Rising rents at housing community for senior citizens have residents concerned
MIAMI - South Florida senior citizens at one affordable housing community say they are concerned about rising rents.
The grand opening of Tucker Tower in March attracted attention and celebration from community leaders. The 120-unit building is designed to assist seniors.
Residents approached us two weeks ago, concerned about rent increases in the middle of their lease. The rent is due July 1st.
Tucker Tower management posted a flyer on April 30 announcing an increase in rent starting today, in some cases by as much as $138 a month. Some residents feared being unable to stay after moving in just a few months ago.
"I'm not sleeping," shared Georgina Milhet, a Tucker Tower resident. "I'm on the verge of crying."
Milhet is restless but motivated.
"I love living here," added Milhet. "What was done is not fair."
Milhet worried about a flyer revealing a rent increase mid-lease. It pointed to a section of her lease contract for "units participating in government-regulated affordable housing programs."
The provision states that if the Area Median Gross Income changes, "the owner may, at its sole discretion, increase the rent..."
The Housing Trust Group, which owns and operates Tucker Tower, provided a 60-day notice of the rent hike.
CBS NEWS Miami reporter Joe Gorchow asked Milhet: "Were you aware of the provision that says they can raise your rent?"
Milhet: "Absolutley not. That's on me because I was desperate to get in the building."
Milhet's neighbor, showing us her rental agreement, also felt left in the dark.
"Since that came, the only thing I think is how I stretch the $2000 a month to afford the increase," shared Juana Diz.
They each expected to pay over $100 more monthly than their original lease agreement.
I wrote to the Housing Trust Group, who responded through a PR firm. CBS News asked why they chose to increase the rent.
"The federally mandated timeframe for rent increases is generally July 1, with few exceptions, as is the case in this situation. The increase must occur on July 1, irrelevant of when the individual leased the apartment. We do not have the option to say to individuals who leased in January of this year that they will receive an increase next January. Regulations do not permit us to do that. We have to realize increases when we are told, and to the amount specified by HUD, when all LIHTC owners are doing so. Again, all is completely regulated." - Matthew A. Rieger, President and CEO of Housing Trust Group.
"I felt it was unjust," said Miami-Dade County District 9 Commissioner Kionne McGhee. "I hold firm that the residents should win in this issue."
McGhee celebrated Tucker Tower's grand opening on March 4. Months later, his smile faded when residents told him about the increase. McGhee says he spent nearly two months examining contracts and seeing how his office could help resolve the issue. He tells us he spoke with HTG representatives Monday morning, seeking a resolution for Tucker Tower residents.
"The residents will not see an increase in their rate," shared McGhee. "A letter will be sent out notifying them of such."
McGhee says there's another call tomorrow to finalize details with HTG. Part of the discussion will include that provision giving HTG the discretion during every lease term to raise rates based on new, available AMIs.
For now, residents are tearful and thankful that the rent rate will stay the same for the lease agreement.
