Renters in Fort Worth affordable housing complex feel pain of increased property taxes
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Sarah Dotson and her husband John have cerebral palsy. They moved to Fort Worth from Abilene because they found an apartment where they could live independently, without much help from their parents.
The Dotsons moved to the new Cielo Place on bustling Race Street about six months ago.
Saigebrook Development renovated the historic Riverside Baptist Church in 2021 and built 91 apartments. The complex offers affordable housing because the developer financed construction through a federal housing tax credit program in exchange for restricting the rent in 80 units.
“We were so excited,” Sarah Dotson said. “We dug and dug and dug and were on so many wait lists we found this place and fell in love with it.”
Dotson said her husband loves to cook, and the design of the apartment allows him to move around freely and to place his wheelchair where he can reach pots, pans and dishes.
They made friends and were building new lives.
Dotson, who is 33, befriended neighbors Barbara Rucker, 58, and Marilyn Sirois, 77.
Rucker has depression and asthma and was homeless twice. Getting the apartment at Cielo Place gave her a sense of security, she said.
Sirois, 77, wanted to continue living independently. Rent was increasing in other apartment complexes.
But in late May, the tenants were taken aback and angered by letters that informed them their rent was increasing by $175 a month starting in July although their leases weren’t up for renewal.
Like other renters across North Texas, the tenants are caught in a web of circumstances beyond their control, including increased insurance costs, increased property taxes because of higher values, and a higher median income in Tarrant Couty.
Megan Lasch, president of the real estate development company O-SDA Industries, which manages Cielo Place, said: “We are getting crushed with increases. Our insurance doubled, and our property taxes are increasing. We are trying to manage costs as best as we can and still keep everything affordable.”
Insurance has nearly doubled from the $36,000 estimate when construction began, Lasch said, and another increase is expected in August.
After the renovations at the building once slated for demolition, the property value increased 264% from 2021 to 2022, to $6.46 million, meaning the property taxes could more than triple when bills are sent later this year.
Another factor affecting the rental rates? HUD bases rents that landlords can charge on the area’s median income, which also increased in the Fort Worth area.
”Please know that we are working with residents as best as we can,” she said. “We are getting hit. It is a tough time right now on all sides of the equation.”
The three friends gathered recently in Sirois’ bright, clean studio apartment where fresh vegetables and spices lined the kitchen counters.
They are fortunate to get help from their families, but they still worry.
“I was homeless twice; I can’t go through that again,” Rucker said, trying to hold back tears.
She receives $821 a month in disability benefits. Her rent of $652 us set to increase to $827. Her son pays $300 a month to help his mother, but he also has children and can’t afford much more, Rucker said.
Sirois is retired, and receives a higher amount form Social Security, but making the higher rent payment won’t be easy, she said.
Sirois said she also worries about other tenants who may not have many options.
She described seeing more trash on the sidewalks and people smoking inside of the building, which is against the rules.
“Everyone was walking along the paths outside. Everyone was smiling at one another. I’m not seeing that now,” she said.
Dotson said she and her husband get $1,300 a month in disability income as a married couple. Their rent is also increasing from $652 to $827.
She had to ask her mother for help although she is trying to break away from her parents and live independently.
Dotson said she understands that rent has to go up, but she wasn’t expecting such a large increase.
“People say that $175 isn’t a lot of money, but it is when you don’t have it,” Dotson said. “I’m not Jesus. I can’t turn water into wine.”