For families at the Green Terrace Condominiums on Georgia Avenue, just south of Belvedere Road, the notice hit like a gut punch. Tenants say they only recently learned that the West Palm Beach complex could be sold at auction because its homeowners association owes the city more than $1.4 million in unpaid water and sewer bills. A growing number of units now sit empty or padlocked, and some residents have already started boxing up their lives with no clear idea where they will land next.
According to CBS12, city officials say the Green Terrace homeowners association allowed the utility debt to pile up over several years. The city now plans to move ahead with auctioning the property, with a portion of the sale proceeds slated to cover the overdue water and sewer charges. Tenants told CBS12 they received no formal notice before the city took action, leaving many scrambling to find new housing on short notice. CBS12 also reported that the property manager and the association did not respond to repeated requests for comment.
Bankruptcy, liens and earlier warnings
Local station WFLX reported that the association filed for Chapter 11 bankruptcy in April 2025, a move that temporarily stopped planned utility shutoffs. WFLX also noted that the complex is carrying roughly $2.5 million in code-enforcement liens on top of the unpaid water and wastewater charges. City officials told the station they would need to see proof of regular payments or other concrete assurances before allowing services to remain on without interruption. WFLX further reported that the city had opened limited relocation assistance and had already processed applications from residents trying to move out.
Bankruptcy docket shows the timeline
Federal court records show the Green Terrace Condominium Association filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Florida on April 25, 2025, under case number 25-14568, according to Bankruptcy Observer. Docket entries from 2025 and 2026 include scheduling notices, motions and other routine filings typical of a Chapter 11 case. The drawn-out process has left residents stuck in limbo, unsure whether their building will be saved, sold or emptied out.
What comes next for residents
The city told CBS12 that water will not be shut off "at this time," which offers some short-term relief but no real roadmap. Officials did not give a clear timeline for a sale or for any evictions, leaving many tenants unsure how long they can stay put. If the city goes ahead with an auction, public records and city officials say that money from the sale would be applied toward the outstanding utility balance. In the meantime, residents say they are drawing up backup plans, checking listings and trying to line up new places to live in a tight market.
Legal note
Under federal bankruptcy law, when a petition is filed an "automatic stay" generally halts most collection efforts, including many foreclosures and some utility cutoffs, from the moment the case is opened. Creditors can ask the court to lift that stay in certain situations, according to U.S. Courts. The stay can buy time for a reorganization plan or a potential sale, but it does not erase the association's debts and it does not guarantee that residents will ultimately be allowed to remain if a sale is approved.
Where tenants can turn
WFLX reported that the city was offering qualifying tenants up to $7,000 in relocation assistance and had already processed several applications. Palm Beach County's emergency rental and relocation portal provides program details and online application links for residents who qualify and need help. For more information, visit Palm Beach County.
