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Portsmouth condo assoc. didn't use HOA dues to pay nearly $1M in water bills

"Somebody got that money... it ain't like the people aren't out here paying," said a resident. Some are worried their water will be cut off, despite paying bills.

PORTSMOUTH, Va. — For now, the water will not be cut off to some 240 condo units at Charlestowne Condominiums on Greenwood Drive in Portsmouth. 

The city confirms the complex has a $969,222.14 delinquent water bill. Money to pay the bill is supposed to come from the monthly homeowners' fees paid by each unit's owner. 

"Somebody got that money, somebody got that money — it ain't like the people aren't out here paying. Somebody's got that money," said one resident, who didn't want to be identified.

The problem isn't new.  In 2014, 13News Now reported that 200 Charlestowne residents could be forced from their homes over a delinquent $34,000 bill. It has only grown worse over the years. 

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"We pay our rent, we pay our mortgage  — a part of that is the water. So we pay our water bill through those terms," said another resident.

The complex is serviced by six master water meters. Before Portsmouth Deputy City Manager Vernell Woods was fired last month, he says he and the utilities director were working on plans to install individual meters at each home so the homeowners would be billed directly for their water usage.  

"We were in the process. They had the survey," Woods said. 

"It would work out to a win-win situation for us and the city because we would pay you and you wouldn't continue to excuse of have this exorbitant amount that's not being paid." said another resident who also does not want to be identified. 

Charlestowne has a homeowners' association board that has employed the Chesapeake-based Association Management Advisors Group. Several management companies have worked with the complex over the years, and their relationship with the residents has been litigious. Court records show almost an endless list of lawsuits filed by Charlestowne against residents  —and residents against Charlestowne.

Association Management Advisors Group (AMAG) issued this statement: We will say, we came on as management in August 2023. As we all see dramatic positive improvement in Charlestowne Condominium. At this time, and since we took over the ASSOCITATION(sic) Management, (this is not property management), the new Board put a financial plan in place per the Governing documents, and all Billings in the community are being paid, and on time. The community has seen nothing but vast improvements over the last nine months. All owners are privy and have access to their Community’s financial statements monthly in their private online account. All things are very transparent.

AMAG concedes there have been "past failures" but blames them on the owners' "lack of prior fiduciary responsibilities."

Meanwhile, some owners who say they pay the monthly fees are angry the bill hasn't been paid and worry the water could be cut off. 

In a statement, a city spokesperson says the water will not be cut off "at this time."  The only way the city explains what has taken so long to collect on a bill that's been delinquent for years is to say the city sent monthly bills with the "expected payment."

Virginia law explains why it would be tough to turn water off to the complex. According to the property maintenance code, a place without water is deemed unsafe.  Required plumbing and sanitary facilities must be operable. If water is turned off, it could lead to the condemnation of the entire complex displacing hundreds of residents.

Work continues to install individual meters. The city anticipates it will take 18 months to finish the design and construction. The estimated cost is $2.5 million.

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