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City council approves 3.5% rent increase for Washington Manor
Summary
The council voted to adopt a 3.5% rent increase for the municipally owned Washington Manor after reviewing HRA financial projections and hearing staff recommendations.
The Virginia City Council voted to increase rents at Washington Manor by 3.5% after a presentation from the city HRA director. The motion to adopt the increase was moved by Councilor Johnson and supported by Councilor Motley; councilors signaled assent by voice vote and the motion carried.
Dana Halton, Director of the Housing and Redevelopment Authority, presented the Washington Manor operating budget and rent-history materials, saying, “This is our time that we go over the annual budget for the Washington Manor.” Halton summarized the current budget position: operating revenues are tracking at about 66–67% through November of the fiscal year, vacancies have been higher than typical because of resident turnover to assisted living and nursing homes, and capital improvements were planned at about $50,000. Halton described projected net operating income under different rent-increase scenarios, with a no-increase projection of $16,437 and a 3.5% increase projecting $41,560.
City staff and councilors discussed the HRA’s ongoing effort to transfer ownership or management of Washington Manor to the HRA and noted items not yet in the budget projections, including payments in lieu of taxes and HRA property insurance. Halton recommended the 3.5% increase “to help us account for those things in all of our projections, as we're planning for that turnover and improvements to the property.” Councilor Johnson said the increase would help the city and HRA position the property for bonding for planned capital work and to provide a cushion during vacancy and upgrades.
Councilors asked whether residents had been notified; Halton said the city typically notifies tenants after the council makes a decision and that residents “always anticipate an increase.” The council also asked what other expenses residents pay; Halton said residents pay for cable and electricity and pay for indoor parking spaces if they have them.
The council then voted to approve the 3.5% rent increase as recommended by the HRA. The motion carried by voice vote.
