Below is a chronology of certain events pertinent to the
relationship between MJ and 18 Paradise, followed by a number of questions that
come to mind.
· November 2017. 18 Paradise entered into an agreement with MJ Management to lease the golf course in exchange for a monthly lease payment of $8300 beginning January 2018.
· January 2019. Per the lease agreement monthly lease payment was increased to $8750.
· January 2020. Per the lease agreement monthly lease payment was increased to $9160.
· December 3, 2019. Without any approval or input from Homestead residents, MJ Management recorded the seventh amendment to the Declaration, allowing the Declarant to increase maintenance fees by over 150%.
· December 4, 2019. MJ Management sent a letter notifying Homestead residents of a maintenance fee increase from $36 to $93/month.
· September 15, 2021. Judge Freeman signed a Stipulation and Order stating that Homestead property owners are only required to pay $36 in monthly fees while the litigation is pending.
· May 1 and 2, 2023. MJ was served with a Notice of Default informing MJ they were behind in rent in the amount of $265,640.
· May 1 and 2, 2023. MJ was also served with a Notice of Termination of the Lease Agreement within 30 days.
· May 24, 2023. Philip Buri filed a Notice of Attorney’s Lien for unpaid fees for services by MJ Management in the amount of $55,860.29.
· June 21, 2023. Mao Chen sent a letter to Homestead homeowners notifying them that, effective, June 1, 2023, that their management agreement with MJ had been terminated. The letter also notified homeowners that “Moving forward checks for all dues shall be made payable to 18 Paradise, L.L.P. and should be mailed to PO Box 329 in Lynden.”
· June 23, 2023. 18 Paradise filed a Complaint For Unlawful Detainer against MJ Management requesting that MJ pay delinquent rent and fees in the amount of $267,420. The Complaint referenced property legally owned by Chen including both the golf course and common areas.
· June 23, 2023. Mao Chen filed a Declaration in support of Motion for Unlawful Detainer. The Declaration documented that MJ had not paid their $9160 lease payment from December of 2020 through and including April of 2023 (29 months).
· July 21, 2023. A Judgement was issued by the court ruling that MJ was guilty of unlawful detainer and required to pay outstanding rents and fees.
· September 15, 2023. Order granted stipulated motion vacating the Order of Default and Judgement against MJ Management.
QUESTIONS:
1. Assuming 640 property owners at Homestead, MJ Management could have collected close to a million dollars in maintenance fees between January 2021 and May of 2023. [640x$93x9months + 640x$36x20months]. So, if MJ didn’t pay lease payments to Chen and owe $55,860.29 in attorney’s fees to Buri, where is the money?
2. MJ’s Notice of Termination was June 1, 2023, so why is Chen only wanting MJ to pay lease payments through April, and not for May?
3. If MJ was terminated on June 1st, and Chen started collecting maintenance fees beginning in July, what happened to the maintenance fees homeowners paid in June?
4. Does 18 Paradise have an accounting of those homeowners who paid maintenance fees for the full year?
5. Does 18 Paradise have an accounting for those homeowners who haven’t paid maintenance fees?
6. In the Letter to Homestead residents, Chen says that the Declarant has “the right to recover costs for the services and maintenance of the Common Open Space” . Does 18P have an accounting of those costs so they know how much to charge?