The Carnegie House co-op faces a staggering increase in ground rent from $4.36 million to approximately $24 million due to lease negotiations. Previously, residents viewed their lease as manageable, but changing market conditions led to a sharp rise in costs. As the new rent may lead to default, many residents, including retirees on fixed incomes, risk losing their homes and financial equity. The situation has created significant anxiety among tenants regarding their futures and the feasibility of remaining in the community they chose for affordability and accessibility.
If the lease tenants can't pay the new rent, the building could go into default and residents would lose all equity in their homes.
Residents hoped for a manageable rent increase when the lease reset in 2025, but an independent arbitration panel announced a ruling that would raise ground rent from $4.36 million to around $24 million.
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