Affordable housing company to raise rent, just as Orange County shoots down rent freeze

A Central Florida affordable housing company that faced pushback for trying to raise rent in the midst of the coronavirus outbreak is again moving forward with increases, at the same time that Orange County commissioners shot down a proposal to freeze rent for the next year to offer some relief to residents upended by the virus’ economic impacts.

Concord Rents, a Maitland-based company that oversees low-income properties across the state, including several owned by the Winter-Park based Atlantic Housing Partner, issued a letter on June 15 informing tenants that it would be enforcing the rent increase it had previously rescinded in April. The increase, which varies depending on tenants’ incomes, kicks in July 1.

State Rep. Anna Eskamani, D-Orlando, who in April pressured Concord Rents to rescind the rent hike, said the situation illustrates the disconnect between Orange County officials who opposed the rent freeze and tenants who are seeing their rents go up during the health emergency.

“As the county’s having conversations about addressing the increase of rent and addressing the pain that hundreds of thousands of families are facing in our county alone, you have a very large affordable housing complex of a huge portfolio about to increase rent. It doesn’t even make sense,” she said. “ … You say it’s not a real problem when it’s happening now right in front of you.”

Rent freeze proposal rejected

County Commissioner Emily Bonilla, who proposed the initiative, had urged the board to move forward with a public hearing to discuss a possible rent freeze at the next commission meeting. If approved by commissioners then, a referendum suspending rent increases for a year would have been placed on the November ballot.

To avoid hurting mom-and-pop landlords, Bonilla suggested limiting the freeze only to properties that had at least three rental units.

At Tuesday’s meeting, commissioners voted 5-2 against holding a public hearing and killing the idea, with only Bonilla and Maribel Gómez Cordero voting in support. The dissenting commissioners, which included Mayor Jerry Demings, said they were concerned with the legality of the proposal and worried that fixing rents could drive down the supply of affordable homes.

“I do believe what is being asked of the board at this point is something that we’re all passionate about, that is, making certain that the least of those in our society are taken care of,‘' Demings said. But, he added, “I don’t ever want to rush something to the ballot.”

Bonilla said a freeze was justified under state statute that allows rent stabilization “when local governments identify a housing emergency so grave that constitutes a serious menace to the general public.”

“I mean, if a worldwide pandemic isn’t enough to say we’re in an emergency, a housing emergency, then I don’t know what is,” Bonilla said.

In Orange County, there were 223,433 rental households in 2019, according to the University of Florida’s Shimberg Center, about 30% of them considered rent-burdened, meaning tenants spend at least a third of their income on housing. Median rent in Orange was $1,160 in 2018, according to the most recent U.S. Census data available.

More than a dozen rental property owners opposed to Bonilla’s proposal said a rent freeze was unnecessary because many landlords have been sympathetic to tenants who have lost their jobs because of the virus and already deferred monthly payments, waived late fees and increases, and accepted partial payments.

“The desire of the commissioner to provide support to affected renters is certainly to be commended, although this approach is inappropriate and unfair to those of us who depend on rental income,” said Louis Nimkoff, a founding partner of Brio Properties, a Winter Park-based brokerage company.

The Orlando Regional Realtors Association and the Apartment Association of Greater Orlando also spoke against the proposal.

“The industry has already stepped up and our members are clearly trying to work with our residents,” AAGO CEO Chip Tatum said. “We think the commission made the right choice.”

Increases at Concord Rents properties

In an emailed statement, Concord Rents defended its decision to raise rents, a move that is allowed because of updated income limits released by the U.S. Department of Housing and Urban Development earlier this year. They said it was necessary to offset “significant increases to our operating expenses,” including increasing property taxes.

Properties operated by Concord Rents are largely funded by Low-Income Housing Tax Credits, which provide tax incentives to developers who build or rehabilitate affordable housing. So when HUD came out on April 1 with higher income limits for the Orlando-Kissimmee-Sanford area -- figures the department sets yearly based on changes to the area’s median income -- that opened the door for Central Florida properties to increase rent.

The company is offering financial assistance to residents who can prove “a documented financial hardship due to COVID-19.”

Andrew Aurand, vice president for research with the National Low Income Housing Coalition, in a previous interview said the situation highlighted one of the weaknesses of the tax credit program, “that rents are set by the area median income, rather than being set by the low-income renters’ income.”

Eskamani also questioned tying rents to a now outdated formula that doesn’t reflect how severely the pandemic has devastated some residents. Orange, for example, has been overwhelmed by thousands of applications for its rental assistance programs.

When Concord initially tried to raise rents in April -- a move that “surprised” even HUD, which called the move “so out of step with the moment in which we are living” -- the Florida Housing Finance Corporation that administers funding for affordable housing warned that companies that raised rent during the health crisis could lose out on future funding.

To contact Stephen Hudak, email shudak@orlandosentinel.com. To contact Caroline Glenn, email cglenn@orlandosentinel.com

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