It’s finally here! The lawsuit at the Elizabeth lofts is coming to an end. The Elizabeth HOA and the company Victaulic Co. have come to a settlement. The terms of the settlement have not been disclosed and at this point it is not in writing as the two parties are still working on the correct language of the settlement. It is believed that Victaulic Co. does not want the financial terms to be disclosed to the public. My best guess is that it is because they are still in litigation with The Edge, Avenue Lofts and Benson Tower.
Owners of units at Elizabeth were looking at a possibility of some serious special assessments, ranging from $10,000 to $15,000. Now with the settlement in place ( we hope) the possible assessment could be closer to $500 per unit.
As we hear more on the settlement amount, terms and conditions, we will let you know everything we hear!
Portland Condos in the news!
In today’s Oregonian, there is an article about the current situation going on in the Portland condo market with regards to the lawsuits that are taking place. The root of the problem is a company named Victaulic Co. They were the supplier of the faulty plumbing gaskets, couplings and valves in a number of Portland high rise buildings!
In this article, one agent said he considers this to be a minor issue and “blown out of proportion”. This is not a minor issue!! It has affected many condo owners as well as the values of their units.
Tell the many condo owners that have not been able to sell their units over the last year that it is “blown out of proportion”. Tell the owners of units that could not re-finance when rates were below 3.5% that it was “blown out of proportion”. One thing to keep in mind as HOA’s begin their lawsuits against Victaulic, Portland is not the only city that this company supplied parts to. How many HOA association across the country are dealing with this situation? Can this company absorb all of the possible lawsuits? If not, are future assessments a possibility if settlements are not large enough to cover the potential cost? To say that this issue is a minor issue, is, in my opinion, is not an accurate statement at all. Again, tell owners at The Elizabeth who may have had to take a $25,000 to $50,000 or more hit on the sale of their unit because a cash buyer was able to have the upper hand in negations, that this is a minor issue!
see article at : http://www.oregonlive.com/front-porch/index.ssf/2013/08/four_portland_condo_buildings.html