MIAMI – In an ongoing Local 10 News "Call Christina" investigation, new details are revealed in receiver Linda Leali's first report since being appointed receiver in June.
The nine apartments, totaling 147 units, located in Liberty City and Overtown are all owned by companies state records show are run by Denise Vaknin of New Jersey.
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One of the properties is currently vacant.
The apartments are plagued with problems that include mold, sewage leaks, electricity issues and live vermin. Some of the buildings lack 40/50 year certification "required by Miami-Dade County and the Florida Building Code. Others lack the required Business Tax Receipt or Certificate of Use. To the extent that repairs have been completed, certain of them have been completed without validly obtained permits," stated the receiver in her report.
RENT STRIKE: Evictions possible
The apartment buildings have a large number of "non-paying tenants," Leali wrote in her report. Last month, about 40 percent of the tenants didn't pay rent.
She added that residents of 6040 NW 12th Avenue have been on a "nearly complete rent strike as of the commencement of this receivership."
Part of Leali's five-point approach moving forward includes pursuing "current and past tenants for various rent arrearages," and eviction "proceedings against tenants in default if necessary and appropriate."
"After speaking with the receiver myself, I am aware of the financial situation the city finds itself in regarding funding the repairs on the building," former Miami Workers Center organizer Adrian Alberto Madriz told Local 10 News Investigative Reporter Christina Vazquez. "I firmly believe the receiver's intentions are with the residents of the Vaknin-owned properties and am confident that all rent money paid to her and her chosen management company will be used to administer repairs as quickly as possible. I encourage all of the residents to pay their rent for July if they have not already, and continue paying, so as to avoid giving justification for eviction. I will continue speaking with the receiver and the city to make sure all options are exhausted in the process to relieve the residents of their inhumane conditions."
Former state and federal prosecutor David Weinstein said, "Despite efforts by the city of Miami and a receiver appointed by the court to protect them, the failure of some tenants to continue to pay their rent may result in their eviction. Under the law in Florida, failure of a landlord to comply with the requirements of applicable building, housing and health codes doesn't automatically allow a tenant to withhold rent. If a violation exists, it becomes the tenant's duty to make the landlord aware of the problem, preferably in writing. Once the landlord is on notice, they are required to fix the problem. If the problem is not fixed, then the tenant may seek remedies available to them under the terms of their lease.
"In some leases, after notice to the landlord and a failure to make repairs, a tenant can withhold a portion of the rent equal to the loss in rental value caused by the problem. If an eviction proceeding is initiated, many leases contain a clause that allows a tenant to defend themselves in an eviction proceeding by asserting as a defense the landlord's breach of the warranty of habitability. If the leases for these tenants contain such a clause, then that is how they can defend themselves in an eviction proceeding."
THE ACTION PLAN:
Leali is also looking to work on responding to the "tenants needs" for "requested repairs to the extent that funds are available," seeking third-party financing and general contractor bids to rectify the outstanding violations and restore the buildings. She is also working to secure insurance.
"As of the date hereof the defendants have not turned over any funds to the receiver. The only funds in the operating account are funds from rents collected and an emergency advance by the Receiver to assist in paying payroll," she stated.
The report also indicates that the "rents being generated by the Properties currently are wholly insufficient as a sole source of funds to make these repairs and renovations in any rapid fashion. The Receiver is preparing a brochure for seeking funding from outside sources including banks and alternative funding sources."
In its motion to vacate the final judgment, the attorney representing the defendant corporations claimed the city was "stonewalling" efforts by the general contractor they hired, GloGoz Construction, to make the necessary repairs.
In her report Leali states, "Upon information and belief at the time of the commencement of the receivership, GloGoz Construction had ceased all work due to non-payment of amounts owed for services and goods provided in the approximate amount of $45,142."
NEW PROPERTY MANAGEMENT COMPANY:
About three months ago, the companies hired the property management company "Done Right Management, LLC." In her report, Leali explained it is the same company that worked on "properties owned by Denise Vaknin in Texas."
READ: VAKNIN-RUN PROPERTIES: A NATIONWIDE PROBLEM
It turns out that Done Right doesn't have a real estate license in Florida, which Leali stated is necessary when it comes to renting and leasing. Receiving a commission on rentals, she went on to say, "requires a real estate broker license. Done Right's agreement with the Defendants was that they were paid a ten percent commission based upon rents collected."
The receiver has now entered into a management agreement with Capital Rental Agency.
JUMPING THE WIRES:
Leali states it is believed some tenants at 6040 NW 12th Avenue have been "'jumping the wires' or otherwise diverting electricity."
There is evidence someone has been tampering with the meter room. Safety issues involving electricity are ongoing. The receiver is working with Florida Power & Light to track down legal and illegal accounts which could help Capital Rental Agency identify "which tenants are breaking the locks to the meter room."
Leali is also looking into allegations that "prior management or employees of the Properties were selling electricity to tenants by illegally jumping the wires in exchange for a fee."
'SLUMLORD MILLIONAIRE' LAWSUIT:
Three tenants had filed a separate suit against Denise Vaknin, holding her personally responsible for the deplorable and life-threatening conditions of their units.
In her report Leali stated, "While the receiver is not party to the lawsuit, the resolution of such lawsuit may impact the properties. Receiver is presently weighing the need to intervene in this case."
READ: How tenants are trying to collect from Vaknin's assets by holding her legally responsible
BACKGROUND:
Following years of ignored fines, violations, and repairs, the city of Miami determined the apartment buildings to be in severe disrepair and filed suit against the companies in order to recover more than $2.4 million in unpaid fines.
After the property owners failed to respond to the suit, the city moved for a default in February. In June a Miami-Dade judge granted the city's Motion of Default Final Judgment and Motion for Receivership.
READ: Defendant corporations file a motion to vacate final judgment
As Local 10 News reported earlier, after the suit was filed, Denise Vaknin transferred the properties owned by Miami Beverly LLC in a series of quick claim deeds.
The addresses 1231 NW 61st Street, 6040 NW 12th Avenue and 1250 NW 62nd Street are now owned by Liberty Apartments, LCC, which the receiver explained "is wholly-owned by Denise Vaknin."
READ: David Weinstein opines on why she may have transferred the properties.
READ: "Left to Rot" Call Christina investigation:
PART 1: Miami residents living 'like we are dogs' say landlord doing nothing to help
PART 2: Landlords of Miami residents living in 'slums' deny owning properties
PART 3: Law seems to protect landlords of Miami residents living in 'slum conditions'
PART 4: Tenants of dilapidated apartment file lawsuit against 'slumlord millionaire'
PART 5: Officials: Apartments in deplorable conditions a "city-wide" problem
PART 6: City officials move closer to improving Liberty City tenants quality of life
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