Salt Lake housing authority calls large rent increases 'a complete breakdown of communication'

SALT LAKE CITY — The Housing Authority of Salt Lake City says it is making a number of changes after a group of tenants raised concerns about large rent hikes, poor maintenance, predatory towing and more.

Tenants across two properties partnered with the Tenants Union of Salt Lake to organize under the name Vecinos Unidos (or "united neighbors" in English). The group delivered a demand letter outlining tenants' concerns on June 30.

The Housing Authority said it has since completed a thorough review of its records, inspections and on-site visits to properties at 330 N. 800 West and 257 N. Redwood Road. Both properties are owned by the agency's nonprofit subsidiary, Housing Assistance Management Enterprise. The properties are not under government subsidy and do not have rent level restrictions; however, individuals must have relatively modest incomes to qualify to live there.

Deputy Director Britnee Dabb said of the 47 units at the two properties, 24 units received rent increase notices that were incorrect. According to emails and rental contracts that tenants shared with KSL.com, some of those increases were between 25% and 50%, and another tenant said her rent was increased by 103%.

A letter sent to tenants states that the correct rent increase is only about 4%. Tenants who already paid the incorrect amount will be refunded the amount they have paid as well as 10% interest. The correct increases still put the units well below market rate, but the letter says current tenants can expect about a 3% increase per year going forward. New tenants will pay higher rates.

The confusion over the correct increase amounts came in two parts, Dabb said. First, a previous property manager did not closely follow increase requirements, which put the units at well below market rate. Second, the current property manager based the increases on market rates for new residents rather than current ones.

Dabb said rental increase notices are reviewed by multiple senior managers, but managers didn't realize the notices were for current tenants this time around.

"It was a complete breakdown of communication on our part," Dabb said. "That is hard for anyone to have to see and deal with, and so we greatly apologize for that. That was not our intent at all for our current residents."

She added that the Housing Authority is investigating whether the oversight is isolated to the two properties but has not found evidence that similar errors took place at other properties.

Addressing other concerns

Dabb said the Housing Authority has also told the towing company that its services will only be needed upon request rather than the company showing up to the properties on its own. The manager for both properties is also being rotated out to provide a "fresh start" for tenants and the employee, Dabb said.

Tenants claimed that Spanish-speaking tenants are being charged hundreds of dollars a month more than their English-speaking counterparts in similar units. Dabb said the Housing Authority did not find evidence that differences between individuals' rents were racially driven.

She did, however, acknowledge that there is a need for more improvements and maintenance repairs at the properties. One tenant's 5-year-old son missed multiple days of school this winter after the property manager told his mother there wasn't enough money to provide a wheelchair ramp despite a prior approval for such a ramp from the the Housing Authority months earlier.

Tenants accuse Salt Lake housing authority of unfair rent hikes, poor treatment

"We are definitely committed and addressing these concerns. A lot will be completed soon, but we take our responsibility in the patterns and conditions of these — they are not to our standards, and we have taken measures to get moving on those appropriately," Dabb said.

A wheelchair ramp has been ordered and will be installed later this month, Dabb said, adding that the Housing Authority is also working on filling in large potholes, repairing a broken fence, fixing sprinklers and outdoor lighting and addressing older carpeting, among other issues.

Dabb said said the Housing Authority is working with tenants to determine what other repairs might be needed and to give refreshers on how to submit maintenance requests in both English and Spanish. Interpreters and bilingual staff will also be available to assist Spanish-speaking tenants.

"It sounds like in the past there might have been bad practices. We're not able to see that because it's not documented in our records that that happened, but we're not saying it didn't," she said. "So we want to take the necessary steps to make sure that everyone understands how to do it. ... We want to make sure that our focus is on providing a community-focused environment, rather than being just focused on our profit as a real estate company."

Devin Martinez, of the Tenants Union of Salt Lake, said tenants are meeting next week to determine their next steps. He declined to say anything else until tenants have met together.

Diana Diaz, whose family has lived in their apartment for over 20 years, said the Housing Authority's changes are a step in the right direction.

"But actions speak louder than words, so we just have to wait and see if they do everything they say they want to do and what they are promising," Diaz said.

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