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Pensionerswin rent reduction

Thirty-one tenants who took their landlord ? the Bermuda Housing Trust (BHT) ? to court this month have succeeded in getting reduced rents for 13 months.

However, the question remained yesterday whether the reduction will be given to around 50 other pensioners who currently rent from BHT.

After an out-of-court settlement, tenants from four housing areas ? Heydon Park in Somerset, Elizabeth Hills in Pembroke, Purvis Park in Devonshire and Furguson Park in St. David?s ? have received rent reductions.

BHT was established under an Act of Parliament in 1965 with the mandate of providing accommodation for Bermuda?s seniors for prices well below the market value.

The Trustees are appointed by the Housing Minister but operate independently from Government in the main ? although BHT does pay a sizeable fee to the Bermuda Housing Corporation for a number of property services including property management.

Three residents from Heydon, six from Elizabeth Hills, ten from Purvis Park and 12 from Ferguson Park were present at the rent appeal in Magistrates? Court on December 6.

Before October, 2004 when Rent Commissioner Eugene Foley approved a rent increase to $650 from January 1, 2005, Heydon Park residents paid a rent of $360 per month ? an increase of $290.

Elizabeth Hills saw similar increases from $250 per month to $550 (a $300 increase), Purvis Park from $305 to $650 (a $345 increase) and Ferguson Park from $650 to $800 (a $150 increase).

The Rent Commissioner justified the rent increases saying homes similar to those in Heydon, Purvis and Ferguson would rent from $1,000 to $1,400 per month and homes similar to those at Elizabeth Hills would rent from $700 to $1,000 per month.

Represented by lawyer and Opposition House Leader John Barritt, an out-of-court settlement was reached that gave 13 tenants a $100 per month rent reduction for 13 months.

For Heydon Park and Purvis Park, BHT agreed to decrease the rents to $550 from December 1, 2005 through to January 1, 2007.

Elizabeth Hills get a $50 per month reduction for 13 month and Ferguson Park a $75 reduction.

However, anyone who was not up to date with their rent payments had to settle their accounts before they could get a decrease.

There was no order as to legal costs.

And after January 1, 2007, the Rent Commissioner?s approved rent increases will come into effect.

When contacted yesterday, Mr. Barritt said there were mixed feelings from the tenants about accepting the offer.

?Each of the applicants fell differently about it but there was a clear consensus to accept the offer,? Mr. Barritt said. ?Naturally there is some disappointment that we did not get a greater reduction for a longer period of time, because that was one of their complaints, it was the suddenness and the big jump.

?They thought it ought to have been phased in over a longer period of time because most of them are on fixed incomes ? their pensions.

However, Mr. Barritt also thought people were pleased about the reduction because it was a recognition that the rents had increased ?too much, too quickly?.

?I think they are pleased to have some respite even if it is only temporary,? he said. ?I also think some of them can claim some measure of victory for standing up.?

He said it had not been easy for the 31 tenants who appealed the Rent Commissioner?s decision.

?Some of them in their 70s and 80s,? he said. ?The stress of this for them was a factor for them as well in their decision.

?They have been told the extra rent is needed to bring the places up to a higher standard and to provide the services BHT and the Bermuda Housing Corporation would like to provide and I think they look forward to seeing a higher standard both in service and in renovation and repair.?