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Rent increases ?terrorise? seniors, UBP charges

Housing Minister Ashfield DeVent has sanctioned the ?terrorising? of seniors living at Bermuda Housing Trust properties who are facing the possibility of 100 percent rent increases, the Opposition claimed over the weekend.

And the heat is on Rent Commissioner Eugene Foley, who promised his department would ?try to do the right thing? when considering the applications to increase rents at the four properties.

The final decision should be made this month for the increases to take effect by January 1, 2005, he said yesterday.

BHT chairperson Ronald Simmons revealed two weeks ago that applications have been made to increase rents at Elizabeth Hills, Purvis Park, the Hayden Trust and Ferguson Park.

Rents for the 82 units at the four properties have not been raised since 1996, with the exception of Ferguson Park in 2001.

Currently, rents vary widely at the properties, with some tenants paying as little as $260 per month for the one-bedroom or studio apartments. The proposed increases could affect some residents significantly more than others, with some facing a possible 100 percent hike ? or more.

In an article in Friday?s , Mr. DeVent backed the possible hikes, saying that an analysis of soaring maintenance costs (averaged at $305 per month) and residents? ability to pay had been conducted.

Fully one quarter of the tenants actually have the means to live elsewhere, he said, and others would be referred to Government Financial Assistance.

Mrs. Jackson said she was ?speechless? at Mr. DeVent?s comments, printed on the day the Throne Speech was read promising better care for seniors.

?Now he comes back from travelling ? probably first-class ? all over the world (searching for housing solutions), and says to the country that he backs rent hikes for seniors,? she said.

She dismissed assertions that many tenants do have the means to meet the rent hikes, and that the BHT is willing to be flexible with those who do not.

?To double someone?s rent when their income remains the same means it?s impossible for them to do it,? she said.

?There are people who cannot afford this.?

Mr. Foley said his office had received a ?surprising? amount of letters from BHT tenants about the proposed increases.

He declined to describe the tone of the letters, however one ? written by Purvis Park area MP John Barritt on behalf of tenants there ? was also sent to .

In the letter, Mr. Barritt urged Mr. Foley to consider the role of the BHT as defined by law: ?To initiate and administer one or more schemes for the relief of poverty, suffering, and misfortune among elderly persons in Bermuda by the provision of accommodation for such persons on favourable terms?.

?Any increase should be slight or gradual ? as has been the practice in the past ? consistent with the purpose of the Trust,? Mr. Barritt added.

?I would also contend that it was intended and always understood that the rents would be subsidised by the Trust, and that the rents charged would not reflect the cost of ongoing maintenance,? he said. BHT chairperson Ronald Simmons could not be contacted yesterday for comment.

The Trust does have the ability to raise funds through schemes such as ?concerts? and ?bazaars?, Mr. Barritt continued.

?This, in my view, is how any shortfall in income should be made up, and not by dramatic increases in rent such as those proposed.?

The office of the Rent Commissioner will consider all the responses from tenants, Mr. Foley said.

Once a final decision on rents is made, a certificate will be sent to each tenant as well as the Bermuda Housing Corporation, acting as agents for the BHT.

Mr. Foley said he himself, as well as Mr. Simmons and Dianna Taylor of the Department of Financial Services, had all touched base with some of the seniors who may be most financially threatened to give them information on what help is available. ?Financial Assistance is there to help,? he said.

?We want to set rents that are reasonable ... We?re going to try to make the right decision.?