Tenants of a VOA property in Denver fear future rent increase, some "feel betrayed"

Tenants of the Casa De Rosal Senior Apartment Homes fear a future rent increase. The complex is an affordable housing community owned by the nonprofit Volunteers of America. In early April, tenants received a letter informing them of a 15% increase beginning in June.

Andrea Loudd, a resident of the complex for nine years, says this is a random and unfair increase that will put her in a tough position.

"I personally moved into this complex because I had a medical condition and I can no longer afford my home," said Loudd.

Loudd has back problems and depends on a scooter to get around.

Many residents at the complex are also dealing with medical conditions and are living paycheck to paycheck, since most of them are on Social Security and/or disability.

"I came here looking for something that my funds would cover," said Loudd.

Loudd is now unsure she can afford rent at the complex after the rent increase that is set for June.

She tells CBS Colorado her Social Security disability insurance check comes in at less than $950 a month. Her rent is currently at $795 and by June it will increase to $914 due to a 15% increase set by the property.

This does not include utilities and other miscellaneous bills.

"Why would a humanitarian organization do this to the people they're supposed to be representing and taking care of?" asked Loudd.

State and federal regulators cap how much facilities like this can charge. Typically residents already see a 5% increase annually every time they recertify through the Colorado Housing and Finance Authority. The organization is responsible for ensuring the property complies with federal program requirements established by the IRS including rent and income restrictions.

To put things in perspective, the federal program regulations require housing tax credit supported properties like the La Casa De Rosal apartments to lease apartments according to the rent and income limits established by U.S. Department of Housing and Urban Development.

According to Denver's Department of Housing Stability's mandatory housing affordable limits, in Denver at a 50% area median income, a tax credit property can charge up to $1,396 for a two-bedroom residence.  

Although Loudd is being charged hundreds less than that, she says the increase is still inconvenient.

"I felt betrayed," said Loudd, "I am thinking I am working with this organization who is supposed to offset these type of crisis, is supposed to be there for seniors who live on a fixed income."

Seniors like Richard Contreraz can't afford it right now.

"I don't want to be in that situation. .. . I've been homeless before and I don't want to be in that situation," said Contreraz.

With the new increase, Contreraz says he will be spending almost 90% of his income on rent. After all his medical bills, utilities and rent, he says he will be left with about $50 each month.

"This is a joke, if they can get away with this then they're going to get away with everything else," said Contreraz.  

In a statement to CBS Colorado, Peter Desjardins, the chief of real estate operations with Volunteers of America National Services, said the following:

"We understand there are concerns regarding a rent increase at Casa de Rosal Apartments. As an organization, we are discussing the possibility of implementing this in a phased approach to avoid placing an undue burden on the residents. The rent increase is necessary to ensure we can continue providing a safe, well-maintained, and operational living environment for our residents."

According to the organization, these conversations are in the beginning stages and "no specifics have been determined and/or implemented at this time."

The VOA emphasizes they understand the residents' concerns about a rent increase and are considering a path forward that will not place a burden on residents.

However, Loudd is not convinced and is hoping the organization changes their mind.

"You're given millions of donations to help, not hurt, but now you're hurting and you're still receiving millions of donations," said Loudd.

The Colorado Housing and Finance Authority which supported the development of the building with an allocation of federal Low Income Housing Tax Credits says when new rent and income limits are published by the U.S. Department of Housing and Urban Development each year, it is within the property owner/manager's choice to align to the new rent limits at the time of lease renewal.

CHFA offers a Tenant Hotline (303.297.7442) for residents and is available to speak with tenants of Casa de Rosal regarding any concerns they would like to discuss, including those related to rent increases.

"We would welcome the opportunity to connect to help ensure that any increases are in accordance with the program guidelines," said Matt Lynn with the Colorado Housing and Finance Authority.