Tenants to join
local resistance
By DENNIS PFAFF
Of the Emerald
About five miles from the
University, nestled among the
houses and apartment buildings
of North Eugene, is a low income
apartment complex known as
Firwood Village. Its name may
soon be added to the growing list
of centers of tenant resistance
and organization in the Eugene
area.
The reasons, according to John
Kleve, a tenant in the complex,
are many, but cfenter around two
rent raises (one already in effect
and another possible) in the
current year.
The complex, built about two
years with a low-interest loan
from the Department of Housing
and Urban Development (HUD),
was designed to provide housing
for people who make little money
and can't afford more expensive
housing.
Many of the tenants are
students, as is Kleve. Most of the
others are senior citizens and
people on welfare.
When Kleve and his wife moved
into their small two-bedroom
apartment in March, they signed a
one-year lease. The least
stipulated a $121 monthly rent,
including utilities.
une conamon ot me ied^e w«js>
tht the rent could only be raised if
the cost of utilities, maintenance
or taxes increased.
The owner of the complex,
Hammond Development Cor
poration, based in Salem, has to
apply to HUD for approval of any
proposed rent raises. The owner
must also justify and document
the reasons the raise is sup
posedly required.
At any rate, in July, the tenants
received notices, signed by Jack
Miller, president of Hammond
Development, stating that rents
would be raised $11. The apparent
reason, according to Kleve, was a
rise in the consumption of
electricity by the tenants.
The tenants, knowing the
conditions of the lease, did not
object.
Tempers flared, however, when
on Nov. 1 a new notice was
received. This one said the rents
would remain at $132 —but with
the added condition that the
tenants would henceforth pay all
electricity. This, in effect, raised
the rent $10 to $15.
A meeting of all tenants was
called within the week. According
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to Kleve, the meeting was at
tended by Miller and over half the
people who live in Firwood
Village.
Two compromises proposed at
the meeting were reportedly
rejected by Miller. One would
have cut the rent $15 and required
the tenants to pay all the electric
costs. The other proposal would
have required the tenants to pay
the electricity over a certain
amount. This, the tenants
believed, would have eliminated
Miller's objection that tenants
were using an "unreasonable"
amount of electricity.
Now, it has also been learned
that Miller has applied for, and
received, HUD approval to raise
the government-subsidized rents
again. The new rate, if Miller
decides to impose it, would be
$153 a month for the standard
unfurnished two bedroom
apartment. Rents for larger three
and four-bedroom units would
increase accordingly. This would
amount to about a 25 per cent
increase since March.
The Emerald attempted to
contact Miller Wednesday. He
was not available, but a woman
who would only laughingly
identify herself as an "errand girl"
was willing to talk.
"I don't want to be quoted," she
said, "The boss (apparently
Miller) wouldn't like it."
She said the rent raises which
have taken place this year "are
probably about average for this
community."
When pressed for more in
formation, she said the increases
are necessary "because we own
the property and we're in it for us
and not for them (the tenants)."
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She repeatedly said, "HUD runs
us and they tell us what to do. If
we want to do something, and
they don't think it's reasonable,
they won't approve it."
In spite of the two rejected
compromises, the "errand girl"
said, "We had to do something
because we were just taking a
beating on electricity. You know,
when people don't have to pay
the electric bills themselves, they
just don't try to conserve it or
save money."
She said flatly, however, that the
how rents can be raised for people
on a lease, she explained that,
since the company holds the right
to cancel the leases (given a 30
day notice), they can be ter
minated and new ones, with
higher rent rates, can be issued.
The tenants at Firwood Village
have now organized into a tenants
union and have enlisted the help
of the Lane County Legal Aid
Society.
Steve Hewitt, of the society, said
his organization may undertake an
effort to get a court injunction
Firwood Village raises rent again,
'farce to term it a low income project'
March increase was not primarily
due to the increase in electric
costs. She blamed it on "in
creased costs everywhere."
She also remarked, "No one
forces them to live there." She
added, "If the tenants don't like
the rules and regulations or the
rent, they can move elsewhere."
This last comment seems to be
easier said than done, since the
vacancy rate in Eugene is about
one per cent.
In response to a question about
against any further rent increases
or attempts, in violation of the
lease, to have tenants pay their
own electric bills.
Hewitt also said he is conducting
a study to find out what rights
tenants in government-subsidized
housing have with respect to rent
increases.
Hewitt also said Wednesday, he
had received a new com
munication from HUD approving
a $12 to $20 rent hike for the
Firwood tenants. Whether this is
in addition to, or a substitute for
the proposed $153 rent structure
is unknown. In addition, Hewitt
said he had heard the owners may
offer an option to the tenants of
whether to personally pay the
electric bills with no rent raise, or
to take the raises and not pay the
electric bills.
Bob Nagler, ASUO Housing
Office director, said, "We're in
complete agreement with the
tenants."
"The rent increases seem to
represent a callous disregard for
the welfare of the tenants,"
Nagler continued. Almost bitterly,
he remarked, "It almost seems a
farce to term it a low-income
project."
Commenting on remarks that no
increases can take place without
HUD approval, Nagler said, "that
doesn't mean much, HUD has
been involved in scandals all over
the country."
He termed a 25 per cent increase
in rents based ostensibly on
electric costs "outrageous," and
went on to say, "It's becoming
more and more common for
landlords to take advantage of a
tight housing market by arbitrarily
raising rents, thus causing serious
economic hardships for those on
fixed and low incomes."
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