Tenants at the Castle in East Orange could see their rent doubled to over $4,000 a month
The East Orange Rent Control Board will consider the rent hike in two weeks.
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Tenants at the Castle, an apartment complex in East Orange, could see the rental rate double to over $4,000 a month.
Eighteen families living in the building are now holding out hope that the rent control board will cancel that plan, which has been suggested by a court-appointed receiver who took control of the property after it went into foreclosure.
That receiver is with Catalyst Property Solutions. It says the building will be shut down if the rent hike isn’t approved for the 18 families targeted.
Catalyst Property Solutions said in a statement, “A large part of the reason the property is in Receivership and pending foreclosure is that even at 100% occupied, it does not cover operating expenses at the current rent schedule. We are looking to increase rents to cover basic operating costs for the vacant units with a stair step increase for occupied units.”
However, tenants say that if the building was filled, the rate hike wouldn’t be needed.
Long-time tenants argue that if the rent is raised, they’ll be forced to move out.
“I would be homeless because I left New York because of rents that high. I came to East Orange because the rents were reasonable,” said tenant Erica Coleman. “We have 26 vacancies. If there’s a hardship, they should fill up the building. Charge the rents that you’re supposed to charge. And then there’s no hardship.”
Along with the Castle, Catalyst Property Solutions is in control of four other buildings in East Orange and is looking to do the same at those properties.
The East Orange Rent Control Board will consider the rent hike in two weeks.
A foreclosure judge is also expected to weigh in on the matter in January.
