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Neighbors push for rent control as retirement communities face drastic increases

03-29-23 NAVARRE VILLAGE TOWN HALL.jpg
Posted at 11:48 PM, Mar 29, 2023
and last updated 2023-03-30 22:36:27-04

STARK COUNTY, Ohio — Neighbors in several Northeast Ohio retirement neighborhoods are hoping to fight back against steep rent hikes. After the same company took over properties in Navarre and Elyria, residents in both manufactured home communities worry about being priced out of their homes.

Wednesday night, nearly 200 neighbors from Navarre Village crowded into a church hall to discuss their options. Several told News 5 they were disappointed to learn they have few courses of action they can pursue.

“Pissed off, to put it plain, that’s the way we are,” said Marge Russ after the meeting.

The 55+ community was taken over by Legacy Communities, LLC in September. Neighbors there own their manufactured homes, but pay a monthly lot rent. Shortly after changing ownership, residents attempting to sell their houses discovered incoming residents would be required to pay more than double the monthly fee.

RELATED: ‘It’s paralyzing:’ Neighbors in retirement community blast new owners for double HOA fee

Neighbors said the drastic increase has driven away prospective buyers and burdened family members who lose loved ones in the park.

“If I die, my daughter’s not old enough to move in. What is she going to do with my house? She can’t keep 2 houses,” Russ explained.

Some in Navarre Village said their rent has already gone up 14.9%. Others have been told to expect a 7-8% increase upon their next lease renewal. The residents, many of whom live on fixed incomes, worry the increases will make their homes unaffordable.

“How [will] it impact me? A great deal. I live on a fixed income, social security,” said Bonnie Newell. “I just turned 80 and I had a stroke on this date last year. It’s made it a lot harder for me to keep things up.”

Another resident spoke of an 88-year-old neighbor who’s been forced to return to work so she can afford her monthly payments, adding she could face homelessness if she loses the ability to work or is saddled with another rent increase.

Twin Lakes in Elyria faces a similar dilemma. Legacy Communities, LLC acquired the property in 2019. Neighbors there told News 5 they were notified of an upcoming 9.6% rent hike, as well as steep increases for incoming residents.

READ MORE: Retirement community desperate for relief as month HOA fees soar

Residents in both communities tell News 5 the drastic increase cannot be justified by inflation, significant improvements to facilities or added amenities.

“Nothing, except a lot of fear from the residents worried about how high their rent is going to go,” said Newell. “Nothing’s been done. No one’s contacted us, except for a couple of letters.”

News 5’s reporting caught the attention of U.S. Senator Sherrod Brown, who is the chair of the Senate Committee on Banking, Housing and Urban Affairs. In December, he issued a letter to Legacy Communities, LLC about the steep rent hikes at Navarre Village and Twin Lakes. He also sent one to the Federal Home Loan Mortgage Corporation, better known as Freddie Mac, requesting a review of its financing practices for manufactured home communities.

RELATED: Retirement communities’ fears over rising rent prompt letter from Senator

More recently, Brown’s team said they had received responses from both parties and were in the process of reviewing them.

“Our system allows it to some extent, but hopefully people getting together as a force with numbers can try to push back,” said John Petit, a managing attorney for Community Legal Aid.

He spoke to Navarre Village residents during Wednesday evening’s meeting, stressing strength in numbers to put pressure on the company. He explained manufactured home communities operate under slightly different protocols. Unlike other rental owners who can more easily terminate leases, the law provides more protections for those who own their homes but pay lot rent.

“One of the things owners do to sort of force you out is to raise the rent so high that you end up having to move. So it’s a really tricky situation,” he said.

Some neighbors at the meeting encouraged everyone to write letters to state representatives, calling for rent control. Ohio law currently forbids caps on how high and how often property management companies can raise rent.

As residents weigh their options, many said they worry about losing their homes.

“It’ll be rough, very rough because I only get so much and social security only goes so far. And I’ve got to eat,” Russ said.

News 5 has been reaching out to Legacy Communities, LLC since we first started covering this story in November, but has not received an interview or statement from the company.

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