Maimonides Medical Center said it is scaling back its housing program for employees due to maintenance costs.
The New York City-based organization made the decision more than four decades after it purchased apartment buildings to offer housing to full-time employees.
"This program was created to support our active employees," the health system said in a statement shared with Becker's Jan. 2. "Over the decades, many tenants changed employment status but did not leave employee housing."
Now, in recent years, the costs of maintaining and managing the properties has increased significantly, with building upgrades estimated at millions of dollars, the hospital said. The hospital also pays $86,632 monthly to cover rent increases and delinquent rents, and, at one point, was paying $336,000 monthly to cover these costs.
As a result, Maimonides in 2018 decided to sell seven of the buildings to Iris Holdings Group for $68 million. Then last year, it decided to discontinue the housing program in two other buildings.
Meanwhile, Maimonides workers and tenants of those seven buildings, who formed a tenant union, are speaking out against what they say is the hospital's decision to "kick them out of their homes," according to BK Reader.
Members of the Maimonides/Iris Tenant Union contend they are not allowed to remain in their homes and that the hospital is attempting to evict dozens of them, the publication reported. The tenants also say the buildings are in disrepair, with some residents paying for repairs out of their own pockets.
"Tenants are outraged that after decades of service to the hospital and praise as essential workers during the pandemic, Maimonides has not maintained their homes and is now trying to evict dozens of them and their families," the tenants said, according to BK Reader.
The hospital pushed back against the union's characterizations, saying it gave tenants years to find new housing and that tenants were notified before the 2018 sale was final. When the pandemic hit, tenants were given an additional year.
Maimonides said it resumed the process in 2022 and communicated with tenants in multiple ways (written and verbal) that the buildings must be vacated. The hospital said it has worked with tenants on an individual basis, in some cases offering flexible moving dates or alternative housing.
Full-time current employees who had yet to move were offered five months rent-free until Feb. 29, 2024.
"There is tremendous financial pressure on healthcare systems and hospitals, especially after COVID," Maimonides said. "Given the expense of the NYC real estate market, this is a painful situation and we understand that tenants are facing tremendous distress.
"Our challenge is that we are a safety-net hospital. Every dollar counts and we have to focus our resources on patient care."
Members of the tenant union rallied outside the hospital in November to raise awareness about their concerns, and they say they plan to hold another rally soon, according to BK Reader.