Worcester Apartment Collapse: Tenants Say Rent Hikes Preceded Disaster

WORCESTER, MA — In the weeks before a roof collapsed at a Worcester apartment building, many tenants were facing rent hikes as high as 50 percent following the sale of the building to a Franklin-based company.

About 100 residents of the 267 Mill St. apartment building were left homeless after Friday's disaster, where a portion of a roof collapsed through several floors of the three-story building. Several porches on the exterior of the building also collapsed. The owner had pulled permits to replace the roof and porches before the collapse, according to city records.

No one was injured in the collapse, but local community groups and city emergency management officials have been scrambling to find homes and support for the former Mill Street residents.

According to property records, 267 Mill LLC purchased the building on June 2 for about $5.7 million. Around June 26, the new owner told tenants they would need to either renew their leases by Aug. 1 at higher rates — some as much as $400 or $500 — or leave their apartments. The tenants were also told they would have to pay to increase their security deposits to be in line with the new rental rates.

A group of tenants spoke about the issues this week with District 5 Councilor Etel Haxjiaj, who represents the renters on city council, and a staff member of state Rep. David LeBoeuf's campaign. Some of the tenants shared messages traded with the new building owner about rent increases and the response to the collapse.

Reached by phone Wednesday, property manager Michelle Fren declined to answer questions about the building, asking for them to be sent in writing. An email inquiring about the rent increases, the status of the building and compensation for tenants was not immediately returned.

"We're not looking to make any statements," Fren said in a short phone call.

In a June 28 email, Fren told tenants the company had to increase rent to pay for the mortgage the company took out to buy the building.

"Not that this is really anyones business, but I am attempting to explain where we are coming from with the rent increase," the email said. "The fair market value on these units is actually closer to $1800 a month so when we are offering renewals in the $1500 a month price range then we are actually still giving the existing tenants a very large discount on what a new tenant would be paying."

Some longtime renters were paying about $1,000 for apartments at the building before 267 Mill LLC bought it in June, according to officials.

Messages shared by tenants following Friday's collapse show that Fren had offered to give security deposits, last month rent payments and prorated rent back to some tenants. Tenants have told officials they have not received clear information about when they would receive compensation, and some tenants were not aware about the money.

In one message, Fren asked tenants to pass on information about payments, according to documents shared with Patch.

"I know there are some tenants that may not have access to email, so if anyone knows who those people may be, please try and inform them," a message from Fren to tenants about returning security deposits said.

Fren also told tenants the company plans to reopen the building at some point, and offered to put former residents on a waiting list following repairs.

On Wednesday afternoon, the building was walled off by a fence and partially boarded-up. A blue tarp hung across the portion of the building where the roof collapsed, and a placard with a white X against a red square was attached to the structure.— a warning that the building is not safe to enter.

The Mill Street residents on Tuesday attended a meeting at the DCU Center with the Massachusetts Emergency Management Agency, city officials and local social service agencies. The tenants were offered assistance finding new homes, along with other support like mental health counseling.

Haxhiaj said it's not fair that the property owner has placed the burden of caring for the displaced tenants on the city and local nonprofits. The United Way of Central Massachusetts has set up a special fund to help the former Mill Street tenants.

"They are coming into our community, buying cash properties, forcing our families to have $400, $500 increases, and they're expecting us to pick up the tab when they're not doing something right?" Haxhiaj said during a Tuesday city council meeting.

Haxhiaj said she would be working with LeBoeuf and state Sen. Anne Gobi on possible state level protections for renters for similar emergencies in the future. Mayor Joseph Petty also requested a report from the city solicitor about how the property owner is responding to the collapse.

"I want to make sure these families know we're going to stand by them, but they also need justice, and they need accountability," Haxhiaj said Tuesday.