Tenants of a VOA property in Denver fear future rent increases, some ‘feeling 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. At the beginning of April, tenants received a letter informing them of a 15% increase from June.

Andrea Loudd, who has lived in the complex for nine years, says this is an arbitrary and unfair increase that will put her in a difficult position.

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

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

Many residents of the complex also deal with medical conditions and live paycheck to paycheck, as most of them are on Social Security and/or disabled.

“I came here looking for something I could cover with my money,” Loudd said.

Loudd is now unsure whether she will be able to pay the rent on the complex after the rent increase scheduled for June.

She tells CBS Colorado that her disability insurance check is less than $950 a month. Her rent is currently $795 and will increase to $914 in June 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 are supposed to represent and care for?” Loudd asked.

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

To put things in perspective, federal program rules require that properties, such as the La Casa De Rosal Apartments, be supported by housing tax credits to rent apartments according to the rent and income limits set by the U.S. Department of Housing and Urban Development .

According to Denver’s Department of Housing Stability mandatory affordable limits, a Denver tax credit at 50% median income can charge up to $1,396 for a two-bedroom home.

Although Loudd will have to pay hundreds less, she says the increase is still a burden.

“I felt betrayed,” Loudd said, “I think I’m working with this organization that should be compensating for this kind of crisis, that should be there for seniors living 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,” Contreraz said.

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

“This is a joke. If they can get away with this, they can get away with everything else,” Contreraz said.

In a statement to CBS Colorado, Peter Desjardins, director of real estate operations at Volunteers of America National Services, said:

“We understand that there are concerns about a rent increase at Casa de Rosal Apartments. As an organization, we are discussing the possibility of implementing this in phases to prevent unnecessary burdens being placed on residents. The rent increase is necessary to ensure that we can continue to provide a safe, well-maintained and operational living environment for our residents.”

According to the organization, these discussions are in the early stages and “no specifics have been identified and/or implemented at this time.”

VOA emphasizes that they understand residents’ concerns about a rent increase and are considering a path forward that will not burden residents.

However, Loudd is not convinced and hopes the organization will change its mind.

“You get millions of donations to help, not to hurt, but now you’re hurting and you’re still receiving millions of donations,” Loudd said.

The Colorado Housing and Finance Authority, which supported the building’s development with an allocation of federal low-income tax credits, says that when new rent and income limits are published each year by the U.S. Department of Housing and Urban Development, it will belongs to the owner of the property. /choice of the manager to adapt to the new rental limits at the time of rental renewal.

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

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