On a Friday afternoon, two men carrying a headboard from an upstairs unit of 176-182 Palm Ave. in Marina stop for a quick break. They wipe the sweat from their foreheads before continuing to carry the piece of furniture onto a moving truck. The sight of such trucks, according to some residents of the apartment complex, is only going to become more frequent in the months ahead.
Fifty-eight-year-old Robert Morris was a resident of this building until he moved out on Oct. 28 because of a rent increase. According to Morris, their new landlord Brad Slama came knocking in September, notifying them of the change of ownership.
A few days later a team from Cardinalli Realty and Property Management came knocking – and handing out new leases informing tenants of a monthly rent increase from $900 to $1,475 that would take effect in January 2018.
It was a spike of nearly 64 percent, and would put the property well out of the terms of Morris’ voucher assistance from the U.S. Department of Housing and Urban Development.
Morris, an Army veteran, was homeless for 10 years until he found the Veteran’s Transition Center in Marina. The center helped him get HUD assistance through the Veterans Affairs Supportive Housing program, a voucher known as a HUD-VASH.
Morris found his unit on Palm Avenue in Marina in 2012 at $900 a month; he’d pay $330 and HUD-VASH would cover the rest. He lived there for five years until the property sold quietly.
Slama, who bought the property in September for $3.1 million, says he understands the rent spike is severe, but also says the old rate was under market, with one-bedroom apartments in the area going for around $1,650 a month.
Slama says and the increase is necessary for improvements like a new roof and fresh paint. “It’s a snowball effect the ends up costing the consumer,” Slama says. “It’s not my intention to push anybody out.”
Slama offered current tenants monthly rents of $1,475 – a 10-percent discount off the new market rate – if they wanted to stay. (For units that are vacant, he’ll rent them out for $1,650 per month.)
Meanwhile, Morris is scrounging around the internet for places that fall within his voucher’s terms. “I love this community,” he says, “but you can’t find anything anywhere here for $1,200.”
Morris doesn’t yet know where he’ll go. He’s looked at places as far away as King City and Greenfield, and says the competition is fierce and affordable rentals go fast: “Sometimes I’m in the running against a hundred or so people at once, for one place,” he says.
Though Morris knows he’s been hit hard, he wonders about his eight or so low-income neighbors, like his friend and fellow veteran, Fred Boumeester, who paid only $5 per month out-of-pocket for his Palm Avenue unit because of his Section 8 voucher.
“I’ve lived in this area all my life,” says Boumeester, a Pacific Grove native who’s now 59. Boumeester doesn’t blame Slama for raising the rent on a valuable coastal property.
“It’s the American way,” he says. “It’s just sad that it’s pushing us further and further from our homes.”
(2) comments
We live near this apartment complex. I have been inside one of the apartments. In my opinion, these apartments and this complex aren't even worth the present rate of $900/month, much less the rates coming up in January. The apartments are rather small. Parking is very limited. And I am not impressed by Cardinalli, either. They aren't real renter-friendly. We were treated with disdain by some tattooed creature when we went to their Monterey office to inquire about an apartment. I feel sorry for all the tenants of this complex, both those leaving and those staying.
I feel your pain sir.. We have paid are rent on time, been in good standing, for the past 5 years blessed with a beautiful 2 bdrm apartment, Preston Park has been our home as we could afford and qualified for the Below Market Rate monthly rent of $883 a month. Having a safe place to call home, had a positive impact on my kids. One of the lease requirements for the rent to remain affordable at Below Market Rate is a household size consisting of THREE people. Initially it was me, my daughter, and my youngest son when we moved in 5 years ago, but my daughter has now graduated high school with honors and was accepted to SJSU. She has left the nest to further her education majoring in Business Administration she is pursuing her dreams and Masters Degree in San Jose which we are so happy for her. We love our home here at Preston Park in Marina, but now with my daughter at college, it's just me and my 8 year old son which changes our household size from 3 to 2 and we no longer meets the required Three person minimum household size
for a 2bdrm apt at the Below Market Rate. My son loves his home here and it breaks my heart to tell him. 💔
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