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Government rent hikes postponed again

Public housing tenants have received another reprieve on rent hikes.Housing Minister the Hon. Quinton Edness yesterday told The Royal Gazette he met for a second time with tenants in the Fenton's Drive,

Public housing tenants have received another reprieve on rent hikes.

Housing Minister the Hon. Quinton Edness yesterday told The Royal Gazette he met for a second time with tenants in the Fenton's Drive, Pembroke area and promised not to increase their rents until October.

And while Mr. Edness had not yet consulted with Housing officials, he said the rent increase delay will probably be extended Islandwide.

However, the Minister quickly added that Government will not be making any further concessions on the amount of the increase.

The proposed rent hikes -- which originally ranged from 26 to 19.4 percent -- were introduced as part of Government's three-year plan to bring its residential rents "more in line with market level''.

A widespread Bermuda Housing Corporation review showed that total annual rents being charged to Government tenants were some $1.3 million less than the total market rents of the properties, Mr. Edness has pointed out.

And he noted that the BHC had not increased its rents since 1992.

But after a heated meeting with Fenton's Drive tenants at St. Augustine Hall on July 11, Mr. Edness promised to reduce the rent increase rate to 12.5 percent.

He also said BHC rents will not be set at market levels and he postponed introducing the increase until September.

This, Mr. Edness added, was to give him time to meet again with tenants who have complained about the increase and other public housing issues.

Yesterday he said: "I met with tenants on August 8. I was not able to satisfy all of their concerns.'' Mr. Edness said he told the tenants, who packed St. Augustine Hall, he could not go below the 12.5 percent (rent increase).

But he said he assured them that their rents will not be increased until October. And he said anyone who could not afford to pay their rent, would receive assistance.

"The reason for this (delay in increasing rents) was because a lot of parents, particularly those from single-parent households, will have to spend money on back-to-school items,'' Mr. Edness said.

"But in fairness to the Bermuda Housing Corporation and taxpayers we had to strike a balance. And it is not unreasonable.

"They (Fenton's Drive tenants) were not happy with it (the rent increase) but they realise we all have to take some responsibility.'' Mr. Edness promised to review rent increase rates for the next two years. But he said the rent will have to be increased.

Fenton's Drive tenants committee head Mrs. Shirlene Hayward could not be be reached for comment yesterday.