Letter Stirs Up Housing Authority; Flat Rent To Go Up

Last week, the residents in the Hoboken Housing Authority who pay "flat rent" received a letter stating that rent would go up starting Sept. 1, 2010. 

But, the notice and the way it was written, had some worried they were being evicted from their apartments. The notice was riddled with legal jargon and sent to the residents by HHA Board Attorney Charlie Daglian. 

Most HHA residents' rent is 30 percent of their income. Flat rent, a measure that is optional, caps that number at a flat rate, for those whose incomes might have gone up, and prefer to pay less than 30 percent.

"Please take notice that on September 1, 2010, you are to quit and vacate the premises now occupied by you as a tenant," the July 21 letter stated. "And demand is hereby made that you deliver up the peaceable possession thereof to me on that date, as of which date your present tenancy is hereby terminated."

The letter continued to read that if the resident wanted to stay in their apartment, they have to pay the new rent starting Sept. 1, 2010. 

"When I saw this, I thought I was being evicted," said one 49-year-old resident, who wished to remain anonymous. "Everybody is upset with this letter."

"Nobody's being kicked out," said Housing Authority Commissioner Jake Stuiver, the letter is simply a notification of the flat rent increase. But, he said, the HHA commissioners should have explained that better to the residents. 

The decision to increase the flat rent, Housing Authority officials said, came after an annual audit by the Department of Housing and Development. The topic was first brought up at the HHA meeting in June, and approved by the board during the July meeting.

Executive Director of the HHA Carmelo Garcia said the audit found that the HHA has been under-collecting flat rent. Flat rent has not gone up since 2006. The new flat rent rate has been decided by the finance committee of the HHA Board.

Marianne Camporeale, the HHA's newest commissioner, said that the "scary letter" was written in "lawyer terms." Camporeale, 76, lives in Fox Hill Gardens and said she found—and calmed down— an 82-year-old woman in tears after reading the letter. "It should have had a cover letter," Camporeale said. 

HHA Executive Director Carmelo Garcia said on Wednesday evening that he mailed a letter explaining the change to the residents. 

Out of the 1350 families that live in the HHA, roughly 170 are paying flat rent, Garcia said. Garcia said that he did not know the lawyer's letter would read the way it did. 

The flat rent will be increased incrementally over the next coming years, said Garcia. As of Sept. 1, a one bedroom in the HHA will cost $800 a month (up from $675), a two-bedroom will cost $850 (up from $725), a three-bedroom will cost $900 (up from $780), a four-bedroom $950 (up from $835) and a five-bedroom will be $1,000 (up from $875).

The flat rent will increase with $100 in 2011 and 2012, said Garcia. The director added that these prices are still below the market rate in Hudson County. 

Garcia gave an example of some families whose incomes have gone up while living in the Housing Authority (he cited one example of a family in a two-bedroom that makes $90,000 annually), but are only paying about 15 percent of their incomes, while most people in the HHA are paying 30 percent. 

Garcia said also that the flat rent increase can start on Sept. 1, regardless of what date a resident's lease is up, because the flat rent contract overrides the lease agreement. 

The residents are mostly upset with the lack of explanation from HHA officials. 

"I don't mind paying the $900," said the 49-year-old resident, who has been living in the HHA for 25 years. "But, it's the way they write the letter."