Homeowners at the Marylander Condominiums, who said homeless people vandalized their boiler 11 months ago, have fired their property managers.
Prince George’s County is preparing to appoint a receiver to manage the cash-strapped property on Riggs Road, which requires millions of dollars in funding to prevent liquidation.
Charles Walton, a Fort Washington attorney whose firm represents the property in court, notified Quasar Real Estate CEO Kenneth Brown of his termination “for cause based on negligent conduct” in a letter dated Sept. 21.
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Effective immediately, the dismissal requires Quasar and former condo association board members to turn over all property records within 30 days, according to a copy of the letter The Washington Times obtained over the weekend.
“Any intentional interference, delay, concealment, unauthorized transaction, or effort to take advantage of the transition period will be regarded as a serious matter and may result in the Board pursuing all available remedies,” Mr. Walton wrote in the letter.
Mr. Brown said he received the letter by mail on Thursday and was awaiting further instructions.
“Quasar has provided all documentation that is necessary for the transition of management as well as documentation that the Board has requested,” Mr. Brown said. “Updated information will be provided at the conclusion of Quasar’s services.”
Roughly half of the complex’s 200 units lost heat the day before Thanksgiving. 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.”
According to a court filing, the notice caused a bank to withdraw a loan for repairs, and the property has been unable to secure financing ever since.
County officials have asked property managers to bury high-voltage wires that contractors erected to power space heaters after the incident. They said there was no evidence members of the homeless camp vandalized the heat, and accused Quasar in the receivership lawsuit of stalling repairs.
Receivership would empower a court-appointed third party to oversee operations, pay bills and finish repairs while residents are evacuated.
Brian Fischer, chief communications officer for County Executive Aisha Braveboy, welcomed Quasar’s dismissal in a statement Monday.
“The Prince George’s County Government looks forward to partnering with a management company that will provide needed services, and an environmentally safe and secure facility for our county residents,” Mr. Fischer said.
Heidy Perez, the condo board’s president, confirmed that Ruddy Management Co. will take over operations. The Silver Spring company manages more than 5,500 units across more than 140 residential communities in the mid-Atlantic region.
Peter Ruddy, the company’s chief executive officer, said the company will assume management on Nov. 1. He touted its experience in receivership cases and past success in turning around difficult properties.
“We’re going to do the best we can, but we can’t make money appear,” Mr. Ruddy said. “Our message to the board has been that we are not magicians and cannot turn the community around without adequate resources.”
A newly elected condo board named Walton Law Group as the property’s legal representation last month. That led a Maryland circuit court judge to delay the receivership lawsuit on Sept. 22, granting attorney Calvin Osborne time to familiarize himself with the case.
Brian Casey, president of the Casey Group real estate firm, is one of three possible receivers the county has named in court filings. He told The Times last month that the Marylander is likely to go under unless county and federal agencies step up to finance roughly $10 million in repairs.
Another receivership hearing is scheduled for Thursday, with a trial to follow on Nov. 10.
Bev Habada, a former member of the condo owners’ board, also received a letter from Walton Law last week, directing her to turn over all property records in her possession.
Ms. Habada, a former Glenarden city manager, is one of several longtime condo owners hoping the property will be repaired. But she said time is running out.
“We’re approaching cold weather, so we only have about nine weeks to do all of this work,” Ms. Habada said in a phone call. “The county has laws that allow it to remediate situations, but this is a big one, and I don’t think we’re high on the priority list.”
Maryland District Court Judge Bryon Bereano, who ordered the property evacuated, confirmed at a June 28 hearing that the condos had no money for repairs.
As of Monday, the county had made no effort to force residents out of unheated units.
“People don’t think this is going to happen because they think the county will go up to the brink and back down,” Ms. Habada added. “I’m not so sure.”
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