Residents of the downtown Ely Walker Building in St. Louis are alleging that the landlords in control of the building have allowed insurance coverage to lapse on the troubled 174-unit structure. In an ongoing lawsuit against the building’s condo board and the majority owner, the condo owners are seeking a court order to require the board to obtain insurance for the building, as required by state law.

The condo board’s failure to maintain insurance coverage is seen as a serious threat to the welfare of the plaintiffs. One condo owner and plaintiff in the lawsuit, Kristin Denbow, discovered that the policy had lapsed on July 12 after contacting the board’s former insurance agency.

This accusation is not the first allegation of mismanagement against the landlords, Vic Alston and Sid Chakraverty. Their companies, Asprient Properties, Lux Living, and STL CityWide, have faced criticism from tenants in their properties throughout the city. On Tuesday, a lawyer for the brothers stated that the condo association had purchased a new insurance policy the previous week. However, he claimed that it is currently difficult and expensive to obtain insurance for condominium associations.

Tenants and condo owners at the Ely Walker Building have raised concerns about mismanagement and cost-cutting since the majority of the units were purchased by an Alston company, giving the brothers control of the condo board. The building, which was once sold for around $300,000 per unit, has seen a decline in value due to the alleged mismanagement.

In addition to the insurance coverage lapse, residents have reported issues such as broken fire alarms, leaky pipes, and unauthorized short-term rentals. The city has deemed the building a nuisance and threatened legal action to improve security, but conditions have not improved.

The insurance coverage lapse not only affects the safety and well-being of the residents but also poses challenges for selling condo units. Prospective buyers require proof of insurance on the building, and without it, sales are hindered.

In an attempt to address these issues, Alston and Chakraverty recently put their downtown holdings, including Ely Walker, on the market.

Sources:

– Jacob Barker. (2022, September 14). Residents accuse STL landlords of allowing insurance to lapse on Ely Walker building. St. Louis Post-Dispatch.
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