Investigation: Townhouse complex fails inspection, could lose $700,000 in funding

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The U.S. Department of Housing and Urban Development failed Northcross Townhomes during an inspection following a FOX 46 Charlotte investigation.

The inspection took place on Dec. 1, 2017 and could potentially result in Northcross losing HUD funding: $698,00 annually.

Northcross is located off Griers Grove Road in North Charlotte.

“Ownership has 60 days to respond to the notification which was sent out 12/15/17 and which requires them to complete a 100 percent inspection of the property and provide HUD with the results, including completion of the repairs noted in their own inspection as well as from the REAC inspection,” HUD said to FOX 46 in a statement.

RELATED: Mom claims landlord will not fix mold problem

HUD told FOX 46 Charlotte it will provide us with a detailed copy of the inspection results after the 60-day window.

FOX 46 Charlotte’s investigation started when tenant, Jessica Smith, claimed she had a number of maintenance issues with her unit, the most concerning: Mold.

Smith’s toddler is on doctor’s orders to not be in an environment with mold due to a compromised immune system.

“I told [Northcross] they were going to fail,” Smith said.

Current and former tenants at Northcross are now coming forward to FOX 46 Charlotte.

Caleisha Steele said water leaks in her upstairs bathroom caused the kitchen ceiling and light fixture to cave in. Steele, added, management was slow to fix the problem, but said her bathroom floor still bounces from water damage and she’s afraid of what will happen next.

“I know either [the floor] is going to fall in or something is going to go wrong,” Steele said. “Because every time you take a shower and the steam hits it, it gets weaker.”

The leaks were stemming from the same location where water leaked in Smith’s kitchen. Alexis Nelms moved out of Northcross, citing in a letter to Northcross, “poor action from management.”

Nelms said she had maintenance issues and mold.

F&W Management, which runs Northcross, did not respond for comment following the failed inspection. Northcross’ on-site management did not respond, either.

Attorney, Janelle Lyons, who represents F & W Management did not respond to our request for an interview with someone from the management company.

Lyons, initially, referred to FOX 46 Charlotte’s investigation as “far short of reasonable…unethical, grossly negligent, and quite frankly shocking and unconscionable.”

Lyons has not provided comment since HUD issued Northcross a failing grade on the inspection.

FOX 46 has learned this is not the first time Northcross failed what HUD calls a "REAC inspection." Northcross received a failing grade on July 18, 2014 and corrected the issues later that year, according to a HUD report.