in some cases exceed the original purchase price of certain units, especially the commercial spaces below the townhomes.

Lynch also contends that the HOA overstepped its authority by suggesting all units share the repair costs equally, a move he says violates the association’s declaration of covenants. According to Lynch, any repair costs related to construction defects should be assessed individually based on the specific unit affected.

The HOA, however, remains confident in its lawsuit, which has now dragged on for more than three years and names multiple subcontractors as plaintiffs. Mediation is scheduled for the fall, with a trial set for December if a resolution cannot be reached.

The Growing Divide

For many residents, the dispute has upended life in the once-peaceful, tree-lined community. The Villas on Antique Row were initially seen as a symbol of recovery, built on land that had sat vacant since 2006. Early buyers, who paid between $320,000 and $490,900 for their homes, watched as property values climbed to as high as $1.3 million in recent years, fueled by a surge of pandemic-era homebuyers.

Now, the prospect of living through "invasive, loud, dusty, disruptive and costly" repairs, as the HOA described them, is causing many to reconsider their future in the community. Johnson and others worry that some owners may be forced to move out during the construction process, further adding to the frustration.

The division within the community over how to address these issues has led to rising tensions. The HOA has proposed taking out a loan to cover the repairs, which would require a vote by the 46 unit owners. But with opinions split on the best path forward, the situation remains uncertain.

Legal Complications and What Comes Next

Michael Gelfand, a West Palm Beach attorney who specializes in real estate and association law, noted that situations like this are not uncommon in HOA communities, where repair obligations are governed by the declaration of covenants. In this case, the language of the covenants will likely play a key role in determining how the repair costs are divided.

While the situation is still unresolved, the HOA is hopeful that the repairs will restore the community’s market value. "We are equally disappointed and upset over the magnitude, time, expense, inconvenience, and costs to properly fix the defects in our community," the HOA wrote in its August letter to residents. "Nevertheless, we are confident that this repair process will enable us to recapture our long-term market values."

As the community waits for a resolution, homeowners are left to navigate not only the financial implications of the repairs but also the growing divide among neighbors. The once-celebrated townhomes on Antique Row are now at the center of a costly and contentious battle—one that is far from over.

 

For all your South Florida real estate needs, reach out to the Mastropieri Group to find the ideal home for you. Contact us today at 561-544-7000 to discuss how we can assist you in achieving your real estate goals. Whether you’re buying, selling, or looking for investment opportunities, our team is ready to offer expert advice and support to help you navigate the dynamic South Florida real estate market. Let us put our expertise to work for you and turn your real estate ambitions into reality

Homes for Sale in Boca Raton

 


Posted by Larry Mastropieri on

Tags

Email Send a link to post via Email

Leave A Comment

e.g. yourwebsitename.com
Please note that your email address is kept private upon posting.