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San Jose high-rise towers face foreclosure

There are some new problems involving a property company that’s already linked to several multi-million-dollar business scandals in the Bay Area.

Z&L Properties now appears poised to default on a huge luxury condo project in downtown San Jose called 188 West Saint James Towers. The luxury condo project was once touted as an example of the city’s prospering downtown.

According to the Homeowners Association Board, the Foster City-based developer is facing foreclosure for failing to pay years of monthly homeowners dues of $600 to $800 on more than 200 empty unsold units.

San Jose resident Jennifer said to save their homes, hey held a special election to remove the two Z&L board members who were refusing to pay up.

“A building if this size takes money to run, right? Even if we’re just talking about electricity and water,” she said. “So, my concerns are that we’re not going to be able to make those payments with the money that is coming in from the residents that do live here.”

Z&L properties isn’t new to controversy or scandal. The company is also responsible for numerous other failed south bay projects, including a proposal to rehabbed the blighted First Church of Christ Scientist and several other housing development proposals.

In a case that drew national attention, Z&L was also part of the corruption scandal that brought down former San Francisco Public Works Director Mohammed Nuru in 2020.

In that case, Z&L’s founder, Zhang Li was arrested for bribery.

San Jose Mayor Matt Mahan told NBC Bay Area Wednesday that the bottom line is this new scandal means ongoing legal problems and no new, much-needed housing.

“Whether or not they going to foreclosure, the outcome that we want for our residents is for someone who owns that building to complete the project and open it up,” he said.

Z&L is reportedly trying to do that, but some tower condo owners say they can’t afford to just wait.

NBC Bay Area could not reach Z&L for comment. In fact, their phones and email access have been disconnected. At this point, residents may not get their answers except in a courtroom.


Source: NBC Bay Area

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