The Marylander Condominiums, whose residents say homeless people vandalized their boiler 11 months ago, moved closer to receivership on Thursday after their attorneys failed to appear in state court.
Prince George’s County is asking the Maryland circuit court to appoint a third party to manage operations, complete repairs and evacuate remaining residents from the cash-strapped property.
Roughly half of the complex’s 200 units have been without heat since the day before Thanksgiving.
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Attorneys for the condo owners association filed motions to dismiss the county’s lawsuit and block the receivership plan. They accused the county of trying to seize the Riggs Road property for redevelopment due to its location near a Purple Line station opening next year.
Judge Ada Clark-Edwards rejected both motions in a brief hearing on Thursday.
“The defendant has a burden,” Judge Clark-Edwards said. “They’re not here.”
A newly elected condo board named Walton Law Group as the property’s legal representation last month. That prompted Judge Clark-Edwards to delay the receivership lawsuit on Sept. 22, granting attorney Calvin Osborne time to familiarize himself with the case.
Mr. Osborne filed a motion on Monday to withdraw from the case. He declined to say why when reached by telephone.
County attorney D. Michael Lyles argued in court that Mr. Osborne had a legal obligation to attend since his motion to withdraw is pending. He also said discussions to settle the receivership case out of court broke down.
“They are mistaken that the county is trying to take the property,” Mr. Lyles said.
Homeowners of 58 of 108 affected units refused to comply with an “unfit for human habitation” notice that county inspectors posted on Dec. 10, directing them to “vacate immediately.”
County inspectors asked property managers to bury high-voltage wires contractors erected to power space heaters after the boiler was damaged, and said there was no evidence homeless people broke the boiler. Their lawsuit accuses property manager Quasar of delaying repairs.
Brian Casey, president of the Casey Group real estate firm, is one of three possible receivers the county has named in court filings. He estimates that the Marylander is likely to go under unless county, state and federal agencies finance roughly $10 million in repairs.
It remains unclear whether the county will provide financing or allow the property to fall into liquidation.
“The Prince George’s County government looks forward to working closely with a new management company and most importantly with residents,” Brian Fischer, chief communications officer for County Executive Aisha Braveboy, said Thursday. “We will explore and evaluate all options.”
Quasar CEO Kenneth Brown attended Thursday’s hearing. He said the condos have been unable to afford repairs ever since the county’s notice to vacate led a bank to deny financing.
“At the end of the day, these poor people will most likely lose their homes,” Mr. Brown said afterwards. “Nobody is going to give them that kind of money.”
Charles Walton, head of Walton Law Group, notified Quasar of its termination “for cause based on negligent conduct” in a recent letter.
Silver Spring-based Ruddy Management Co. is scheduled to take over on Nov. 1.
Maryland District Court Judge Bryon Bereano, who ordered the property evacuated, confirmed at a June 28 hearing that the condos had no money.
The circuit court has scheduled a receivership trial for Nov. 10. A hearing is scheduled for Tuesday in Greenbelt on a separate federal lawsuit the previous condo board filed to block the county from forcibly removing residents who refuse to evacuate.
It remains unclear what will happen if no attorneys show up for the condo board.
No board members attended Thursday’s hearing, and none responded to emails and phone calls seeking comment.
Longtime resident Bev Habada, a former member of the condo owners’ board who was voted out last month, expressed surprise and confusion that no attorneys showed up Thursday.
“They wanted to take this problem on and they are now the board, so it’s curious to me that they’re not attending hearings and their attorney has withdrawn,” Ms. Habada said. “I think the county could help restore the heat.”
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