Council OKs Bond for Seniors Complex

A senior citizens complex is expected to be placed under new ownership and undergo a face-lift, although these changes will probably bring a rent increase for tenants.

The City Council on Tuesday unanimously approved the issuance of a $10-million revenue bond for the acquisition and rehabilitation of the Heritage Park Apartments, whose senior tenants are mostly on fixed incomes. Although the bonds still must be approved by a state agency, the council action was the first step in the process.

The prospective owners, Orange County-based Bertram Partners, said they hope to allow most of the tenants to stay in the building during rehabilitation.

Developers expect to raise rents about 3% a year, making rent for a one-bedroom apartment about $564, up from $485-$530, according to city estimates. Tenants living in two-bedroom apartments could see their rent increase to $670 from $600-$630.

Under the new ownership agreement, rentals would be restricted to seniors who earn at or below 60% of the median income. That would amount to less than $24,840 a year for a single person and $28,380 for a couple, according to Ernie Whitaker, the city’s housing rehabilitation program manager.