East Lyme – Several dozen Niantic tenants facing drastic rent increases were congratulated by members of the Board of Selectmen who ratified the creation of a Fair Rent Commission on Tuesday, thereby “speaking truth to power.”
First Selectman Dan Cunningham welcomed the approximately 50 people who gathered in the City Hall meeting room at noon for a public hearing and vote on the ordinance establishing the commission.
“It takes courage to speak truth to power,” he said. “And everyone in this room has done that.”
Since last month, residents of the 60-unit Windward Village complex on Main Street and affordable housing advocates had been pushing city officials to take advantage of a 50-year-old state law and create a Fair Rent Commission to regulate “harsh and unreasonable” rent increases.
The First Selectman in his first term was instrumental in speeding up the often lengthy process of passing local laws, and his efforts were unanimously approved by the Selectmen.
The regulation comes into force 10 days after it is submitted to the Citizens’ Office.
The move came after Shelton-based real estate investment firm Alpha Capital Funds purchased the Windward Village building for $8.4 million in June and began notifying tenants that their rent would see an $800 to $900 increase when their leases came up for renewal.
The company predicted in a social media post that the complex would be worth $14 million once the rent increases take effect and renovations to the property are completed.
The tenants, who are mostly elderly, said the company’s efforts to raise rents – and in some cases not to renew leases – were unexpected and without sufficient notice, leaving them unable to find alternative accommodation at a time when affordable housing is scarce.
They also spoke of hidden fees, sloppy maintenance and violations of building and fire codes at Windward Village. Alpha Capital did not respond to a request for comment on Tuesday.
The new commission can order landlords to reduce rent to a “fair and reasonable” amount, force them to make repairs to bring apartments into compliance with building codes or local or state laws, and look into allegations of retaliation by landlords.
“First there”
Resident Tonya Harris was one of the first to learn that the new owner would not renew her lease, which expired in early August. Subsequent negotiations resulted in a rent offer for her two-bedroom apartment of $2,000, down from the $1,450 she paid under the old lease.
After the meeting, she welcomed the establishment of the Fair Rent Commission with a “Yay, we did it!” to the crowd leaving the meeting, who cheered back.
Harris told The Day she would follow the process so she would be prepared when the commission was ready to accept complaints.
“I will be the first to get a rent reduction there,” she said.
Cunningham said city councilors must appoint members to the commission and determine who at City Hall will oversee the administrative process.
The tenants emphasized the urgency of the situation.
Harris said she is currently behind on her rent, but the company has not initiated eviction proceedings. She receives $1,700 a month in disability insurance benefits due to a 2017 car accident and said she has been paying as much as she can on time and will continue to make payments when she is able.
Big corporations versus big government
During the deliberations, Councilwoman Candice Carlson called the new owners of Windward Village tyrants.
“I’m so proud of you,” she told the tenants. “Keep going. Keep standing. Keep speaking truth to power.”
While no one spoke out against the ordinance at the public hearing, Carlson and others pointed to calls from people criticizing the commission, saying it was an attempt by the government to regulate the free market, which could negatively impact local small landowners.
However, Carlson rejected the idea of a commission as “big government,” instead calling real estate investment firms like Alpha Capital Funds out of touch with reality and too small compared to local companies.
“There is something very, very wrong about big corporations coming into town and forcing an unjustified rent increase like these people have done,” she said.
Assistant First Selectwoman Ann Cichiello acknowledged that the commission often does not receive much public input in its decisions. She praised tenants for speaking out and reminded them that the commission is meant to benefit everyone in the city.
“I hope it will be fair, not only to the tenants but also to the landlords,” she said. “It’s not just for tenants.”
Judy Plouffe, a resident of Windward Village who faces an $800 rent increase when her lease expires in January, expressed hope that the commission would enable tenants to successfully negotiate with the company.
“I try to be optimistic,” she said.
Jean Church was more confident that the commission would have the impact that the tenants had demanded.
Church’s lease expires on Feb. 28. She said the waiting list for apartments she could afford is about 2 1/2 years long.
“I’m thrilled we can stay,” she said.
