Connect55+ residents, developer at odds over rent increases

Jul. 27—Moving into Meadville's newest apartment complex for older but still active adults, most thought it would be their last residence before they might need care.

Now, many are upset and looking to move out as they say their rent will jump 30 to 40 percent when current leases come due.

"It's a shock to all of us," Bill Hohmann, a resident of Connect55+, said of the more-than-30-percent rent increase he's facing.

"We sold our homes and got rid of stuff that we'd like to bring, just to fit in these apartments," said Naomi Stewart, a widow who downsized.

Connect55+ is a 128-apartment complex under construction on upper Pine Street in Meadville.

Developed by Calamar of Wheatfield, N.Y., Connect 55+ locations are marketed by Calamar as active lifestyle communities with amenities.

Those amenities include pet-friendly apartments that include a washer and dryer, along with heat, water, sewer and utilities. Communal amenities at locations include a hair salon, game room, computer room, exercise room, library and a community room with kitchen. Plus, there are to be onsite programs for residents as part of their rent.

But in Meadville, only 36 of the 128 apartments have been completed and only a few communal amenities are in place like the community room and hair salon as the COVID-19 pandemic disrupted construction and led to supply-chain issues.

Depending on the size and location of the apartment within the complex, current residents who spoke with The Meadville Tribune said their rents will go from $918 a month to $1,230 while others will rise from $1,344 to $1,744 a month.

A tight residential housing market is driving up rents not only in Meadville, but across the nation.

The Washington Post reported that nationally, rents rose a record 11.3 percent in 2021, according to real estate research firm CoStar Group. The report found Crawford County monthly rents had risen 5.5 percent since 2019 to an average of $828. The fast pace of growth remained elevated in the first months of 2022, as many parts of the country continued to notch double-digit jumps in rent prices.

Faced with a hike in rent, some Connect55+ residents have approached Meadville City Council and Crawford County Board of Commissioners to express their frustration. They also contacted state Sen. Michele Brooks and the Pennsylvania Attorney General's Office.

The seniors even have a public protest rally about rising rents set for Aug. 13 from 1:30 to 3 p.m. in Diamond Park.

"We've paid for a whole year now that's supposed to include these amenities and we don't have them," said Roy Twiford, another Connect55+ resident. "Yet, not only do we still not have them, we have to pay a 30 percent increase on top of it and we don't even have what we paid for to begin with."

Connect 55+ is trying to address the seniors' concerns.

On Monday, residents met with Marc Guizzo, Connect 55+ vice president of facilities and operations, for about two hours. Guizzo said completing construction of the Meadville property is a priority.

"Having a building (not complete) is not something we're proud of," Guizzo told residents. "Not having some of these amenities is not something we're proud of."

The pandemic had a major impact on Calamar.

"We were not prepared for what COVID did to our company — it turned everything upside down," Guizzo said.

The pandemic caused the company to lose some of its construction vendors, who then had to be replaced at a higher cost, as well as drive up the cost of materials.

"Our costs have increased significantly," he said. "To get this building done, we have to work with banks."

It also means raising rents to generate revenue to cover costs to get the building finished.

"To operate, we need to cover those expenses. Unfortunately we're passing them on to you," he said. "These increases are done out of the necessity to get this building built.

"I understand the load you're carrying," Guizzo continued. "We have to show that revenue — we have no option."

Past rent increases — prior to the pandemic at other Calamar sites — had been about 3 percent annually, Guizzo told residents.

However, Calamar has seen about a 9 percent annual increase in its general operation costs since the pandemic, he added.

At Monday's meeting, Hohmann called the 30 to 40 percent increase untenable for the current residents.

"Two to 5 percent is acceptable — it would even be acceptable if it went to a 9 percent under these circumstances that you're talking about, but 30 to 40 percent is unreasonable for people who are on a fixed income," Hohmann told Guizzo. "We need to negotiate."

Guizzo said he would report the residents' concerns to the company, but said he couldn't guarantee a 2 to 5 percent rate increase in the future.

Guizzo admitted the company made mistakes with how it handled notifying the residents about the rent increases. The rent calculations were done in March and new renters coming to the building will pay the increased rates, he said.

"This is not our choice," he said. "We never started this to be a nonprofit or cheap rents, but real value" with the amenities and programming.

Guizzo said an influx of capital is getting Calamar back on track on its projects and construction work will pick up in the coming weeks at Meadville.

On June 6, 2022, WellTower Inc. agreed to buy Calamar's 25-property senior apartment portfolio, which includes Meadville, for $502 million. WellTower is a real estate investment trust specializing in senior housing, post-acute care providers and health systems.

Guizzo said he hoped residents will see the total value of the Meadville facility complex and its amenities when finished.

"What I can control is the value that we give you — that we've done these amenities, done these (amenity) rooms," he said. "The only thing I can do is to show you what we plan on doing in customer service."

Guizzo said the company will work to communicate better with residents.

Keith Gushard can be reached at (814) 724-6370 or by email at .