Raleigh affordable housing residents say they're blindsided by rent increases
Affordable housing is becoming less affordable for some people in Raleigh even with efforts to keep costs down.
Residents of the Grosvenor Gardens Apartments said they’re blindsided by a rent hike of hundreds of dollars per month.
Resident Andi Drew said she can afford $800 per month and the apartment is close to her job. She received a letter in the mail saying her rent would increase to $1,100 starting July 1.
“Some people it’s [a] 30% [increase],” Drew said. “For me, it’s almost a 50% increase in a month. And, by any measure, that’s not affordable for anyone.”
Drew's latest increase comes after her monthly rent went from $750 to $800 in February. She said she felt even more secure when she heard the city of Raleigh and Raleigh-based nonprofit CASA were buying the building to preserve the apartments as affordable housing.
“I was like, ‘Wow, the city of Raleigh cares about people and affordable housing and I’m safe for now,’ and I really trusted in that,” she said.
Data from the U.S. Department of Housing and Urban Development shows the fair-market rent in 2023 for a studio in Raleigh is $1,213. It’s an increase from $1,038 in 2022.
Here’s how the fair-market rates compare in Raleigh:
One Bedroom
2023: $1,250
2022: $1,073
Two Bedroom
2023: $1,412
2022: $1,223
Three Bedroom
2023: $1,733
2022: $1,517
Four Bedroom
2023: $2,293
2022: $1,982
In October 2022, WRAL News reported about Raleigh and Wake County leaders launching the Wake Affordable Housing Preservation Fund (WAHPF) to try to make sure the affordable places that exist right now – stay affordable.
Some of the funding – about $2 million from the city – was used on the Grosvenor Gardens.
CASA said it purchased the apartments for $12 million in partnership with the city and the WAHPF. The nonprofit said it saved Grosvenor Gardens from developers buying it, which the organization says would have forced all the tenants out in favor of hotels or luxury apartments.
On Wednesday, CASA declined WRAL News’ request for an interview. However, CASA CEO Everett McElveen provided a written statement.
“The rental increase was unfortunately a necessity, as this property was running at a significant deficit,” McElveen said. “CASA is paying debt service on the $7M WAHPF loan as well as another $3M loan from Self-Help Credit Union, both of which were necessary to buy the property.
“We understand navigating through a rental increase can be difficult for some residents, and our team is on standby ready to answer questions and provide assistance. The increase will help ensure sustainable operations for the property in the long run, allowing CASA to provide long-term affordability.”
Drew isn’t the only neighbor in a tight spot with the proposed rent increases.
“I feel kind of lied to,” resident Cass Kentner said. “[I’m] incredibly caught off guard.
“I’ve got to ask myself, can my job afford this?”
Resident Aaron Denney echoed Kentner’s sentiments.
“It’s put me in a really tough spot,” Denney said. “I’ll be honest with you, that’s not something I can really afford to pay right now.”
Drew and her neighbors worry this rent hike won't be the last.
“I just feel like it’s kind of a bait-and-switch,”Drew said.
The city and Wake County sent a joint statement on Wednesday.
"The City of Raleigh and Wake County will discuss the rent increases with CASA to better understand what can be done to ensure rent affordability for current tenants and prevent displacement while balancing needs for the long-term sustainability of the property," the statement reads. "We appreciate CASA for their partnership to the City and County, and for undertaking this affordable housing preservation effort without which 62 affordable housing units would have been lost entirely."
Since WRAL News started asking about this, CASA has decided to delay the rent increase by a month.
WRAL News asked if the money will go to pay for renovations or improvements. CASA says there are no immediate plans for that.
