A HUDDERSFIELD playgroup could be closed by July 19.
St James's Playgroup uses the former Holy Trinity Church Hall in St James's Road, Marsh.
The building was bought four years ago by developers CDM Project.
However, as it used to belong to the Church of England, a covenant was put on it stating that it had to be used for educational or religious purposes.
Playgroup manager Vicky Horsfield said: "The church used to own the building and they sold it to some property developers who want to turn it into flats, but there's the covenant on it."
She said that because the developers could not turn the building into homes they had increased the playgroup's rent.
She added: "We paid next to nothing when the church owned it. Now we pay £3,600 a year."
Ms Horsfield said the developers were now asking for £12,000 a year and the threat of closure was getting ever nearer.
The playgroup received a letter from CDM Project a couple of months ago saying they had to be out by July 19.
Ms Horsfield said: "They'd rather it be boarded up than us stay there, because he's running at a loss with the heating and everything.
"They said that if no-one takes over downstairs he'll board it up. It's very sad, because there's nowhere else in Marsh for the children to go."
A slight ray of hope could come in the form of community group the Marsh Forum.
"They're trying now to raise enough money to use it as a community building," said Ms Horsfield.
The Little Pumpkins children's play gym, above the playgroup in the same building, is not affected.
CDM Project would not comment.