Log In

Reset Password

DeVent backs rent hikes for seniors

Housing Minister Ashfield DeVent yesterday backed a decision by Bermuda Housing Trust to increase rents paid for its properties.

And, in a press statement, the Minister refuted criticism that the BHT and the Bermuda Housing Corporation were guilty of mismanagement.

?It should be understood that the Housing Corporation acts as a management company for the Housing Trust and any decision to increase rents are the sole responsibility of the Housing Trust,? Mr. DeVent said in the statement.

?Even though the two bodies are distinct and separate, we supported the increase after we had conducted an analysis of the escalating cost of maintaining those properties and the residents? ability to pay. The increases are now being reviewed by the Rent Commissioner.

?It was unreasonable for either body to be blamed for mismanagement when our joint goal is to provide housing for as many needy seniors as we can.?

He added that BHT properties were considered the most ?desirable and affordable accommodations? for independent living for seniors and there was always a long waiting list.

?Since taking over as the management company in 1995, the BHC has endeavoured to maintain the high standards by making resources available for systematic maintenance and upkeep.?

The 82 BHT properties had an average rent of $400, and at least one quarter of the seniors could afford the proposed increases, the Minister continued ? repeating BHT chairman Ronald Simmons? justification for the rent hikes.

?Year after year the Trust incurs heavy losses for repairs and maintenance. It costs $305 a month per unit just for maintenance and upkeep of the grounds,? Mr. DeVent?s statement continues.

?This does not include insurance, management fees, accounting, audit, other professional fees or administrative costs. These units should be self-sufficient. The Trust has a mandate to generate enough income from the homes and from other sources to build more homes to house more seniors. With current costs they have not been able to do this. In addition, in past years, the Trust benefited from generous donations and bequests.?

He said most seniors did not object when the increases were proposed.

?Those residents who require help with their rent will be referred to the Government financial assistance programme or other agencies for subsidies,? he continued.

?The joint goal of the BHC and the Trust is to house as many seniors as we can in affordable, well-maintained homes. If we can increase the number of units from 82 to over 100, we will be able to make a significant impact on Bermuda?s housing needs for seniors.?

The 82 Trust units are located in Purvis Park, Devonshire, Elizabeth Hills in Pembroke, Heydon Park in Somerset and Ferguson Park at Southside, St. David?s.