Rent Hikes May Force Low-Income Tenants to Move Out

Rent increases scheduled to take effect at an apartment complex housing tenants on government assistance could force more than a dozen people from their homes.

Thirteen of the 32 federally subsidized tenants at the 400-unit Pelican Point Apartments will be affected by the increases. The hikes range from $75 to $110 per month and affect tenants whose leases are about to expire.

“I hate to use the word greed but that’s the only thing that comes to mind when you’re talking about a $110 increase,” said Kathy Adams, Section 8 officer with the Ventura City Housing Authority.

Among the most hard hit will be the complex’s 10 mentally disabled tenants, such as Mark Lareva and his wife Rachel, who will have to leave their home of four years by Dec. 1. That is when the new rates take effect.

They have already been turned down for one apartment and are scrambling to find housing before the Christmas holidays.

“I don’t think there’ll be any money left behind for presents,” Lareva said. “One thing for sure is that I’ll have to give up my car because I wouldn’t be able to afford payments on it.”

The typical rent for Pelican Point tenants on government assistance is $710 for a one-bedroom apartment and $775 for a two-bedroom, according to Adams.

Archstone Communities, owners of Pelican Point, had planned to increase the rent last year, but postponed the move, said Scott Monroe, a company vice president. But an increase could not be avoided any longer after not raising rents for five years, Monroe said.

“We took a look at the benefit that they had been enjoying and we thought it was a fair and reasonable request, while still keeping them below market value,” Monroe said.

A manager at the Pelican Point complex disagreed with the decision to increase rents, saying HUD tenants keep vacancy rates down and pay their rent on time.

“We are basically cutting off our nose to spite our face,” said Amy Torres, on-site manager. “I’m not in total agreement on what is happening with these housing people.”

Torres said that even a $75 increase was too much for tenants enrolled in the federal government’s Section 8 housing program. The rent subsidy program is designed to provide affordable housing to those who would otherwise be unable to secure decent accommodations.

“It’s kind of frustrating on my end because I have a huge responsibility to keep my facility full and keep expenses down,” Torres said.

Many of the people living in the complex and receiving assistance are elderly, physically handicapped or mentally disabled.

“We have been scrambling to find housing for our people. It’s a mess,” said Liz Aced, a counselor for Arc, a program that helps mentally disabled people make the transition to independent living. “These are people who don’t want to leave, but may have to.”

Pelican Point tenants who receive federal rent subsidies are enrolled in one of two programs. Some receive federal vouchers and have the option of making up the difference in their monthly rent.

But those on the certificate program--which includes most of the HUD tenants--have a maximum cap on their rents. Since the rent increase is above the maximum amount, those people will be forced to relocate.

“I figure we’ll deal with it and get them housing somehow,” said John Stack, program director for Arc, which has 10 clients living at Pelican Point. “It’s going to take extra time.”

The boom in the housing market has prompted landlords to meet the demand by raising rents. As a result, there are few affordable units available and that has people worried.

“Pelican Point is not the only one who’s doing this,” Adams said. “Everybody’s been raising their rents, ever since the newspaper articles started coming out.”

Some apartment buildings like Pelican Point have already paid off low-interest government loans, freeing them of any obligation to keep housing below market rates or to accept Section 8 tenants.

“I think the connotation when people look at Section 8, they take that as a negative,” Torres said. “There’s very few people that will take Section 8.”

Ventura Section 8 recipients have about a dozen apartment complexes in the city to choose from. And HUD officials say the current market allows building owners to be choosier about tenants.

“It’s pretty bleak,” Adams said. “I’ve encouraged clients to stay put, don’t rock the boat. We just have to bide our time. Landlords won’t even look at clients with HUD and they don’t have to.”

The shortage of low-income housing coupled with the private sector’s increasing refusal to acquiesce leaves the government with few choices.

“The irony is that probably in the long run, not letting [the poor] live independently will require some intervention and what will happen is the reverse of what we intended, which would mean more expensive housing,” county Supervisor Susan Lacey said.

Lacey said she thinks that this will result in more government-built housing, which will cost taxpayers more money.

Archstone officials say they are trying to renegotiate a loan with the government to keep rents down. In the meantime, tenants who don’t have leases will be hoping for the best.

“I learned to be on my own and I like to be on my own,” said Todd Taylor, a six-year resident who is developmentally disabled and made the transition to independent living. “I just hope I can stay.”