Miami community faces leaks, mold after botched $12M renovation: lawsuit

In Miami’s Overtown neighborhood, a small Section 8 housing community of 17 buildings stands out for its bright blue facades. Children play outside, and neighbors know one another by name.

But the low-income community has been plagued by water damage, leaks and mold that residents say stems from roofing issues following a $12 million renovation funded through a grant from the Southeast Overtown/Park West Community Redevelopment Agency (CRA), a government agency that spearheads development and redevelopment efforts in Overtown.

The residents of Town Park Plaza South, made up of 116 apartment units, have now joined together to file a lawsuit against the design-builder/general contractor, H.A. Contracting Corp., and its roofing subcontractor, A-1 Duran Roofing Corp.

The lawsuit, filed in March, alleges that the contractors’ work resulted in unsafe living conditions for residents, including protruding nails, excessive water pooling after rainfall and unsupported sections of the roof. The alleged defects caused water intrusion into common areas and residential units, resulting in ongoing damage to drywall, wood framing, electrical systems and residents’ personal property, according to the complaint. The lawsuit also alleges that many units experienced mold and mildew growth.

An attorney for H.A. told the Miami Herald in a statement that “the extent and existence of alleged roof leaks is under investigation.”

“H.A.C. takes all complaints very seriously, and HAC promptly put the licensed roofing contractor, A-1 Duran, and the manufacturer on notice, as well as the roofing company’s insurance company,” said Brian Wolf of the Smith Currie Oles law firm.

An attorney for A-1 did not respond to requests for comment from the Herald. In a court filing last month, A-1 broadly denied the allegations.

Residents of Town Park Plaza South were relocated from their homes when renovations began in 2016. They gradually returned as construction was completed, with the final group of residents moving back in during 2022, according to property manager Ken Thurston.

“The reports came in almost immediately upon their move back,” Thurston said. “There were leaks, roof leaks.”

The lawsuit alleges that H.A. Contracting Corp. breached the design-build agreement, which it entered in October 2015, and under which it was responsible for all renovations at the property, by failing to address serious issues that emerged after the work was completed. H.A. hired A-1 Duran Roofing Corp. to do all the roofing work.

“As part of the Renovations, H.A. was required, among other things, to install new roofing throughout the buildings at the Property, construct dumpster enclosures and fencing, renovate the community meeting room, and install motorized gates at the Property’s entrances,” the lawsuit states.

Ronnie MacDonald, 62, first moved into the community in 1972 as a child. After living elsewhere for several years, he returned to the community in 1997 and has remained there ever since.

When he returns home from his job as a truck driver for the city of Miami, the first thing he does is switch on his circuit breakers. Before leaving each day, he turns them off as a precaution, after months of water intrusion in his unit.

“Never had a problem until the roof,” MacDonald said.

He now keeps buckets in his bathroom to catch water that leaks through the ceiling.

Constance Caffey has lived at Town Park Plaza South for eight years and was a resident before her unit underwent renovations.

“I was excited,” said Caffey, who works as a medical-surgical attendant at Jackson Memorial Hospital. “I was happy to move back, but I wasn’t happy to go back to this.”

Just three months after moving back into her unit in 2022, the leaking began. Maintenance crews addressed the problem, and Caffey believed it had been resolved.

But in March the leaks returned — worse than before.

The water intrusion in the bedroom of her 11-year-old son, Zaccory, became so severe, she said, that mold spread throughout the room, affecting his bed, clothing, walls and ceiling. The damage forced the family to move out temporarily and stay with Caffey’s mother.

“I was depressed, crying,” Caffey said. “I had to buy all his furniture all over again, but I’m still buying that all over again for his room.”

A faulty roof

The housing community says it notified H.A. of the problems. The lawsuit claims that while the contractor initially agreed to make repairs, it eventually “abandoned any effort” to do so.

The community subsequently retained a third-party roofing contractor, Weather Guard Industries, to inspect the roofs.

“The engineers determined that the installation of this roof is completely and utterly defective,” said Kirk De Leon, the attorney representing Town Park Plaza South.

On Sept. 5, 2024, Weather Guard Industries issued an inspection report concluding that the entire roofing system was waterlogged due to poor design, improper installation, or both. The report found that excessive moisture had caused the adhesive to fail, leaving the roofing membrane no longer properly adhered, according to the lawsuit.

Per the lawsuit, the community provided the report to H.A., but the contractor did not address the findings. Instead, H.A. informed Town Park Plaza South that the roofs were covered under warranty and directed the community to contact the roofing manufacturer, despite knowing that the problems stemmed from A-1’s defective roofing work, the lawsuit alleges.

H.A. provided the community with roof warranties for each building on Oct. 24, 2024, and again directed the community to seek an inspection from the manufacturer. However, when Town Park Plaza South contacted the manufacturer, it was informed that the warranties had been voided because A-1 had allegedly not been paid for roofing materials, labor or warranty fees owed by H.A. under the agreement, according to the lawsuit.

H.A. says that A-1 has since been fully paid.

The 40-year recertification limbo

H.A. Contracting said it had “performed its obligations” under the project and that its work had passed inspection by the city of Miami. The contractors argue they cannot continue work at Town Park Plaza South until the building completes its 40-year recertification.

However, De Leon, the attorney representing the community, said the property cannot pass recertification until the roof repairs are completed.

“They need to finish the work on the property so that we can then get the 40-year signed off on by the city,” De Leon said.

On June 8, H.A. Contracting filed a motion to dismiss the lawsuit. In the filing, the company noted that on April 30, 2021, Town Park was issued a violation notice by the city of Miami for “failure to obtain the required 40-50-Year Recertification.” The motion argues that the contractors cannot proceed with additional work until the recertification process is completed.

The filing also states that “H.A. Contracting and A-1 Duran recommended a more robust roofing system for the Town Park buildings, as well as significant upgrades to the buildings. Unfortunately, Town Park and the [Southeast Overtown/Park West] CRA were unable or unwilling to accept H.A. Contracting and A-1 Duran’s recommendations and opted for the currently installed roofing system.”

De Leon disputed the claim that Town Park controlled the project, saying the Southeast Overtown/Park West CRA, the agency that funded the project, oversaw the entire process, including hiring contractors and approving renovation plans.

“Town Park did not touch $1 of this money,” De Leon said. “It always ran through the CRA.”

A representative for the CRA declined to comment, citing the pending litigation.

A community at risk?

De Leon said his greatest concern is that even if Town Park ultimately prevails in court, he’s unsure how long it will take, since litigation can take years. In the meantime, he worries about how much longer residents can safely live with a failing roof as South Florida’s rainy season — and hurricane season — gets underway.

“I am very, very worried,” said resident Jacqualyn Mercy Wells, a retired cosmetology teacher who has lived at Town Park for six years.

Water has leaked into Wells’ apartment through a bathroom vent, and at times she has had to hold a container over her head while using the bathroom to catch the dripping water.

Town Park Plaza South is a cooperative, meaning residents own shares in the property and pay monthly housing fees. Those fees are also being used to cover the cost of ongoing repairs caused by the leaks.

“It’s going to reach a point where we won’t be able to make repairs,” said Thurston, the property manager.

A hearing on the lawsuit is scheduled for Sept. 9.