Agenda Date: 04/18/2017
Subject:
Title
A resolution to increase the rental rates when vacancies occur at Geneva Village
Body
Presented By:
Mayor Pro Tem Brinkman and Council Member Cernanec
POLICY QUESTION:
Does city council support increasing the rental rates for units at Geneva Village when 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 or managed by SMHO 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 market rents for the area; subsidized by the city. The table below shows current rents at Geneva Village and contrasts those with fair market rental rates as of September, 2016. The rents at Geneva Village have not increased for 38 years, since 1979.
Bedroom Size
Number of Units
Current Geneva Village Rents
2017 Fair Market Rents
(per SMHO)
Studio
10
$300
$844
1 Bdrm
10
$390
$1,031
2 Bdrm|1010|$450
$1,305
Average market rent for properties constructed
1960-69 in Littleton (Sept. 2016)
$950
The management agreement signed in 1975 with SMHO, allows it to invoice the city monthly for a ten percent management fee....
Click here for full text