‘Drawn-out battle’ for Charlotte tenants ends with $547K settlement for unsafe units
The news was a long time coming for Serita Russell.
A judge had approved a $547,500 settlement for former tenants of the west Charlotte apartments riddled with health and safety violations, ending a years-long saga highlighting the city’s dire need for safe, affordable housing.
Russell, a lead plaintiff of the class-action lawsuit representing former tenants of Lake Arbor Apartments, said she hadn’t fully processed the news after the court’s approval earlier this week, but her initial reaction was relief.
“I was exhausted from this long, long drawn-out battle,” she said. “Just living in Lake Arbor, period, for the three and a half years that I was living there, I am happy that it’s over. I’m glad that I’m trying to put my life back together.”
The money will be divided among 106 former tenants, up from an initial 97 identified in November, when the settlement was reached. Settlement amounts will vary based on the rent tenants paid and whether they received collections notices after code violations were identified.
Lake Arbor’s long history
The west Charlotte complex off Tuckaseegee Road was plagued by health and safety hazards, including pests, mold, and unsafe wiring. For months tenants implored public officials to intervene.
After city inspections found numerous violations, then-owners and property managers notified residents they’d all be removed. The process took months, as housing advocates warned a swift ouster would only worsen tenants’ instability and risk of homelessness.
Russell said she found issues with her townhouse shortly after moving in, and subsequently reported faulty wiring, plumbing issues and inoperable windows and doors.
Tenants who previously spoke to the Observer, many of them elderly, disabled or low-income, said they struggled to find other housing but felt powerless to speak up to management.
The North Carolina Justice Center, Charlotte Center for Legal Advocacy and Robinson Bradshaw represented tenants in the lawsuit.
Sharon Dove, an attorney with Charlotte Center for Legal Advocacy, praised the settlement for helping tenants get back on their feet.
The settlement “sent a strong message to landlords in the Charlotte region that it’s not acceptable to ignore requests for repair, and certainly not acceptable to collect rent while you’re ignoring serious repair requests,” she said.
Erik Rosenwood, an attorney for the then-property owners Lake Arbor Dean TIC LLC and Lake Arbor 80M TIC LLC, previously told the Observer that while his clients maintained they were not liable in the case, they settled to avoid the time and cost of a trial.
“At the end of the day I think it’s fair to say that the former owner acknowledges that we didn’t manage this property up to our standards and felt it was appropriate to come to a settlement with the tenants whose units were not properly maintained, and the class action settlement was the most efficient way to do that,” Rosenwood said in an email.
“We’re glad we were able to reach an agreement acceptable to the tenants and the court, and are happy that the new owners have been able to complete the majority of their renovations and reopen to the public.”
New York-based real estate investment company URS Capital Partners bought the property in April 2020 for $14 million, according to Mecklenburg County property records. The company has renovated and renamed the complex Nova Ridge Apartments and Townhomes, where a one-bedroom apartment is listed for around $900.
Russell said she is pleased that the lawsuit is resolved and tenants have some sense of closure, but said there is more work to be done in a city with a huge deficit of affordable housing.
Russell, who became involved with advocacy group Action NC and the affiliated Tenant Organizing Resource Center during her struggle with Lake Arbor, said she hopes the experience can set an example.
“No matter what’s going on in our community, we can still fight because Lake Arbor residents did it,” she said. “We can do it. Do not stop. Do not stop.”
Tenant resources:
Charlotte Center for Legal Advocacy: 704-376-1600
Legal Aid of North Carolina: 704-594-8662
Tenant Organizing Resource Center: 980-443-3715
This story was originally published March 19, 2021 at 11:17 AM.
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