DOUGLAS COUNTY, Colo. — What is supposed to be affordable housing will not be affordable any more for some tenants at the Lincoln Pointe Lofts after many of them received notices at their door about significant rent increases.
The property, which was originally financed under the Low-Income Housing Tax Credit (LIHTC) program, is home to people who use the government housing program to keep a roof over their head.
Brandi MacMillian, a tenant at the complex, said living there had allowed her to maintain a home for her and her son.
“It’s been a way that we could live a comfortable lifestyle,” MacMillian said.
However, MacMillian recently received notice that her rent will rise to $1712 per month in 2024, which is an extra $370 per month — a 27% increase.
“I mean, $50 to $100 is reasonable, but doing something where it’s like almost $400 is insane,” she said.
Another tenant, Jordan Lama, said her rent is increasing by $200 per month, nearly 13%. Lama, who has lived at Lincoln Pointe for about a decade, said the increase has left her family unable to stay in their two-bedroom unit.
“I can’t live here anymore…. It was a shock,” Lama said.
Lama’s family plans to move into a smaller, one-bedroom apartment in another complex.
“We didn’t know what to do at first,” Lama said, holding her infant son. “We decided moving is the best option for us and him.”
Both Lama and MacMillian said they have experienced rent increases at Lincoln Pointe in the past, but never anything this significant. Lama expressed frustration about the timing of the notice.
“I don’t think it was necessary, especially before the holidays,” she said.
Housing agency, property manager and the state responds
Lincoln Pointe Lofts is listed as a partner on the Douglas County Housing Partnership website. Executive Director Maria Ciano said they are looking into whether the rent hikes comply with regulations governing affordable housing.
“We have no say in terms of how the property operates, but we are a special limited partner, so we do have a relationship with this group and went right to them to let them know about the concerns,” Ciano said.
A property manager for Lincoln Pointe, Afonso Silva, said the increases are allowed under current laws and are necessary to offset rising operational costs. Silva also noted that some tenants had not seen rent increases in years.
“We're not trying to take advantage of anybody. Everything that we are doing within raising of the rents are within the law limits,” Silva said.
A spokesperson for the Colorado Housing and Finance Authority (CHFA) sent a statement to 9NEWS indicating there are new rent increase caps for LIHTC properties like Lincoln Pointe that were outlined by the Department of Housing and Urban Development earlier this year. However, there are circumstances when rent may rise beyond a 10% cap.
“In effect, this means that the maximum amount a resident may be charged may increase by no more than 10% each year. However, if a resident was previously paying rent that was below the maximum, that resident’s rent might increase by more than 10% at time of lease renewal under current program guidelines,” Matt Lynn with CHFA wrote in an email.
Lynn said the agency wants to hear from tenants at Lincoln Pointe through it’s hotline at 303-297-7442.
Tenants hope for change
MacMillian said she is hopeful the decision will be reversed, citing the stress it has caused for many residents.
“I would just like to see this turn around for people. I want people to not be in a panic,” she said. “Nobody deserves that. Nobody deserves to have their whole world shook up like that.”
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