MONROE — Residents of the Monroe Village Apartments along 4th Avenue West recently attended a meeting to find out whether they will be able to afford to stay in their homes after the long-time owner finishes paying off its loan to the USDA and sells the complex.
USDA Rural Development Loan Specialist Julie Felhofer said Banyan Management Group of Madison, which oversees the property, notified the USDA that it intends to finish payments on the loan in mid-July and will then sell. Once the loan ends, the residents who receive subsidized rent will no longer get a reduction in rent according to their income.
However, Felhofer said vouchers will be issued instead.
“It’s the only tool we have to protect tenants like you,” she said to the room of roughly 40. “Stay compliant, get your paperwork done and you will be fine.”
The buildings will be assessed for market value and once residents have filled out the appropriate paperwork, payments from a voucher will instead be issued to the management company looking to purchase the property, KM3 Management of Milwaukee. Residents would pay the remaining amount that is determined by their income.
Felhofer was optimistic about the voucher program.
“I have yet to see a market change that disadvantages the tenants,” she said.
KM3 representative Melody Culver said during the meeting that the company plans to improve the living spaces and will help residents file documents to ensure they receive the financial support to remain in their apartments. Felhofer said the new owners must honor leases of residents already in the building as long as they continue to pay rent and maintain a good tenant status.
In a letter sent to tenants on May 1, Felhofer wrote that the request to pay off the loan was accepted by the Rural Development department because current restrictions require that tenants continue to receive rental assistance until October 2021.
According to the USDA listing website, which was last updated in 2015, 56 of the 63 total apartments at the location are subsidized. There are 40 one-bedroom and 24 two-bedroom units. Banyan Management Group declined comment on the loan payments and the sale of Monroe Village.
Roughly 40 tenants attended the meeting at the Monroe Public Library on May 31. Most expressed concerns over rent increases. Felhofer said the prospective new owners has not indicated a desire to raise rental fees, but that restrictions from the USDA do not allow “a big jump,” just fees of $10 to $20 for maintenance expenses.
Though the majority of the roughly 40 tenants indicated during the meeting that they would like to remain in their units, residents also raised concerns over whether they could leave their apartments. Felhofer said residents can move and use the voucher in another city, but the waiting list at other Rural Development properties can be long. The voucher remains with the person if they go anywhere else, but it is not a physical item for them to keep. Rental aid is disbursed over 12 months. Felhofer said it takes roughly 30 to 90 days for paperwork to be filed and that vouchers are not retroactive and will last for two years.
“We hope this helped ease some fears,” Felhofer said.
She urged everyone in the room to file documents as soon as they are received in the mail, likely around July 10.