Buffalo, N.Y. (WBEN) - The Buffalo Municipal Housing Authority (BMHA) Board of Commissioners voted on Thursday to file a request with New York State Homes and Community Renewal to raise rents at Marine Drive Apartments.
The BMHA seeks to increase Marine Drive rents by 10% to help bridge the gap between rent income and rising operating losses. Over the last three fiscal years, operating losses at Marine Drive have totaled more than $1.2 million, with projections that losses will rise more than $500,000 in the current fiscal year, which ends June 30, 2025.
"Raising rents is not something we take lightly, but the only source of income at Marine Drive is rent. While the development is overseen by New York State Homes and Community Renewal, we receive no operating subsidy from the state," said BMHA executive director Gillian Brown. "In compliance with the state’s affordable housing requirements, no resident will pay rent that exceeds 30% of their monthly income which means many Marine Drive residents will see no rent increase."
If the state approves the request, the monthly increase will range from $36.85 to $114.40, depending on unit size. Most Marine Drive residents - 62% - live in two-bedroom standard apartments and will see their rent rise from $474.10 to $521.51, an increase of $47.41.
Residents were notified of the potential rent increase in early July, and the BMHA held a community meeting to detail the need for an increase, just the third rent boost since 2004. As the state review and approval process can take several months, it is unknown when the higher rents will go into effect.
The commissioners also approved resolutions to enable significant updates at Lakeview on the Park and Lakeview Family Homes developments on Buffalo’s lower West Side. Applications will be submitted to the federal Department of Housing and Urban Development to convert both developments to Project-based Voucher (PBV) units through HUD’s Rental Assistance Demonstration Project.
The change will make it possible to use a combination of private and public funding to fund the renovations of the 292 units built in 1999 and 2000.
The Board approved similar RAD applications for the project in 2018, however, they were withdrawn when the developer and the BMHA could not agree to terms on a financial plan. The developer has since submitted a financing plan that meets BMHA requirements.
The developer sent notices and held resident information meetings in July and August to detail the project and the conversion to PBVs.
Rents will continue to be calculated based on income, every resident in good standing will have the right to return without rescreening, all efforts will be made to return to their current units, and relocations will be conducted following the federal Uniform Relocation Act.
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