LAS VEGAS (CBS) – Residents of the Paradise Spa development are fearing the worst, as their HOA is announcing a community shutdown. What does that mean?
As we first reported two months ago, the complex on South Las Vegas Boulevard and Richmar has been the subject of FBI raids targeting the California owner of many of the units. FBI agents took boxes of evidence after questions arose about nearly $2 million in missing HOA dues and insurance money. The HOA says that missing money may force them to close at the end of the month.
In the last 24 hours, residents have heard that their gas will be shut off, the community will experience a wholesale eviction, and later found out that the property management is willing to take responsibility for keeping the community open.
Some seventy-five percent of the 384 units in the complex are owned by California real estate investor Aaron Yashouafar. Frank Colletto says his management company is paying the gas bill and more.
Colletto tells 8 News Now that he represents Milbank Real Estate, but is unsure if that company is connected to Yashouafar.
State officials list Yashouafar as the CEO of Milbank.
Interestingly enough, if developer Yashouafar gains 80 percent control of the Paradise Spa, he can dissolve the HOA. Appraisers saying they work for Yashouafar say he had plans to buy more units in the complex. Real estate developers say the property, which does front to Las Vegas Blvd., is worth alot more to developers than it is as a current neighborhood of flats.
A complaint from the State Commission for Common Interest Communities may force the issue to a head. On July 6th, they will hold a hearing to determine the fate of Paradise Spa.