A request to lower the minimum age requirement at Hope Senior Apartments in order to maintain a tax exemption was unanimously rejected by Oxford Township officials last week.
‘I think the age of a senior citizen is 62 years old and I think it should remain that way,? said Trustee Pat Fitchena.
Built in the early 1990s with the aid of government financing, Hope Senior Apartments is located on W. Drahner Road and offers 50 apartments to senior citizens of low and moderate income who are at least 62 years old.
Lin Wiley, of the Bingham Farms-based Lockwood Management Company which manages Hope Senior Apartments, wrote a Jan. 6 letter to the township requesting ‘an age waiver? on a local tax exemption ordinance in order ‘to assist in the marketing of vacant units.?
Hope wishes to rent five apartments to seniors who are at least 55 years old, enabling marketing to a wider range of potential customers.
But in order to do this and keep its tax exemption, Hope needs the township’s approval.
A tax exemption ordinance approved by the township board in January 1992 made it so that Hope Senior Apartments only pays the township a fixed $1,050.69 per year in lieu of property taxes.
Treasurer Joe Ferrari explained that amount is ‘for the life of the project? and is based on the how much in taxes were assessed on the Hope property when it was just vacant land.
In this ordinance, ‘elderly? is clearly defined as persons ?62 years of age or older? and only residents of that age can live at Hope Senior.
Wiley claimed the age requirement needs to be lowered because Hope Senior Apartments is struggling financially.
‘Hope Senior is currently 82 percent occupied and the low occupancy has had a negative financial impact posing a financial hardship in the overall operations of the community,? Wiley wrote. ‘We have significantly enhanced our marketing efforts at the community to increase the declining occupancy at Hope Senior; however, we continue to struggle due to move outs (because of) ailing health or deaths of existing residents.?
‘By approving 10 perent of the total units (5 apartments) to be rented to seniors 55 or better will assist us in marketing to a larger demographic of seniors.?
Township officials were clearly opposed to this request. Ferrari’s opposition was based on fairness.
‘My gut was you would have to take a look at how you treat other people ? Independence Village (of Waterstone), other folks that offer the same service, (but) do not get that tax break,? he said.
Ftichena thought Ferrari’s analogy did not apply here.
‘I don’t believe that Independence Village has subsidized housing,? she said. ‘So there is a difference.?
However, Fitchena also didn’t support lowering Hope’s minimum age and offered a different perspective as to why the apartment complex is having difficulties.
‘I think partially what the problem is at Hope Senior right now is that the maintenance of that building has gone down horribly,? she said. ‘The activities that are there are no longer to the liking of the residents.?
Clerk Clara Sanderson said the monthly rent Hope Senior charges is another ‘drawback? in her opinion. She said the rent for a one bedroom apartment there is more than the apartments on Pontiac Street.
‘I think that’s why they have a lot of vacancies because the local seniors can’t afford that,? Sanderson said. ‘My mother was paying like $680 a month.?
A one bedroom apartment at Hope Senior is $682 per month while a two bedroom is $764.
Trustee Sue Bellairs, who also opposed the age change, agreed the rent at Hope is a problem.
‘I know a lot of people have moved out because it was too high,? she said. ‘They are more expensive. Not as expensive as Independence Village, but you’re not getting what Independence Village has.?
Bellairs noted she found it ‘strange? that Hope Senior was attributing its vacancies and financial difficulties to residents leaving because of sickness or death.
‘This is a senior housing complex,? she said. ‘That happens in all senior housing. That is not strange just to Hope.?
If the township ever does change Hope Senior’s tax exemption, Assistant Fire Chief Pete Scholz said, ‘I’d like to see them at least pay their fair share of the full (Advanced Life Support) fire millage.?
He noted that last year the department made 27 runs to Hope Senior and in 2004 it was ‘close to 35 times.?
On Monday, Wiley said in a phone interview she ‘expected? the township to reject her request.
‘I anticipated it being denied,? she said. ‘So, it wasn’t any shock.?
‘Fortunately, we don’t need the waiver at this point,? Wiley noted.
She said currently Hope Senior is at 84 percent occupancy (42 apartments) and ‘we expect by the end of this month to be at 94 percent occupancy.?
Wiley explained that a slowdown during the holiday season caused the occupancy to fall to 82 percent (41 apartments), which had ‘put some major financial hardship on the property.?
But now that the holidays are over, families are ‘making decisions? again. ‘One of the things with senior housing is it’s not just the seniors? decision, it’s the entire family’s decision,? Wiley said.