Big rent increase at Williamsburg affordable complex gets federal scrutiny

TRD New York /
Jun.June 14, 2012 09:00 AM

The management firm behind a Williamsburg affordable complex is trying to get approval for a 19 percent rent increase, according to the New York Daily News. Kraus Management wants to up the monthly costs for about a quarter of the tenants of its 639-unit Bedford Gardens Complex On Ross Street to cover renovation costs.

But it first must obtain approval from the city’s Department of Housing Preservation and Development and the U.S. Department of Housing and Urban Development, because many tenants are rent subsidized. Even though it only affects a portion of the tenants, the rent increase, first proposed by Kraus in March, has drawn the ire of local officials are fighting the increase to protect affected tenants and taxpayers who must foot the higher subsidized rent bill.

“The exorbitant rent hikes being proposed at Bedford Gardens are putting an affordable development at risk of no longer being affordable,” said District Leader Lincoln Restler said.

Tenants of the building also say the building has deteriorated into near slum-like conditions, making the rent hike appear even more unfair. [NYDN]

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