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Seniors band together to file appeals against massive rent increases

Some rents have more than doubled in the four developments operated by the Trust and 37 seniors have now lodged their appeals.

Last November, many of the tenants marched on Parliament to protest the increases, which became effective on January 1.

Several residents have continued their protest by paying rent at pre-increase levels this year as they await the Rent Commissioner's ruling on the appeals.

Rent Commissioner Eugene Foley said yesterday that he would strive to deal with the appeals as quickly as possible, but the process would likely stretch into next month.

"Each application has to be looked at by the Rent Increase Advisory Panel," Mr. Foley said. "The panel will be given a brief on each of the cases and we will be taking members of the panel to each of the four BHT developments.

"Then the panel will sit down with each application and review the terms of the rent increase certificate I authorised and whether they are fair and proper."

Mr. Foley allowed a deadline extension up to January 14 to allow tenants to submit their appeals.

The four developments and their 82 units owned by the Trust are Purvis Park, Heydon Park in Somerset, Elizabeth Hills in Pembroke and Ferguson Park in St. David's.

Interviews this week with residents () revealed that tenants wanted to know why such large increases were being asked of them now after a history of rents rising by small percentages.

Some pointed out how the hike could be justified when maintenance of the units was "shoddy". Another pointed out wastefulness by the management, in particular the case of a water tank at Heydon Park that has been leaking since Hurricane Fabian. Rather than repair the tank, the resident said he had paid out for dozens of truck-loads of water to continually refill it.

BHT chairman Ronald Simmons said last October that rents at many of the units had not increased since 1996. And he added that the Trust's accounts showed losses and that $305 per unit per month was needed for maintenance alone.

We were unable to contact Mr. Simmons yesterday. Mr. Simmons' case has been backed by Housing Minister Ashfield DeVent, who is also the local MP for residents of the Elizabeth Hills development.

The tenants have included a letter in their appeals that was written by Opposition MP John Barritt, in whose Devonshire constituency one of the developments, Purvis Park, is situated.

"The residents were at a loss to understand how and why these huge rent increases had come about, particularly when the increases outstripped the cost of living," Mr. Barritt said. "It's quite something to put on seniors, not just financially but also emotionally and, in certain cases, it has affected people physically. To them, this defies explanation and it's personal, especially to those who have lived in these developments since day one."

Residents we spoke to had seen their rent increase by between 23 per cent and 120 per cent. Mr. Barritt said this was a marked change from the Trust's practice in the past of raising rent by small increments.

"The other thing that concerns me is that these increases appear to completely defeat the purpose of the Trust," Mr. Barritt said. "It's supposed to be helping the elderly and easing their burden, particularly those who are physically and mentally capable of living on their own, but who lack the financial wherewithal.

"The Trust was set up so those people should not have to go up to Financial Assistance or anywhere else for help.

"Now the Trust seems to be using a 'take it or leave it' approach. How has it come to this?"

The appeal letter points out that the Trust was founded under the terms of the Bermuda Housing Trust Act 1965 with the stated aim of "providing low-cost housing for the needy elderly". And, in the words of the Act, the Trust's function was to initiate "the relief of poverty, suffering and misfortune among elderly persons in Bermuda by the provision of accommodation for such persons on reasonable terms".

The letter also argues that criteria given by Mr. Foley for his decision to authorise the rent rise were flawed and that BHT rents could not be compared with the open market. "It is our respectful position that you erred in merely considering and giving weight only to the physical characteristics of each tenancy," Mr. Barritt wrote.

"The circumstances of these particular tenancies require that, as Rent Commissioner, you take into account the unique nature of the housing developments in which these tenancies are found."

The letter went on to quote the Bermuda Housing Trust Act and suggested that the "favourable terms" for tenants mentioned would almost certainly mean far below market value.

"The increases sought (by the BHT in the past) and obtained have been modest ? consistent with the aims and objectives and purpose of the Trust ? and the same approach should have once again been taken with these applications," the letter continued.

And it went on to argue that had rent increased at the same rate as inflation, as tracked by the Consumer Price Index, then a $305 rent in 1997 should now be $371.49.

"If, on top of that, you were to factor in a further annual inflation rate of four per cent, the monthly rent would be just under $400 a month for one of these small, one-bedroom units," Mr. Barritt wrote.

"That is a far cry from the $650 a month rent which you have approved and which dramatically, and arguably unjustifiably, outstrips the recorded increase in the cost of living over the same period."

Another Opposition MP to support the tenants is Louise Jackson. She said: "We in the United Bermuda Party (UBP) felt there was something about these increases that was not right at all. These developments are supposed to provide low-cost housing for needy seniors, so seniors living there would not expect to have their rent doubled.

"They get this ultimatum just before Christmas and are forced to go down to beg to Financial Assistance. It's degrading.

"These people are on fixed incomes, so where are they supposed to find the extra money? The $300 rent to them is the equivalent of the $2,000 rent to someone who is working."

Residents had told her of a lack of maintenance, which prompted Mrs. Jackson to further question the need for rent increases. "We have heard about inadequate locks and poor outside lighting," Mrs. Jackson said. "Maintenance is not being done. So what is the extra money for? And what's bothering me is, where is the extra money going?"

Mrs. Jackson criticised Premier Alex Scott for failing to come out to meet the seniors who marched on the House of Assembly last year and Minister DeVent for backing the rent increases. She said the Government's attitude to seniors was worrying.

"I hate to see seniors being jerked around," Mrs. Jackson said. "It's like they are saying, 'These people are old, we can do what we want to them'. And nobody seems to care that it's happening.

"We used to respect and honour our elders. These are the people who built the Bermuda economy and made the island the place it is today. Everybody today is living off the backs of these people. Now they are in what are supposed to be their 'golden years'.

"Some people say they should have saved more, but we should remember that they were working in the days before compulsory pensions."

Another concern for Mr. Barritt was that tenants had been asked by the BHT to sign leases containing significant changes.

"It just seems shabby that you call people in to sign new leases without a written explanation of what changes are being implemented and why," Mr. Barritt said.

"And I think it's a shame that the Government is not being supportive of these people. I say to the Government, shame, shame, shame on you."