Nonprofit housing developer jacks up rent as Trump proposes $6.2 billion in cuts to HUD

Nonprofit housing developer jacks up the rent as Trump proposes $6.2 billion in cuts to HUD

By Lynda Carson - May 28, 2017

Oakland - With the Trump regime pushing for a massive $6.2 billion to $6.8 billion in budget cuts for the Department of Housing and Urban Development (HUD), so-called nonprofit affordable housing developers see the writing on the wall and are jacking up the rents on the poor, elderly, and disabled renters in their projects as fast as they can, before the budget cuts take effect.

This way, when the budget cuts take effect, the poor, elderly, and disabled tenants in HUD’s subsidized rental housing units being operated by so-called affordable housing developers, the renters will already be locked into a higher rent, and will be forced to make up the difference when Trump’s budget cuts take effect. Or lose their housing.

As recent as May 23, 2017, the Trump regime released its detailed FY 18 budget cutting proposal for HUD that slashes funding for HUD’s subsidized housing programs by $6.2 billion to $6.8 billion.

According to the Center on Budget and Policy Priorities, the budget cuts will result in the elimination of 250,000 housing choice vouchers (section 8 housing vouchers), which mainly helps extremely low-income seniors, persons with disabilities and working families with children.

Estimates with Affordable Housing On-Line claim that the Oakland Housing Authority (OHA) will lose $21,427,980 million from the Housing Choice Voucher Program it is operating in Oakland, if Trump’s proposed budget cuts take effect. New estimates reveal that the OHA could lose approximately 1,565 out of 13,264 vouchers as a result of the loss of $21,427,980 in funding.

Additionally, the Trump regime wants to cut $24.9 million from Section 811 housing for persons with disabilities. Reportedly, Oakland has 77 Section 811 funded apartments for persons with disabilities, which face a loss of $94,737 in funding due to the proposed budget cuts.

According to the National Low-Income Housing Coalition, a proposed decrease of $465 million in funding from the FY 2017 funding level for project-based rental housing means that there will not be enough funding to cover existing contracts for all the poor, elderly and disabled renters in those apartments.

The Trump regime’s proposed $6.2 billion in budget cuts to HUD, threatens the Section 8 voucher holders, and project-based section 8 units filled with the poor, disabled and elderly renters in around 153 so-called low-income affordable housing projects in Oakland with higher rents, or eviction from their housing.

Not all affordable housing developers across the nation are speaking out against the proposed budget cuts to HUD’s subsidized housing programs. Some of the so-called affordable housing developers are already are jacking up the rents on the poor, elderly and disabled locally, and all across the nation before the budget cuts take effect in HUD’s subsidized housing programs. This way, the renters will already be locked into much higher rents and will be forced to pay the difference when the budget cuts take effect.

This is an inhumane practice and is a catastrophe in the making because most of the elderly and disabled renters are on a fixed income. They can not afford to make up the difference in rent when the budget cuts kick in. The executives in the so-called affordable housing industry that are jacking up the rents on the poor, elderly and disabled before the budget cuts take effect, should immediately consider reducing their salaries and wage compensation, instead of ripping off the poor with excessive rent increases that will harm the elderly and disabled.

Nonprofit Housing Developers Jack Up The Rent As Trump Proposes $6.2 Billion In Cuts To HUD

As recent as May 23, 2017, the Trump regime released its detailed FY 18 budget cutting proposal for HUD that slashes funding for HUD’s subsidized housing programs by $6.2 billion to $6.8 billion in budget cuts.

In an immediate response to the massive proposed budget cuts to the Section 8 voucher program (Housing Choice Voucher Program), including cuts to the Section 811 housing for persons with disabilities, and proposed budget cuts of $465 million to the project-based voucher program, the East Bay Asian Local Development Corporation (EBALDC) sent out a “NOTICE OF TOTAL CONTRACT RENT ADJUSTMENT,” dated May 24th, 2017. The notice was sent to the Oakland Housing Authority, and a renter at Effie’s House in Oakland.

EBALDC is one of Oaklands largest so-called affordable housing developers, and is raising the rents on the poor, elderly and disabled in response to the $6.2 billion in proposed cuts to HUD’s subsidized housing programs.

The notice demands an $830 rent increase from the Oakland Housing Authority (OHA), for a Section 8 tenant (housing choice voucher holder) who resides at Effie’s House. The Section 8 renter is elderly in their 60s, on disability and a fixed income. The Section 8 tenant will be forced to pay a higher rent, or lose their section 8 voucher, if the $830 rent increase is granted, and if the budget cuts to HUD, and the OHA take effect in the near future.

Already housing authorities are with-holding section 8 vouchers because of the threat of budget cuts, and reportedly in Houston the local housing authority took back 900 section 8 vouchers from tenants.

Knowing full well that HUD is facing $6.2 billion in budget cuts, and the OHA is facing a massive budget cut of $21,427,980 to its section 8 voucher program, EBALDC still wants an extra $830 per month rent increase from the OHA by August 1, 2017, for a section 8 renter in one of its properties.

Currently in Oakland, the annual CPI rate for rent increases effective July 1, 2016 through June 30, 2017, is 2.0%, and on July 1, 2017 the annual CPI rate for rent increases in Oakland will be 2.3%, but EBALDC wants a rent increase of $830 per month, for an apartment that currently rents at $864 per month.

The demand for higher rent increases from housing authorities locally and across the nation for tenants in HUD’s subsidized housing units is happening because the so-called affordable housing developers are in a state of panic. They want to lock as many poor, elderly and disabled renters into higher rents before the budget cuts to HUD’s subsidized housing programs take effect. This way, when the budget cuts take effect, the renters will be forced to make up the difference, and the executives in the affordable housing industry can maintain their high salaries, and wage contributions.

According to the last 990 tax filing made by EBALDC for 1/1/2015 - 12/31/2015, after deducting their liabilities from their assets, EBALDC had net assets or a fund balance of $23,266,360. Its clear that EBALDC does not need to jack up the rent by an extra $830 per month on the poor Section 8 tenant, or the OHA, which is currently facing massive budget cuts to its section 8 program, and public housing program.

Despite the massive budget cuts occurring in recent years to HUD’s subsidized housing programs, according to public records, on 12/31/2013 the salary of EBALDC’s executive director Joshua Simon was $115,385. By 12/31/2015, his salary was increased substantially to $161,471, plus $26,544 in other contributions. In 2013, Charice Fong of EBALDC made $92,769. In 2015, Charis Fong was paid a whopping $148,874, plus $4,466 in other compensation, despite the fact that budget cuts have been occurring in HUD’s subsidized housing programs.

Compensation For Other Local So-Called Nonprofit Affordable Housing Executives

Despite the massive sequestration budget cuts that occurred in recent years to HUD’s subsidized housing programs, and the current proposed $6.2 billion in budget cuts to HUD’s subsidized housing programs, the salaries and wage compensation of the executives in the local so-called affordable housing industry continue to skyrocket to obscene heights. This keeps happening at the very same time they keep demanding higher rent increases or income levels, for renters and the HUD subsidized housing units they are exploiting.

Eden Housing, Inc. - From July 1, 2008, through June 30, 2009, Executive Director Linda Mandolini was paid $162,393 in salary plus $14,368 in other compensation and worked only 28 hours per week. Chief Operating Officer Jan E. Peters was paid $136,500 plus $13,177. CFO Terese McNamee was paid $133,743 plus $6,167. Director of Development Andrea Papanastassiou was paid $131,455 plus $6,618 in other compensation.

According to public records for Eden Housing for 7/1/2014 through 6/30/2015, executive director Linda Manolini pulled in a whopping $252,000, plus 19,962 in other compensation. Jan Peters was paid $210,000, plus $17,862 in other compensation. Anthony Ma was paid $178,412, plus $16,233 in other compensation. Andre Madeira was paid $166,154, plus $555 in other compensation. Three other executives were paid over $123,000 in compensation.

Satellite Housing: From Oct. 1, 2008, through Sept. 30, 2009, Executive Director Ryan Chao was paid $163,893 plus $6,377 in other compensation. The previous year, Executive Director Arion Chao had been paid $167,000, Director of Finance Joyce Boyd was paid $81,760, Miriam Benavides was paid $85,000, Director of Property Management Analisa Anthony was paid $87,550, Director of Housing Development Dori Kojima was paid $92,000 and Director of Residential Services Patricia Osage was paid $80,000.

According to public records for Satellite Affordable Housing Associates Property Management, during 7/1/2014 - 6/30/2015, Susan Friesland was paid $185,694, plus $17,494 in other compensation. Zachary Lopez was paid $170,500, plus $12,885 in other compensation. Angela Cavanaugh was paid $102,184, plus $17,918 in other compensation.

Resources for Community Development (RCD): From July 1, 2008, through June 30, 2009, Executive Director Dan Sawsilak was paid $112,900 in salary plus $9,814 in other compensation, and Finance Director Peter Poon was paid $69,505 plus $1,362. The previous year, Senior Project Manager Deni Adaniya was paid $90,000, Asset Manager Eric Knect was paid $73,438, Controller Kate McKean was paid $70,825, Director of Fund Development Elizabeth Eckstein was paid $68,542 and Finance Director Peter Poon was paid $65,840.

According to public records for Resources For Community Development, during 7/1/2014 - 6/30/2015, Dan Sawislak was paid $119,466, plus $38,040. Peter Poon was paid $79,957, plus $33,517. Carolyn Bookhart was paid $101,156, plus $5,103. Eric Knecht was paid $102,680, plus $9,422. Katherine McKean was paid $106,440, plus $8,846.

Affordable Housing Associates (AHA): From July 1, 2009, through June 30, 2010, Executive Director Susan Friedland was paid $116,660, Finance Manager Leland Chin was paid $76,514, Construction Manager Teresa Clarke was paid $84,413, Director of Development Kevin Zwick was paid $84,460, Project Manager Eve Stewart was paid $67,000 and Director of Property Management Angela Cavanaugh was paid $68,000.

According to public records, for Affordable Housing Associates which is now known as Satellite Affordable Housing Associates, from 7/1/2014 - 6/30/2015, Susan Friesland was paid $185,694, plus $17,494. Miriam Benavides was paid $125,419, plus $17,494 in other compensation. Eve Stewart was paid $130,761 in other compensation. Thomas Early was paid $163,291, plus $33,421 in other compensation. Jeff Hodos was paid $154,275, plus $7,240 in other compensation.

EAH Inc. (EAH Housing), Marin County: From July 1, 2009, through June 30, 2010, Stephen Lucas was paid $182,197 in salary plus $6,951 in other compensation, Peggy Franklin was paid $331,371 plus $12,460, Matt Steinle was paid $162,410 plus $9,453, Mary Murtagh was paid $254,030 plus $10,733, Laura Hall was paid $186,136 plus $6,951, Kevin Carney was paid $135,667 plus $6,951, Cathy Macy was paid $132,931 plus $6,951 and Alvin Bonnet was paid $122,471 plus $8,669 in other compensation.

According to public records for EAH Inc, from 7/1/2014 - 6/30/2015, Mary Murtagh pulled in a whopping $316,655, plus $23,840 in other compensation. Laura Hall was paid $255,972, plus $24,306. Cathy Macy was paid $224,382, plus $17,087. Diana Ingle was paid $203, 294, plus $17,532. Matthew Steinle was paid $199,728, plus $18,294. Kevin Carney was paid $167,924, plus $13,051.

Bridge Housing, San Francisco: From Jan. 1, 2008 through Dec. 31, 2009, Carol Galante was paid $203,860, Lydia Tan was paid $316,611, Susan Johnson was paid $255,001, D. Valentine was paid $231,615, Ann Silverberg was paid $173,319, Rebecca Hiebasko was paid $271,683, Brad Wiblin was paid $212,823, Tom Earley was paid $224,432, Corinne Morrison was paid $178,312, Thomas Casey was paid $163,939, James Valva, husband of Susan Johnson, was paid $165,097, Kim Nash-Patchen was paid $157,054, and Elizabeth Nahas-Wilson, daughter of director Ron Nahas, was paid $127,979 plus $29,075 in other compensation.

According to public records for Bridge Housing, San Francisco. From 1/1/2015 - 12/31/2015, Cynthia Parker was paid $660,454, plus $87,909 in other compensation. Kimberly McKay was paid $292,611, plus $80,881 in other compensation. Susan Johnson was paid $289,244, plus $51,508. Rebecca Hlebasko was paid $$287,188, plus $93,545. D Valentine was paid $269,946, plus $87,507. Ann Silverberg was paid $262,210, plus $27,412 in other compensation. Brad Wilbin was paid $283,293, plus $96,148. Elizabeth Van Benschoten was paid $230,579, plus $28,371. Corrine Morrison was paid $220, plus $54,620. James Valva was paid $192,121, plus $37,622. Sarah Jelley was paid $161,238, plus $49,539. Susan Neufeld was paid $154,039, plus $35,532.

Meanwhile EBALDC which has a whopping fund balance of $23,266,360 during 2015, is demanding an $830 per month rent increase from the Oakland Housing Authority, for a poor, elderly, disabled section 8 tenant at Effie’s House, by August 1, 2017. This occurred just as the Trump regime is proposing a $6.2 billion budget cut to HUD, and massive budget cuts to the Oakland Housing Authority.

Estimates with Affordable Housing On-Line claim that the Oakland Housing Authority (OHA) will lose $21,427,980 million from the Housing Choice Voucher Program (formerly Section 8 voucher program) it is operating in Oakland, if Trump’s proposed $6.2 billion in budget cuts take effect. Estimates reveal that the OHA could lose approximately 1,565 out of 13,264 vouchers as a result of the loss of $21,427,980 in funding if the budget cuts take effect.

Indeed, despite the budget cuts occurring, its business as usual for the so-called affordable housing industry. Nothing short of a complete and total rebellion by the tenants in HUD’s subsidized housing programs can stop the so-called affordable housing industry from exploiting the tenants, and HUD’s subsidized housing programs.

As for HUD Secretary Ben Carson, he supports the massive $6.2 billion in budget cuts to HUD being proposed by the Trump regime, and has been heard from Cloud 9 recently claiming that poverty is a state of mind.

Lynda Carson may be reached at tenantsrule [at] yahoo.com

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