Agenda Date: 02/14/2017
Subject:
Title
Discussion of the physical needs assessment report and vacancies/rent at Geneva Village Apartments
Body
Presented By:
Mike Braaten, Deputy City Manager
PURPOSE: Overview of property issues and recent needs assessment findings. Staff requests council guidance on rents as vacancies occur.
BACKGROUND:
Geneva Village is a 28-unit housing complex that has been owned by the city since 1975. The complex consists of studio, one-bedroom, and two-bedroom rental units for residents who are 55 years of age or older. The city contracts with South Metro Housing Options (SMHO) to manage the property, including screening applicants, maintaining a waiting list, turning over vacant units and re-leasing them, and ongoing general maintenance. The city manages the grounds and coordinates with SMHO on major improvements to the property.
Tenants are not "income-qualified" to be eligible to rent at Geneva Village. The only criteria that tenants must meet are 1) pass the screening criteria; and 2) be 55 years of age or older. By contrast, all tenants at other properties owned/managed by SHMO must qualify based on a percentage of area median income.
There is a wait list of 148 applicants for Geneva Village. There is little turnover, however, there is currently one vacant unit.
The rents at Geneva Village are significantly lower than fair market rents for the area; subsidized by the city. The table below shows current rents at Geneva Village and contrasts those rents at what was considered market rents in September, 2016. According to city records the rents at Geneva Village have not increased for 38 years, since 1979.
Bedroom Size
Number of Units
Current Geneva Village Rents
Market Rent (Sept. '16) for Littleton properties
Studio
10
$300
$990
1 Bdrm
10
$390
$1,147
2 Bdrm|1010|$450
$1,245
Average market rent for properties constructed
1960-69 in Littleton
$950
The property currently generates $126,000 per year at full occupancy...
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