Justify rent hikes, UBP tells Govt.
The Opposition challenged Government to justify allowing Bermuda Housing Trust to double rents after revealing it had $2 million in the bank in 1997.
United Bermuda Party MP said under the old rents the BHT picked up $400,000 a year and with the increase this had gone up to $650,000.
Government say the rent hikes are needed to pay for repairs but Mr. Barritt said there was no evidence of any substantial work.
Housing Minister Ashfield DeVent also indicated the money was needed to fund a new seniors development at Rockaway, Southampton.
But Mr. Barritt said: "That was not what the Trust was set up to do. It was to help the needy."
He said money for the four properties ? Ferguson Park, Elizabeth Hills, Purvis Park, and Hayden Trust ? had been raised by charitable donations and the rent had been kept at a low level.
He chided Mr DeVent for being able to find board minutes from 1995 saying that former Bermuda Housing Corporation general manager Ed Cowen had recommended BHT raise rents at the properties to market price but had not been able to bring up to date financial figures.
He said seniors at the homes were used to modest increases but were being faced with rises completely out of line with inflation.
Mr. DeVent said the apartments were not maintained under the UBP. "They were left to fall apart."
Shadow Housing spokesman said there should have been up to $6 million in the kitty given the money raised annually on rent. Even taking off the price of Ferguson Park which was built more recently he said the Trust should still have millions in the bank.
And he said even if the BHC manager had tried to introduce market rents under the UBP watch the idea was stopped.
"The minister at the end of the day said no."
He said if Government was concerned about maintenance it should get Works and Engineering staff to do it.
"A couple of months ago they were saying they didn't have enough work to do.
"Send them to help our seniors if that is what they are concerned about."
However Mr. DeVent said some seniors had been surprised their rent hadn't risen before.
"Just as some young people want to play the system and get something for nothing yes we have some older people living in these places where if you look at the letter of the law or the intention they should not be there.
"Some of these people own there own homes."
