SAN JOSE — The owner of a double-tower housing complex in downtown San Jose has won a court order to temporarily halt a foreclosure proceeding to seize control of several condos in the high-rises.

China-based Z&L Properties faces a foreclosure attempt due to delinquencies that have arisen from unpaid dues to the homeowners association for unsold condos in the western tower, county real estate records show.

SAN JOSE, CALIFORNIA - MARCH 24: 188 West St. James residential towers near San Pedro Square in downtown San Jose, Calif., on Tuesday, March 24, 2020. (Nhat V. Meyer/Bay Area News Group)
Housing towers at 188 West St. James Street in downtown San Jose, 2020. (Nhat V. Meyer/Bay Area News Group)

Once a condo is sold, the new owners are responsible for paying the dues on those purchased units. The real estate developer has managed to sell scores of condos in the western tower, county documents show.

Z&L, however, is responsible for paying the dues on condos that have been completed but not yet sold.

Faced with the prospect of a foreclosure proceeding scheduled for this month, Z&L Properties filed a lawsuit in March against two homeowners association members.

The Z&L Properties lawsuit claimed, in part, that the foreclosure was being undertaken improperly and that some association rules were breached.

On April 2, a temporary restraining order was granted by Santa Clara County Superior Court Judge Helen Williams that halts the foreclosure proceeding until the court can further review and assess the foreclosure efforts and the Z&L lawsuit.

The county judge’s order represents a win for Z&L Properties, at least for now. The judge ordered the two association members named in the lawsuit to appear in court in early May for a hearing on the situation.

Z&L Properties has proposed several projects in downtown San Jose but has yet to build any of them, other than the two-tower complex on West St. James.

Among the downtown San Jose project sites that Z&L Properties owns:

— A pair of housing high-rises and the revamp and rescue of a historic church at 252 N. First St. Neither tower has been built and Z&L has performed no renovation work on the church.

— A project of two housing towers that would replace a former Greyhound terminal at 70 S. Almaden Ave. This project has been delayed and is up for sale.

Z&L Properties has also put up for sale the two towers at 188 West St. James.

The development firm has managed to sell two properties, both in San Jose.

In 2021, Z&L sold a vacant downtown San Jose parcel on Terraine Street for $11.4 million.

In January 2024, Z&L sold the 3,654-acre Richmond Ranch through a $16 million deal whereby the Santa Clara County Parks and Recreation Department and the Santa Clara Valley Habitat Agency would eventually own the sprawling ranchland along San Felipe Road.