Grove Pointe and SVCMC
St. Vincent’s signed a Master Lease with Grove Pointe, an apt. complex in Jersey City, that encompasses the 20 apartments in which St. Vincent’s resident physicians live. These resident physicians in turn have subleases with St. Vincent’s. They have been paying rent to St. Vincent’s via bi-weekly wage deductions. Under this three-way arrangement, St. Vincent’s was paying over the deducted rent they received plus an extra amount to cover the higher rents they agreed to pay in the Master Lease for each apartment.
Termination/Rent Increase Notices
On or about February 18, the resident physicians living at Grove Pointe started receiving termination/rent increase letters. The letters say that rent will go to market rates on March 1; the increase is substantial. Each letter specifies what the market rate for that apartment will be; it is the higher amount that St. Vincent’s agreed to pay for each apartment.
The notices say that the lease to St. Vincent’s has been terminated. Although St. Vincent’s has been getting the rent payments from the resident physicians via bi-weekly wage deductions, St. Vincent’s has not paid rent on the apartments occupied by the resident physicians for January and February and that’s why Grove Pointe’s letter says they terminated the lease to St. Vincent’s.
What is the hospital doing about this?
St. Vincent’s met with the Grove Pointe landlord on Friday, February 19th. Afterward St. Vincent’s told CIR: “Grove Pointe does not want the residents evicted. St. Vincent’s is trying to get Grove Pointe to agree to keep residents at current rent levels at least until the end of the year (presumably the end of the residency year, June 30). St. Vincent’s as part of this deal will remit the deductions they have made from the residents’ wages.” The deductions that St. Vincent’s is holding is the resident’s rent money. The hospital will return the rent deducted from the 1/16, 1/30, and 2/13 pay periods on residents’ March 4th paychecks. This money was already taxed and will not be taxed again.
What is CIR doing about this?
A CIR attorney spoke with Grove Pointe’s attorney on Friday, February 19th. The Grove Pointe attorney said that Grove Pointe did not have a problem with the resident physicians as tenants and would be willing to let them stay on at reduced rents. The Grove Pointe attorney said that they file eviction papers in court naming both St. Vincent’s and each resident physician who was a subtenant.
CIR has made an arrangement with an experienced Landlord/Tenant attorney in New Jersey, Joan Pransky under which CIR would pay her fees for her representation of any Grove Pointe residents who choose to be represented by her in the housing dispute with St. Vincent’s and Grove Pointe. Attorney Pransky spoke with the Grove Pointe attorney who confirmed everything he told the CIR attorney. On Tuesday evening, February 23 the Grove Pointe residents met with Attorney Pransky. They got a legal perspective on their situation and heard about their options moving forward. Their top concerns were developing a direct relationship with Grove Pointe, maintaining rents at their levels they were paying St. Vincent’s, and being able to stay at least until June 30. Many Grove Pointe residents agreed there is strength in numbers and will work together with Attorney Pransky as their advocate; they signed retainer agreements with Ms. Pransky and agreements with CIR regarding payment of the attorney fees. Attorney Pransky can only represent residents who have signed these agreements.
Attorney Pransky has begun meeting with Grove Pointe’s attorney and is working on negotiating the new terms of residents’ leases. One important development is that Atty Pransky and CIR has learned that due to improper filing the eviction notices that Grove Pointe filed were not accepted. This is good news for residents as the eviction will not be reported to any credit monitoring agencies. Grove Pointe does not have plans at this time to further pursue the eviction process.
If you are a resident living in Grove Pointe that wishes to be represented by Attorney Pransky in negotiations with Grove Pointe, or if you have other questions, IMMEDIATELY contact CIR at stvincent@cirseiu.org.