THERE is a looming threat to apartment owners in the upscale Kingston Mall Condominiums, Proprietors Strata Plan (PSP) 79, also known as Ocean Towers, at 8 Ocean Boulevard on downtown Kingston’s coastline.

They have been warned by letter from their strata corporation, the governing authority on the bylaws for the property, that they could lose their properties if maintenance fees, which the strata said are owed, are not paid up soon.

The overall sums owed to the PSP #79 for maintenance fees exceed $26 million, with the largest delinquent being the Urban Development Corporation (UDC), which is indebted to the tune of more than $17 million.

In written communication issued on April 20, posted on the notice board of the building’s third floor lobby and signed by a D Carter, whose given designation was accountant, the property owners were asked to pay up within 30 days of the notice. A list of proprietors deemed by the strata as being delinquent was also disclosed to residents on the same day.

It said that relevant proprietors were in arrears of 60 days or more, and stated that if the money was not paid up within the specified period an application would be made to the Commission of Strata Corporations for permission to sell the apartments by private auction or otherwise.

Apartments at the location are all high-value structures worth several million dollars and accommodate many of Jamaica’s prominent citizens, as well as foreigners. The property’s picturesque look, tight security, and privacy make it ideally suited to provide comfort to those who live there, some have argued.

Real estate prices are also said to be rising fast in the immediate vicinity as a result of the redevelopment of the Kingston’s waterfront, including the latest addition of the Rok Hotel, formerly Oceana Hotel.

The letter signed by Carter reads:

“Good afternoon,

“Please see attached proprietors with maintenance arrears of 60 days and over as at April 20, 2023.

“If the outstanding contributions are not paid within 30 days or suitable arrangements made to pay these sums, the strata corporation will apply to the Commission of Strata Corporations for a certificate of power of sale to sell strata lot (number) by public auction or by private treaty in accordance with Section 5C (4) of the Registration (Strata Titles) Act.”

The list has some prominent Jamaican citizens, among them lawyers, pastors, business people, and many others serving in high-profile positions in the society.

They, apart from the UDC, are said to owe from a low of just over $60,000 to a high of $3.5 million.

Veteran attorney-at-law Frank Phipps, KC, who is a resident of the condominium, speaking with the Jamaica Observer on Saturday in response to a query as to whether or not he was aware of allegations that his name may be on the list, lashed the strata’s executive committee and the UDC for what is now happening.

It is understood that Phipps usually pays well in advance of the due date.

“They haven’t got the strata plan and there isn’t any management team. Of a debt that is listed as $26 million owed by myself and others, UDC owes $17 million, which is two-thirds of the debt,” Phipps said in a telephone interview.

“They called a meeting to increase subscription, where I was not invited. I don’t know about the other people listed [if they were invited] to participate in any decision to take any action.

“I have actually drafted a letter to the commission now, asking them to revoke what was done and to discuss the question of compensation owed to those who have been affected.

“But I have not been invited to any meeting for all these drastic actions, and the question of my involvement is where my regular subscription was paid through the bank where PSP has their account, but unfortunately attempts to correct it from March 8 have not been successful. PSP knows about it; I can show you the correspondence. Requests in writing for the bank and PSP to collect that from the 8th of March have not yet been implemented, so the bank itself may be exposed to be in collaboration,” said Phipps, regarded as one of Jamaica’s foremost attorneys-at-law.

Listed as owing over $230,000 is a deceased former entertainer, while an individual who bears the name of one of Jamaica’s accomplished reggae stars was also said to be delinquent. It could not be determined if it was the entertainer in question, as his stage name was not stated on the list.

The Sunday Observer could not reach accountant Carter for a comment.

The UDC apartments with outstanding maintenance balances are 1-14, 32, 33, 45, 46, and 58, amounting to $17,710,400.60. The corporation has four seats on the executive committee, which, ironically, was said to have voted recently on increasing the maintenance fee at an emergency meeting of the same committee held last February, even though the organisation was the main delinquent, and there exists a challenge to collect from all property owners within a specified time.

The decision was taken at the February executive committee meeting to increase maintenance fees by 20 per cent, effective April 1, 2023.

The monthly maintenance fee could not be determined by the Sunday Observer, nor was the age of delinquent accounts stated.

“Isn’t it a conflict of interest for the strata to be trying to enforce collections when the UDC, which has majority seats on the executive, owes more than three quarters of what is outstanding?” asked another lawyer who requested anonymity.

“The UDC is delinquent, so it is only fair that it should not hold any seat on the executive, and four at that,” the individual said.

“How then can the executive committee force property owners to pay up maintenance fees when the UDC, with so many votes on the committee, is so delinquent? Will those who represent the UDC on the executive committee agree to sell the corporation’s properties if that threat is carried out?”

Attempts to get a comment from UDC chairman, attorney-at-law Ransford Braham failed.

According to the strata’s bylaws, a copy of which has been obtained by the Sunday Observer, delinquent owners are not allowed to serve or vote on the executive committee if they are in arrears of their fees, and voting rights will be suspended. Voting rights depend upon units held, and are allotted according to percentage ownership. UDC controls 80 per cent of voting rights, hence its dominant presence on the executive committee.

There is also another contention, the Sunday Observer understands, regarding parking space for occupants, a section of which has been reclaimed by the UDC and now attracts a charge. Originally, parking space was allotted to the size of the individual property. For example, people living in a three-bedroom apartment would be allocated three parking spaces, two-bedroom apartments are allocated two parking spaces, while there is one space for a one-bedroom, and studio apartment.

It is understood that there is a plan by proprietors to move into action within the next few days by petitioning Member of Parliament for the area (Kingston Western) Desmond McKenzie, as well as pursuing the matter along legal lines.