November 28, 2023
City Council
DATE: November 28, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Melvin Willis, Councilmember
Cesar Zepeda, Councilmember
Subject:
Letter requesting that Heritage Park at Hilltop not move forward with its current December 1, 2023, rent increase and to reevaluate rent increases in the future.
FINANCIAL IMPACT: There is no financial impact with this item
PREVIOUS COUNCIL
ACTION:
None
STATEMENT OF THE
ISSUE:
On December 1, 2023, residents of Heritage Park will
receive a 5% rent increase. The City Council is
requesting that the City send a letter to Heritage Park and USA Multifamily Property Fund Inc. expressing
concern about the 5% increase and future rent increases.
In addition, this item is requesting that City staff
coordinate with Rent Program staff to develop strategies to assist with housing for seniors.
RECOMMENDED ACTION:
APPROVE a letter to Heritage Park at Hilltop Apartments requesting that it not move forward with its current rent increase and to reevaluate future rent increases and
DIRECT staff to work with the Rent Program staff to
develop strategies to assist with housing for seniors - Councilmembers Melvin Willis (510) 412-2050) and
Cesar Zepeda (510) 620-6593.
AGENDA
REPORT
November 28, 2023
DISCUSSION:
Residents of Heritage Park at Hilltop have testified during public comment at Richmond City Council meetings about a 5% rent increase that will take effect on December 1, 2023. Residents are also concerned about future rent increases after communicating with Heritage Park Management about this year's rent increase.
Concerns raised at our City Council meeting include:
Seniors at Heritage Park are a vulnerable population on fixed incomes who are impacted by inflation.
The cost of housing, food, transportation, medicine, utilities, and other necessities impact their monthly income. The 5% rent increase will force them to sacrifice other needs to keep up with their housing cost.
Future rent increases will price residents out of their current housing, and they will eventually become homeless as a result.
Contra Costa County 2023 Point in Time Count reported a 29% increase in homelessness in West Contra Costa County between 2020 to 2023. Most of the population was identified in the City of Richmond. Richmond has spent millions on homeless support services and relocation costs to address the increase in the population, and we still have more work to do.
In 2022, Richmond voters passed Measure P with 58% of the vote. The measure caps rent increases at 3% on rent control units. The measure was placed on the 2022 ballot due to concerns about the higher cost of living and to prevent residents from being priced out of their units.
Based on the concerns raised by residents, and the City's goal to prevent homelessness and to build sustainable communities, the City of Richmond is requesting Heritage Park to not move forward with its current rent increase and future increases.
With the City Council’s approval, the letter (Attachment 1) will be sent before December 1 to Heritage Park and USA Multifamily Property Fund.
In addition, Council is requesting that City staff work with the Rent Program staff to develop strategies to assist with housing for seniors at Heritage Park and other senior housing throughout Richmond.
DOCUMENTS ATTACHED:
Attachment 1 – Letter to Heritage Park
Attachment 2 – Measure P – Rent Control
Attachment 3 – Measure P Results