The 75 Prospect Street Tenant Association in East Orange, NJ, held a press conference on August 16 at their building with Rutgers Law Housing Justice & Tenant Solidarity Clinic attorneys.
An Essex County judge has appointed a receiver to take over management of 75 Prospect Street in East Orange, New Jersey. Members of the 75 Prospect Street Tenant Association demanded a receiver in two separate lawsuits due to the Weiss Property Group’s well-documented history of neglect, including pervasive leaks, mold, and dysfunctional elevators. Effective December 7, 2023, the receiver, who was proposed by Federal National Mortgage Association (Fannie Mae), is charged to take immediate control of the building and to hire contractors to make repairs. The court’s order bars the building’s owner and members, including Mordechai Weiss, from entering the building and collecting rents.
Professor Greg Baltz, co-director of the Housing Justice & Tenant Solidarity Clinic said, “We commend Fannie Mae and the Federal Housing Finance Agency for moving to protect tenants living in a deteriorating, privately owned apartment building for which they provided federal financing.”
The Rutgers Law School Housing Justice and Tenant Solidarity Clinic represents the 75 Prospect Street Tenant Association in the two separate suits. In August 2023, the 75 Prospect Tenant Association sued under the New Jersey Multifamily Housing Preservation and Receivership Act. Then, in November 2023, Fannie Mae sued to foreclose on 75 Prospect Street based on the owner’s failure to maintain the 44-unit rental building and due to an unauthorized transfer in ownership. In the lawsuit, Fannie Mae cited its public mission to provide liquidity, stability, and affordability to the U.S. housing market, including the market for quality, affordable rental housing.
Erica Coleman, president of the 75 Prospect Street Tenant Association said, “The 75 Prospect Street Tenant Association praises Fannie Mae and their representatives for supporting our demand for a receiver after witnessing our living conditions with their own eyes. To the tenants of East Orange - organize, and you too can evict your slumlord.”
The 75 Prospect Street Tenant Association joined Fannie Mae’s request that the court appoint a receiver in the foreclosure proceeding. In support, the 75 Prospect Street Tenant Association submitted to the court over 1,000 open code violations placed by the City of East Orange, photographs of horrendous conditions, and sworn statements.
“I have not had enough water reach my tenth-floor apartment to bathe or cook since mid-October,” said Yazmin G., a member of the 75 Prospect Street Tenant Association. “Now that Fannie Mae’s receiver is managing the building, I am hopeful that they will respond to emergencies like mine immediately.”
New Jersey law protects tenants’ right to remain in their apartments after foreclosure and sale.
Alaina Thomas, staff attorney at the Housing Justice & Tenant Solidarity Clinic said, “We applaud each member of the 75 Prospect Street Tenant Association who fought to defend their home. We acknowledge their fight and thank Fannie Mae for recognizing the need for their receiver at 75 Prospect Street. The 75 Prospect Tenant Association has shown all of East Orange that the most effective way to stand up to predatory landlords is to organize.”
Fannie Mae's decision to foreclose on Weiss Property Group's 75 Prospect Street is part of a larger pattern of Fannie Mae and Freddie Mac filing for foreclosure after tenants organize around substandard conditions. In May 2023, the Federal Housing Finance Agency, which is the conservator for both mortgage companies, signaled a renewed interest in tenant protections when it issued a call for ideas on how to address tenant challenges in multifamily properties.