With nearly 120 elderly Malden residents facing a federally approved 20 to 25 percent rent increase tomorrow, social service agencies and politicians were mounting a concerted effort last week to provide some relief to the tenants, most of whom are on fixed incomes.
In August, federal regulators allowed the owners of The Heritage, a 208-unit apartment building on Pleasant Street, to increase rents for most tenants by as much as 25 percent and to impose additional, smaller increases on Feb. 1. The decision allowed possible further increases in June.
Tenants say the increases pose a severe hardship.
``Terrible," said Fran Garvey, a recent cancer survivor and a resident of The Heritage for five years.
Under the plan, the rent for her studio apartment was to rise by $82 a month today, from $331 to $413. Garvey said she lives on the combined $900 she receives each month from Social Security and her pension.
``What am I going to do?" she said. ``I can't depend on my daughter; she can't support me. And I'm not working. I'm 81 years old. Am I supposed to work? You are supposed to be able to enjoy what life you have left."
In an Aug. 30 letter to the building owners, First Church in Malden Homes Inc., officials from the US Department of Housing and Urban Development said they had determined that the rent increases were needed to meet operating expenses of the 35-year-old building. The owners noted in particular the rise in their utility costs.
First Church is a nonprofit launched by members of First Congregational Church of Malden to develop the low-income building, constructed in 1971. It is not affiliated with the church.
HUD has the power to approve rents because it is the guarantor of mortgages for the project and because it provides owners with a mortgage interest subsidy.
Tenants and their advocates were able to work with management to arrive at a common strategy last week for bringing relief to the tenants facing the rent hikes. The two sides met Sept. 21 and again Tuesday.
Doreen Bushashia -- director of resident services for the management company, Braintree-based Peabody Properties -- said the first meeting was ``very, very helpful in terms of bringing the residents and their advocates, as well as the management and ownership entities, together."
``We found we have a lot of common ground," she said.
At Tuesday's meeting, it was agreed that Peabody Properties would ask First Church's board of directors to seek HUD approval to delay the rent increases by a month, according to Claire Murray, community organizer for the Local Action Committee, which advocates for affordable housing in Malden. That effort was ongoing at press time.
Murray said city leaders were being asked to consider providing financial assistance to the owners to offset revenue lost in the delay in the rent hike.
She said it was also agreed that management, tenants, and advocates would join to ask HUD to issue ``enhanced vouchers" to existing tenants, which would largely freeze their rents while providing the building with the additional revenue the owners say is needed to operate the complex.
The pending rent increases affect tenants living in units that are part of the federal housing subsidy program known as Section 236. That group includes all but 20 of the building's 208 units; 70 are currently vacant. With enhanced vouchers, those tenants would continue to pay their current rent, or 30 percent of their monthly income, whichever was higher. HUD would pay the remainder of the rent. Currently, it provides a subsidy of $80 per apartment. New tenants would pay the future rents in full.
Kristine Foye, a spokeswoman for HUD's New England regional office, said the agency would review any proposal to delay the rent increase.
But she added that the increase had been approved ``because the property really needed the money to meet its operating costs" and that the rent hike was to be implemented in stages ``to minimize the impact on residents."
Foye said that HUD had just sent a letter to the owners of The Heritage responding to their request for enhanced vouchers, a request that was pending prior to last week's tenant-management meeting.
While declining to comment on the letter, Foye said that HUD's position is that nonprofits are not eligible for enhanced vouchers.
Murray said that ownership has proposed transferring the property to a for-profit, ``limited dividend entity" whose sole stockholder would be First Church in Malden Homes Inc. She said the owners and tenants contend that the transfer would make the property eligible for enhanced vouchers.
In addition to the Local Action Committee, the senior tenants are seeking help from the Massachusetts Senior Action Council; US Representative Edward J. Markey, Democrat of Malden; state legislators; and city officials, according to Murray, who was hired by Tri-City Community Action Program, an antipoverty agency, to work on the matter with the Local Action Committee.
``Our hope is to put pressure on HUD to do the right thing for the tenants," Murray said.
She added that the rent increases put many of the tenants in a financial bind.
``These are people who moved into this building thinking it was the last place they were going to live, that they'd live out their lives here," Murray said.
``There is no place for them to go," she said, citing the long wait for placement in municipal housing complexes for seniors.
In addition to being low-income, many of the seniors are not in good health, Murray said. ``They are the most fragile part of our society."
Patricia Worthley, 93, has lived in The Heritage for 16 years. Like Garvey, she faces an $82 increase today on her studio apartment.
``Right now, I could pay it," she said. ``But what happens later on? Who
is going to take care of me?" 
October 2006
Local Action Committee
AFFORDABLE HOUSING OVERSIGHT PROPOSAL
Affordable Housing in Malden:
An Overview of the Current System
On 1 April 2002, the Malden Ordinance Committee and Planning Committee convened a joint public meeting relative to a proposed Affordable Housing Ordinance submitted by City Councilors Gately and Sheehan. Approximately 200 Malden residents voiced their concern over the growing lack of affordable housing for working families in Malden and their strong support for the proposed ordinance. The Mayor’s Office, the Malden Redevelopment Authority (MRA), and some City Councilors countered by extolling Malden’s record on affordable housing and describing their role in helping to create hundreds of affordable rental and homeownership units throughout the City. Affordable housing advocates and community supporters and City officials each captured a part of the housing picture in Malden. The Advocates rightly contend that low and moderate income families feel increasing pressure to find less expensive housing elsewhere, that increasing numbers of families are facing eviction for non-payment of rent, and that the creation of affordable housing stock is not rising on pace to meet the demand. City officials correctly point out that Malden has aggressively developed affordable housing, one of only 27 Massachusetts’ communities to meet the 10% affordable housing target established by Massachusetts GL Chapter 40b.
With this document the Local Action Committee aims to move the discussion beyond the question of the specific number of affordable units on record, and toward a closer examination of the current affordable housing inventory. Reforming deficiencies in the system, as it now exists, will increase the number of units available to Malden residents in need. In community meetings and discussions held during the prior year we have identified several key areas that need to be addressed:
Centralized Oversight and Responsibility:
The City lacks a concerted, focused approach to resolve its affordable housing crunch and to properly monitor and publicize its affordable housing programs and units. Responsibility for a diverse array of affordable housing programs is distributed over several City agencies with little coordination or integration. Oversight of affordable units is also decentralized. Little or no accountability, or transparency, is built into the existing system. An absence of centralized oversight and responsibility also makes it difficult to see the whole picture. No one is responsible for identifying the most pressing holes in the City’s housing stock, for developing proposals to fill these holes, or for coordinating the City’s housing programs and resources so as to maximize their effectiveness and benefit.
Money earmarked for affordable housing also suffers from this lack of oversight. The Affordable Housing Trust Fund is being used as a depository for developers’ fees while no mechanism has been publicly put in place to receive the funds, decide the use of funds, monitor the use of funds, ensure the affordability of units created, and verify that only intended income-eligible owners and renters are assisted.
Monitoring and Enforcement
Units developed with public funds are often not monitored as required by public funding sources. Some units, that have affordability and/or family composition requirements, receive little supervision. Turnover in many restricted units is not currently tracked or monitored. As a result new tenants are not routinely screened for eligibility prior to occupancy. Restrictions on rent and occupancy are not enforced. Under the current system, some homeowners are not aware that they must find eligible tenants or buyers, or are not assisted in finding them in a timely fashion. Without a well-reasoned and conscientiously implemented system to monitor and enforce mandated income eligibility, rent and occupancy restrictions, units that carry affordability restrictions on paper have, in fact, disappeared from the affordable housing stock.
Units that carry affordability and/or family composition restrictions result from a variety of programs and are scattered throughout the City. They include: de-leaded units created under a Malden Redevelopment Authority (MRA) program, properties assisted with City Community Development Block Grant (CDBG) funds, developments assisted by North Suburban Consortium HOME funds, Dept. of Energy weatherization units, and HUD- developed projects from a variety of sources, e.g., 202, McKinney-Vento, or Section 8 project-based programs.
Development
The City has no master plan to create affordable housing units. Rather, the City relies on a series of meetings (private and public) to extract concessions from prospective developers, i.e., contributions to park programs, Little Leagues, charities, a small number of affordable units or contributions to the Housing Trust Fund, in exchange for City permitting approvals. Lack of a systematic plan has produced uneven results, with some affordable housing needs well met and others falling through the cracks.
Accessibility
No centralized list or registry of affordable units exists for use by Malden residents. Those wishing to avail themselves of affordable housing must seek units on their own. It is up to prospective tenants or owners of affordable units to discover the programs and restrictions that have accrued or attached to various housing units throughout the City. Matching of eligible tenants with restricted and available units is hampered because no waiting lists of eligible tenants exist for some of the affordable units generated by the programs listed above. This may lead to unfairness in the way units are made available and even to charges of discrimination. An equitable process is necessary so that everyone has an equal opportunity to obtain affordable housing.
Publicity
No group is charged with the responsibility of making the public aware of housing choices offered in the community by dint of the public resources and concessions made by the City, State and Federal governments. There should be a single place where a Malden resident could go to learn about specialized housing, public housing, senior housing, de-leaded units, disabled housing, project-based Section 8 housing, rooming houses and SROs.
A central location would also serve to educate landlords about what is expected of them and to assist them with filling vacancies. Landlords would have an easily accessible source of information to assist them with complying with regulations and requirements of the housing programs listed above.
Categories of Affordable Housing and their Regulatory Status
The units in the City’s affordable housing stock take many forms and are subject to a mix of income eligibility, family composition and maximum rent/resale restrictions. This diversity is largely a result of changes in the design of Federal and State subsidy and grant programs over time. Different program designs have created units that suffer, in varying degree, from the problems listed in Section I.
Between the 1960’s and the 1980’s Malden took advantage of deep subsidy programs that funded the construction of affordable housing projects and developments. Because the creation of large-scale affordable housing developments was the central goal of these projects, fairly strong and specific oversight mechanisms are in place and a permanent staff is charged with administration and monitoring. These programs were phased out in 1980s and are no longer creating the same magnitude of new affordable units. Malden faces a potential large and catastrophic loss of affordable units in expiring-use properties such as Bryant Terrace. The City needs to remain vigilant and do all that is humanly possible to preserve the highest number possible of affordable units in these projects built in the 1970s and 1980s.
In the past two decades, shallow state and federal subsidy programs have replaced the deep subsidy programs described above. These shallow subsidy programs use market incentives, e.g., below-market interest rates and grants, to marshal the resources of the private housing stock so as to create affordable units in private homes scattered throughout the community. The programs are designed to achieve two objectives. They provide financial assistance to a homeowner for some type of home improvement. The homeowner, in theory, then passes the benefit down to tenants (who must be income- eligible), by agreeing not to exceed a maximum rent for an established period of time.
These programs have relatively less Federal or State oversight. The affordable housing component of a program is often given short shrift, because the city agencies charged with program oversight have other priorities and/or a conflicting agenda. Although program design may require the placement of restrictions in legal documents such as mortgages or covenants, these restrictions are of little use without aggressive monitoring of units, coupled with education of homeowners and tenants. The City’s low to moderate income residents are entitled, by program mandate, to a fair selection of candidates for these programs and the proper monitoring of the resulting rental units. Improper program administration is particularly damaging because these units make up a significant proportion of the affordable units now being created and because the affordability restrictions are of relatively short duration.
Another category of affordable housing needing oversight is the restricted units created voluntarily by developers through negotiations with Ward Councilors, the MRA, the Mayor, or other officials and boards. Oversight and public notice are glaringly absent from this category as it is highly unlikely that a small developer who has offered -- without legal provisions or requirements -- to set aside a percentage of units as affordable housing, would take the initiative to think through and implement a well-designed and fair system of allocating and maintaining the affordable units.
Assuring Affordable Housing Units for Current and Future Generations
Many Malden residents, along with members of the Local Action Committee, continue to seek the creation of new affordable units in large developments proposed and being built in Malden. Just as important, concerned citizens are equally determined to ensure that past investments in affordable housing are not lost. The City of Malden must take steps to make certain that full and fair use is made of the restricted affordable units already in the system.
Members of the Local Action Committee have developed a set of policy sketches and program initiatives to address the issues discussed above.
Audit the City’s Affordable Housing Stock
The Local Action Committee has begun compiling an inventory of restricted rental and homeownership units. We are conducting searches in the Registry of Deeds for affordability restrictions, and are looking into various program requirements. We will need the assistance of the MRA and the MHA. We will also review City Council and City Council Committee notes to identify the developments where affordable units have been independently negotiated, and will track the allocation of these units. The audit will determine the extent to which program restrictions are being complied with and pinpoint, more specifically, deficiencies in the existing system.
Create an Independent Affordable Housing Oversight Committee:
The Committee will:
(a) Create a Central Registry of Affordable Units
Based upon the initial audit, this registry will identify each unit’s basic property characteristics and all restrictions to which it is subject. This registry will prove an invaluable aid in both the monitoring of units and in the matching of income eligible renters/buyers with available restricted units. It will also be an important community resource and planning tool that clearly and accurately shows the number of affordable units in the city, the term of affordability restrictions, eligible occupants for the units, etc. The registry should, to the greatest extent allowed by law, be accessible by the public.
(b) Establish a Central Location or Clearinghouse to Connect Property
Owners with Interested Income Eligible Renters or Buyers.
The clearinghouse will be a physical location where a person seeking affordable housing can access the central registry or be placed on a waiting list, from which a homeowner or developer can draw. It will be a location where both homeowners and tenants can get written information about all City programs with an affordable housing component. Possible locations for the Clearinghouse include City Hall, the Malden Housing Authority, or Tri-City Community Action Program, Inc
Monitor compliance with affordability restrictions
Establish a procedure, and the needed forms, for monitoring those units that presently suffer from limited oversight. Units must be monitored at turnover and done so efficiently so as to avoid any prejudice to landlords or prospective tenants. Affordability restrictions should be made clear to the homeowner, and must be enforced. Tenants should also be informed of program objectives and requirements.
The Malden Housing Authority, which already has waiting lists and written procedures and policies for filling vacant units, would continue to monitor the units for which it is now responsible. Additionally, both the Commonwealth’s Department of Housing and Community Development and the U.S. Department of Housing and Urban Development, carefully monitor the implementation of the MHA’s policies and practices. The MHA units would, however, be listed with the other units in the integrated registry, and the MHA and the Clearinghouse would provide cross-referral.
(d) Develop a Set of Standard Contracts and/or Legal Documents
Affordable units set aside by developers require well thought out legal documents -- e.g., covenants in mortgages and Purchase and Sale Agreements -- to ensure long term affordability and proper selection of qualified future owners. Standard language may also be beneficial in Mortgages placed on properties with short-term affordability restrictions. In addition to the legal language in these agreements, which may not be read or understood by homeowners, it may be advantageous to have simple agreements signed by both the homeowner and tenant beneficiaries of the program.
Oversee Housing Trust Fund Contributions, the Disbursement of Funds, etc.
The City has publicly solicited funds for the Affordable Housing Trust Fund. The City must now establish a legal entity to receive those funds, determine governance of the Fund, determine guidelines and qualifications of those seeking to use monies from the Trust Fund, etc. The Local Action Committee believes that a public hearing should be held to receive public comment regarding the establishment, oversight and monitoring of the Housing Trust Fund.
(f) Assist the City in Developing a Comprehensive Affordable Housing Plan
The City has long benefited from State and Federal programs to develop a comprehensive program of affordable housing for families, elders, handicapped persons and special needs housing. The City needs a comprehensive planning process and responsible oversight Committee to make certain that the City continues to be aggressive in pursuing all available funding both for maintenance of existing units and for the development of new units. A comprehensive plan can also be used as an educational and planning tool in overcoming resistance to the siting of particular types of housing in the City. The plan could also identify areas of housing need, or underserved populations, that the City could identify and seek to have developed.
The Oversight Committee would be charged with monitoring "expiring use" properties so that the City’s stock of affordable units is not seriously depleted. The Oversight Committee would be in a position to make certain that owners of these large development are aware of State and Federal resources that can assist with maintaining long-term affordability
Committee Composition and Membership:
The Oversight Committee, as we envision it, will be composed of (1) members of both community-based and faith-based organizations who work directly and closely with the target population (low and moderate income residents of Malden), (2) community groups and government agencies concerned with the provision of affordable housing, (3) City Council and Mayoral representatives. At no time can municipal employees and mayoral appointees make up more than one-third of the Committee. A nine member Committee should consist of the following individuals to be named by their groups or Offices: a representative from the City Council, a representative from the Mayor’s Office or the Malden Redevelopment Authority, a representative from Tri-City Community Action Program Inc., a representative from the Malden Housing Authority, a Local Action Committee Member, a leader of a local religious institution, a representative from Bread of Life, a representative from Mystic Valley Elder Services or the local Mass. Senior Action Council and, a representative from a community based group serving local immigrants.
This group of people, collectively, will bring the knowledge and dedication needed to formulate and implement policies to ensure that affordable housing units in Malden receive the effective and responsible oversight that is currently lacking. This group will also be uniquely situated to conduct public outreach and education so that those needing housing will be matched with available units.
Funding:
The Oversight Committee, and the projects it will be implementing, could be funded by one or more of the following: a tax on all development, commercial or real estate, a linkage fee, part of the money set aside for administrative costs in the housing programs themselves, or as a service provided under the Malden Housing Authority.
The Committee will oversee a staff to implement the above and will report annually (a written report) to the City Council.
Other:
The City will need to develop an Ordinance to give the Oversight Committee the necessary powers, authority, and funding to carry out its mission.