Rents To Increase By 4% At County’s Senior Housing

Rents will increase 4% in 2024 at the four senior housing buildings owned and operated by the Anoka County Housing and Redevelopment Authority.

That’s below the 6% rent hike that was approved for this year, according to Karen Skepper, HRA executive director.

The HRA’s Board of Trustees, which comprises the seven members of the Anoka County Board, unanimously approved the 2024 senior housing budgets, which contain the rent increase, at its June 27 meeting following a recommendation from its Management Committee and financial advisor Ehlers.

The senior housing developments are The Willows in Ham Lake, 49 units; Savannah Oaks in Ramsey, 50 units; Chauncey Barett Gardens in Centerville, 47 units; and The Oaks of Lake George in Oak Grove, 52 units

“All are 100% occupied with waiting lists,” Skepper said.

In recommending the rent increase, Jessica Cook, Ehlers’ economic development advisor, told the HRA that three of the four projects were built using revenue bonds backed by the county’s general obligation pledge, required in the event of a financial shortfall, while The Willows was financed through revenue bonds backed by the city of Ham Lake’s GO pledge.

“There has never been a shortfall,” Cook said.

According to Cook, inflation is posing a continued challenge to balancing the goals of affordable rents with financial performance for each project.

The 4% rent increase compares with the 8.7% cost of living raise in Social Security benefits received by seniors in 2023 and the 3.1% COLA jump preliminarily forecast for next year, Cook said.

“The rents are reasonable,” Skepper said.

Even with the increase, rents at three of the four projects will be between $100 and $250 less a month than the market rate average in Anoka County.

The exception is The Oaks of Lake George which will exceed the market rate average by a small amount because of high sewer and water costs.

Skepper explained that when the county HRA proposed its senior housing building in Oak Grove, it was to tie in with a city project to construct multi-family housing and a restaurant. A sewer and water system was built to serve the development, but the multi-family component changed to single-family housing resulting in higher sewer and water costs for the county.

Operating budget increases have been limited to under 5% across all properties with the biggest jump coming from salaries driven by HRA action to hire more maintenance staff to replace some of the contract services, where inflationary pressures have been greatest, Cook said.

In supporting the rent increase, Trustee Mandy Meisner said while 4% is “not nothing,” a lot of the rents will be below market rate average.

The HRA contracts with Great Lakes Management to manage the developments, which offer independent senior housing to low- and moderate-income seniors with priority given to Anoka County residents.

SOURCE: Hometown Source