A Palms Greens Recreation Association PowerPoint presentation explaining its recent bankruptcy filing ended in chaos on March 31 after scores of homeowners at the 55-plus community demanded the resignation of the association's president, Lisa DeFabritiis.

"If you people cannot be respectful, I'm going to end the meeting," DeFabritiis said. And she did, after a one-hour detailed discussion of the events that led to the bankruptcy at the suburban Delray Beach complex, built more than 50 years ago. DeFabritiis was about to take questions when the meeting deteriorated into a shouting match between supporters and detractors of the Recreation Association that oversees amenities at Palm Greens, one of the larger 55-plus condominium communities in Palm Beach County. Impacted by the bankruptcy are the 1,400 homeowners at the two condo associations at Palm Greens, Condo 1 and Condo 2. Also affected are those who have bought homes at Delray Trails, a higher-end development of 436 townhomes that Lennar is building on what once was the Palm Greens golf course. The two communities lie next to each other north of Lake Ida Road between Military Trail and Jog Road. Condo 1 and Condo 2 and Delray Trails are not involved in the bankruptcy filing, but the outcome will determine whether their residents can use the new recreational amenities. The uncertainty is why so many people are upset over the bankruptcy filing.

More than 400 residents of Palm Greens and Delray Trails listened to a PowerPoint presentation on Tuesday, March 31, 2026, that explained why the Palm Greens Recreation Association filed for bankruptcy.

 

Recreation Association president blames Lennar

One of the issues that DeFabritiis raised was Lennar initially constructing homes at Delray Trails before building the new recreation complex, which she alleged was a breach of its contract with Palm Greens. The clubhouse and swimming pool opened Jan. 30, three years behind schedule, according to the Recreation Association.

The Development Agreement was first signed in 2019 with 13th Floor, a company that bought the golf course at Palm Greens with plans to build townhouses there. A condition of the sale required 13th Floor to build a new recreation complex for the community.

A year later, Lennar purchased the development plans, assuming responsibility for carrying out the terms of the agreement that 13th Floor had negotiated. The Recreation Association maintains that it never approved the assignment to Lennar, which was another breach of the contract.

Now, in the two months that the new Lennar-built clubhouse has been open, the Recreation Association claims it has identified significant building defects that include:

• Faulty air conditioning.

• Defective swimming pool heaters.

• Rust on pool railings.

• A smaller pool than promised.

• Lack of a catering kitchen.

• A clubhouse that is not ADA-compliant.

At the March 31 meeting, DeFabritiis told a crowd of more than 400 that the Recreation Association filed for bankruptcy to restructure its debts and protect its assets to continue to operate, as well as to transfer more than a dozen state-court lawsuits into bankruptcy court to save legal fees.

Litigation costs are a major reason for the bankruptcy filing, she said.

"We have and are always ready to talk with our adversaries in good faith to settle lawsuits. Stop accusing the Rec of wanting to keep these lawsuits going!" she said during the presentation.

She blamed Lennar for the problems at Palm Greens, accusing it of conspiring with Condo 2's leadership to seize its assets.

She alleged the goal is to depress prices at Palm Greens so Lennar can buy out the community to build much more expensive homes on sites that currently house Palm Greens condos.

Todd Marrazzo, the treasurer for Condo 2, told The Palm Beach Post that the Recreation Association had made "baseless accusations" against Condo 2 and any person in the community who disagrees with it. He said Lennar has been "a valued partner" that has invested money to improve Palm Greens' quality of life.

Marrazzo has filed a defamation lawsuit against the Recreation Association for alleging he mismanaged Condo 2 finances. At the time the alleged mismanagement occurred, Marrazzo claims he was not even on the board.

The Post reached out to Lennar for comment, but representatives did not respond.

Key court decision is coming by April 8

Condo 2 has called on the bankruptcy judge to appoint a trustee to oversee the Recreation Association. Condo 2 lawyers say a trustee is needed to prevent "gross mismanagement of the Recreation Association's limited resources."

Appointment of a Chapter 11 Trustee would "prevent a possible catastrophic financial burden" from being placed on the Palm Greens community, according to the Condo 2 legal filing.

"Why does Condo 2 keep going after their own community instead of Lennar?" DeFabritiis asked, drawing a round of boos from Condo 2 owners but applause from others in the audience.

"The lawsuit with Lennar would have likely settled a long time ago, but when you have 1 out of 3 of your family members siding with your adversary, it emboldens your adversary because a judge will question why all members don’t agree. Whereas, if all members agreed, these cases would have been over because we are stronger when we are united," said DeFabritiis.

Bankruptcy Court Judge Erik Kimball has ordered the Recreation Association either to accept or reject the development agreement with Lennar by April 8.

Accepting the agreement would result in Lennar assuming full control of the entire recreation campus,including all of the recreation association's property, DeFabritiis said.

She said Lennar would decide how $82,000-a-month in recreation assessments should be spent. Eventually, Lennar would turn over the amenities to a new recreation board consisting of the three communities, but it is unclear when that will occur.

Rejecting the agreement, a position advocated by the Recreation Association, would result in Lennar losing easement rights that provided Delray Trails' homeowners with an access road to get into their community.

Losing the easement would force Lennar to pay millions of dollars to keep the easement, DeFabritiis said, acknowledging the issue could result in another round of costly litigation.

DeFabritiis asked for applause to indicate whether the Recreation Association should either accept or reject the development agreement with Lennar. Both sides yelled and clapped so loud it was difficult to conclude what owners wanted the Recreation Association to do.

After that, chaos ensued.

Members of the audience tried to grab the microphone to ask questions. DeFabritiis and other members of the Recreation Association walked off the stage. Later, she told The Palm Beach Post that the chaos was the result of disruptors aligned with Lennar.

Critics of the Recreation Association began chanting: "Resign Lisa D."

Meanwhile, recent bankruptcy filings have made the convoluted case even more convoluted.

The Recreation Association has fired its initial bankruptcy lawyer, Tate Russack of Venice, claiming his fees were excessive. Russack charged $93,861 for less than a month of work. He defends his billings, claiming they were reasonable and work he did was done on an expedited basis.

Details in legal bills indicate why initial attorney was fired

Russack included unredacted billing details in his submission, a decision the Recreation Association claims violated attorney-client privilege. The bills provide a trove of information about the contentious relationship between Russack and his client. Russack says he:

• Felt threatened by emails sent to him by Mitch Stein, a resident who was pushing him to pursue lawsuits filed in state court that Russack believed should be settled. “Get him under control or get him out of the loop,” he told the association.

• Raised the issue of why the association sued one of the two condo associations at Palm Greens, noting it was basically suing itself since it had a 50% interest in the Recreation Association.