Tenants scramble as HUD abandons Newark residential tower

TRD New York /
Oct.October 25, 2011 03:15 PM

Thanks to a failed inspection caused by a variety of wiring and safety issues, Carmel Towers in Newark, N.J. will no longer receive financial aid, and according to the New York Times, that has the nearly 200 families occupying the building scrambling for a new home.

The Department of Housing and Urban Development, which has often paid more than $1,000 to fund most of the monthly rent for each apartment, declined to renew its contract with the building. Carmel Towers failed two inspections, including one last July when it only achieved 18 out of a possible 100 points.

Though most of the tenants, who were only required to contribute 30 percent of their income towards rent, will receive vouchers to help pay rent elsewhere, many can’t find another home or don’t have the cash for a move and the likely cost increases. A city council member wants the government to fund their housing search.

Meanwhile, it’s unclear what will happen to the building, located at 440 Elizabeth Avenue, currently managed by R.P. Marzulli Company. (The company did not respond to the Times’ request for comment.) Considering its transportation-friendly location adjacent to I-78 and commuter rails, the Times said it could make a good rehabilitation project for an ambitious developer. [NYT]


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