IRVINE : Council Won’t OK Rent Hike

Council members have refused to approve 7% rent increases for “affordable housing” apartments subsidized by the federal government, but they are powerless to prevent the increases from taking effect.

In fact, some of the rent hikes had already been imposed by the time council members reviewed documents last week from the Department of Housing and Urban Development. When coupled with last year’s rent hikes, the increases total nearly 11%.

The higher rents were based on a 1994 median income of $58,800 in Orange County, as determined by the federal housing department. But critics of the rent hikes question the HUD figures, pointing out that Chapman University has calculated this year’s median income at $54,413.

A family of four earning less than 50% of the median income will pay a maximum $735 a month for a three-bedroom apartment under the new HUD guidelines. Using the Chapman University figures, the maximum rent for the same family would total $680 a month.

“I doubt seriously the accuracy of those HUD figures,” said Councilman Greg Smith. “I would hope that in the future, those landlords are sensitive to the fact that those figures don’t really represent reality.”

Although the City Council unanimously agreed to not adopt a resolution accepting the new HUD guidelines, the council cannot roll back the rent increase. The HUD apartments are owned and maintained by Irvine Apartment Communities, a publicly owned company that oversees 13,541 apartments in Irvine.

“The city has no jurisdiction,” said Councilman Barry J. Hammond. “It’s an issue between the landlord and the tenant. By taking no action, we are stating to the property owners that we’d like them to reconsider their position.”