Luxury condo ‘a bully building,’ unit owners say

The housing slump and weak economy are contributing to a host of problems, including condo owner frustration.

Some buyers at Aqua, a luxury tower in Midtown, complain that more than a year after buying their units they remain powerless in how the building is run.

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KEVIN DUFFY/kduffy@ajc.com

Some buyers at Aqua in Midtown complain they have no voice in running the place. The developer says more units must be sold.

Residents won’t gain control of Aqua’s homeowner association until Tivoli Properties, the developer, sells 80 percent of the units. A condo glut and consumer lack of confidence have slowed sales.

Until that threshold is reached, Tivoli and a company it hired, Fifth Street Management, are in charge.

“When we bought into this we assumed the homeowners would take over pretty quickly,” said Larry Smith, who with his wife bought a two-bedroom unit in September after living in a single-family home in Morningside.

“I feel it’s a bully building,” added Judy Toussel, who lives in a three-bedroom unit. “They refuse any input from a homeowner. A homeowner is nonexistent.”

Smith, Toussel and others are irked about the quality of services at Aqua and a proposed budget increase of 11.8 to 15.7 percent, depending on which figures are used. The new budget, which is to be voted on Monday, has changed more than once.

“We’re not getting the services we pay for here,” Smith said.

Scott Leventhal, Tivoli’s CEO and president, said that because of the economy, homeowners are particularly touchy about higher costs.

“Times are tough. We are sensitive to the fact that it’s a tough economy,” Leventhal said. “The folks that you are dealing with are hurt.”

But, he added, “you’re dealing with a very small group … who don’t like what the majority wants. There are 50 other folks who you didn’t meet with.” Residents for the most part are demanding higher levels of service, so costs are up, Leventhal said.

Disgruntled homeowners say their recommendations for trimming the budget are ignored. They suggest reducing valet service, eliminating concierge and security overlap and allowing homeowners to do some landscaping.

“We want to help Tivoli sell, as we all have a vested interest in Aqua, but don’t treat us like dirt,” said Ray Hom, who bought his unit in August.

The homeowners made their feelings known after reading an article about a new Tivoli project in Midtown with a Mandarin Oriental Hotel and 71 luxury condos.

“I’d like to see him finish one thing and do it well before he moves on to the next thing,” Toussel said.

Richard Cohen, another Aqua resident, defended Tivoli and Fifth Street Management, saying the first-year budget was an estimate and that the proposed budget includes a new reserve fund.

His home would see an $87 bump in the monthly fee and “this to me is not an enormous increase,” he said. Fees vary by condo size.

Cohen also said he doesn’t want to see services cut back.

“If it didn’t have valet, I wouldn’t have bought in it. It’s that simple,” he said. “I think the management company is doing the best job it can under the circumstances.”

Leventhal said if most residents don’t like the new budget they can vote it down Monday.

“This is a democracy, not a dictatorship,” he said, adding that he was puzzled by the grumbling. “It’s an odd thing for me, this one.”