KM-THE Realty 6, owners of the 124-unit low-income Crestwood Apartments in Kansas City KS has had a foreclosure filed against them by Fannie Mae, the Federal organization that backed their loan.

The foreclosure was not for non-payment, it was for failing to keep the properties up to standards. According to a KMBC report, in a lawsuit filed in Wyandotte County District Court, the filing was due to the company’s failure to “fully repair” about $190,000 worth of items at Crestwood Apartments outlined in a January inspection. The repairs reportedly rose to the level of life-safety violations.

The lack of action on the repairs, the foreclosure lawsuit says, put the company in default of a $2.9 million loan backed by Fannie Mae. Fannie Mae is demanding roughly $2.5 million of the loan after credits applied, plus interest, according to court documents.

Apartment investor Michael Fein is named in a lawsuit. KM-TEH reportedly owns 11 properties and about 1,600 units in the Kansas City area, many of which are also in bad repair.

KMBC 9 Investigates has uncovered multiple complaints from residents and public officials at several of KM-TEH investors’ properties across the metro.