Company: $1,000 rent increase a 'grievous error'

Letter erroneously informs residents of rent spike

PORTLAND, Ore. -- Renters at an affordable housing complex got a shock this week when a letter said rent would be increasing by more than $1,000.

One renter came home early from work Thursday because she was sick and found the letter on her door, according to her friend who shared the letter on Reddit. It outlined a rent increase at McCoy Village Apartments from $921 to $1,926, effective Oct. 1.

McCoy Village is located at 4605 NE Martin Luther King, Jr. Boulevard in Portland's rapidly gentrifying King neighborhood.

KGW contacted Catholic Charities, which said the letter sent by Cascade Management Company "had some errors in it."

A new employee mistakenly listed the fair market value of an apartment as the new rent for the affordable housing unit and sent the letter to the renters in the building.

Catholic Charities called the mistake a "grievous error."

Rent typically does not increase more than 3 percent for the apartment units, unless the renters start making more money. The rent is calculated using a formula that factors in the fair market value along with the renter's income and state and local subsidies.

Catholic Charities is meeting with the renter this afternoon to apologize for the error. The CEO of Cascade Management Company is also returning from his vacation early in order to help handle the situation.

Cascade Management released the following statement Friday afternoon:

Cascade Management understands there are concerns that have been expressed by the residents of McCoy Village regarding the rent increase notices sent on July 23, 2015. Those notices were issued in error and have been rescinded. The intent of the previous notices and any future notices is to determine how much Home Forward will allow to be paid for the unit. Any increase is intended to have minimal impact on the resident portion of the rent payment. We are in the process of clarifying this point with the residents by way of resident notices and a resident meeting.

Any further inquiries related to this matter should be directed to Cascade Management, Inc. at 503-682-7788.

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