Legal Action should be taken against that condo association. These poor tenants had no idea their money was going elsewhere. I think a class action lawsuit is in order and the tenants should be allowed to stay in their homes. It is extremely sad that these families had their utilities shut off and were forced to move because of that corrupt association.
If the condominium association misappropriated funds, then the residents should not be penalized. The condominium association should be dissolved and reformed under new hierarchy and the residents should have any funds that were misused put towards their future rent. The condominium association should also be put under investigation and the residents should be allowed free rent for the time that they supposedly did not pay.
Their condo association should have found a way to pay the electric bill. These people paid money to the Condo association specifically for that purpose and they should not have been punished for bills that the Condo association did not pay. At the very least, the condo association should have to find them new homes.
When a homeowner buys a condominium and agrees to pay condo fees to the HOA, they do so with the expectation that those fees will be used properly and in accordance with the HOA guidelines. When the HOA breaks their agreement and misappropriates fees to the point where residents can no longer live in their homes, the association has failed to uphold its contract and should be held legally responsible.