Oak Terrace Tenants Secure Lowered Rent Increase

by Amee Chew
June 15, 2005

Tenants in several Boston Chinatown housing developments began organizing against rent increases less than a year ago, and continue their struggle. Oak Terrace is a mixed-income subsidized building developed by a non-profit community development corporation. While it was created in the mid-1990s to help alleviate the need for affordable housing, earlier this year, several tenants received rent increases as high as 20 percent.

Through a series of meetings with Oak Terrace's management and the board of Asian Community Development Corporation (ACDC), which owns the building, a newly formed tenant association negotiated to have their own proposal for an average rent increase of 4 percent accepted. The tenants had conducted their own meetings, submitted petitions, and demanded to see the management's finances. Their proposal aimed to keep units as affordable as possible without causing the project to lose money.

While Oak Terrace tenants have managed to stem rent increases partially, the building's affordability for its current tenants in the long-term remains uncertain. For low-income tenants whose income is below 30% of the Area Median Income, even units classified as affordable housing are quickly becoming out of reach. The tenants still seek to develop a multi-year rent increase plan, as well as to secure full answers to their questions about the management's expenses.

In Chauncy House, another mixed-income development, the tenants association received formal recognition from management, and a commitment to open its finances. Tenants who were not fully aware of their rights and paid a higher rent even though HUD had not approved the increase, were able to secure refunds. However, they await the management's proposal for next year's rent increases.

Tenants associations are fighting back in a climate of uncontrolled rent increases driven by the market and upscale housing developments; as well as drastic cuts in government funding for housing subsidies in recent years.

Previous articles on rent struggles in Boston Chinatown:
A Call to Fight Back Against Rent Increases in Boston