WEST PALM BEACH, Fla. — There's a cautious sign of optimism at the Green Terrace Condominiums, as the HOA has made its first deposit to try and clear its multimillion-dollar debt with the city of West Palm Beach.
This is a story WPTV's Joel Lopez has been tracking since mid-April, when residents had two weeks until the city of West Palm Beach was planning on shutting down the water, and condemning the complex.
WATCH: HOA starts repaying debt, but resident still face uncertainty
Just 30 days ago, the situation took a critical turn when the Homeowners Association (HOA) filed for bankruptcy protection.
This initial filing had to serve as a lifeline for the community blocking the city from cutting off water, which would have made their residences uninhabitable.
Wednesday marked the deadline for the HOA to demonstrate its ability to repay the nearly $4 million debt that has accumulated over the last decade.
Lopez reports that progress has been made: The HOA made a significant initial payment of $36,000 to the city, marking a small yet meaningful step towards addressing the daunting financial obligation and preserving residents' homes, for now.
Yet, the remnants of uncertainty still loom over Green Terrace.
Leanne Graham, a long-time resident, expressed her concerns during an earlier interview: "Imagine the families that really have nowhere to go and counted on being here for the long term. This is all we had at the moment, and now to be booted out with no options? How would you feel?"
The urgency of the situation was underscored in late April, when city officials scheduled a water shut-off that would have effectively condemned the entire complex.
PREVIOUS: Green Terrace condo residents scramble to move as HOA files for bankruptcy
Following the HOA’s bankruptcy filing, these plans were temporarily halted, but not without repercussions.
Many residents have already vacated their units.
Michelle McDonald, another resident, shared her ongoing worries about the precarious living conditions at Green Terrace.
"It's still scary because of the uncertainty," she noted, reflecting on how some of her neighbors had already moved, and left their belongings in the dumpster. "We don’t know where we’re going to be, what we’re going to do. As a matter of fact, this morning, I just called an apartment complex, and they’re already booked up."
The HOA is required to make monthly payments of approximately $24,000.
However, failing to meet these obligations could once again place residents at risk of losing water service, throwing them back into a crisis situation.
In a recent statement, the HOA expressed its commitment to resolving the matter, assuring residents that it is doing everything within its power to address the issues at hand.
The president of the HOA was contacted for further clarification regarding the payment schedule, and we are working to get a response.
The city officials have reported that they are still willing to assist families who may wish to relocate, offering financial support of up to $7,000 for those who decide to move out.
Additionally, city planners are preparing to convene with creditors to discuss strategies for addressing the substantial debt still owed by the HOA.
