Two U.S. Senators sent a letter to a real estate owner in Alexandria expressing concerns of tenants at an affordable housing complex. U.S. Sens. Mark Warner and Tim Kaine sent a letter to the CIM group highlighting tenant reports of declining conditions and increases in evictions and rent costs.
“We write to share troubling concerns we have heard from constituents regarding conditions of the Southern Towers apartment complex in Alexandria, Virginia, since your firm, the CIM Group (CIM), took ownership of the property,” wrote the Senators. “Tenants have shared with our offices that, under CIM ownership, they have been subjected to eviction filings during the eviction moratorium, changes in how utilities are billed combined with rent increases that have led to substantial price hikes, and unaddressed maintenance issues that pose health and safety risks.
“Further, tenants have voiced that CIM issued unclear eviction notices indicating that tenants who were late on their rent payments had only five days to ‘pay rent or, alternatively, to terminate lease and vacate premises’ – only mentioning later in the notice that tenants located on a ‘covered property’ as defined by the CARES Act were entitled to a 30-day notice before vacating.”
The Senators urged CIM to quickly address these concerns directly with residents and work with tenants to resolve any outstanding concerns.
The Senators highlighted the need to tackle these issues in the midst of a nationwide affordable housing crisis.
Virginia alone is facing a shortage of more than 170,000 units for extremely low-income households with the supply shortfall particularly pronounced in Alexandria, which lost an estimated 90 percent of its market-affordable units between 2000 and 2017.
“As a federally-backed property, it is incumbent upon CIM to manage Southern Towers in alignment with the Federal Housing Finance Agency’s mission to promote quality affordable housing,” they wrote. “At a minimum, federally-backed properties should be well-maintained and free from health and safety risks and have a responsive management team with transparent rent and utility pricing procedures.
“Moving forward, we urge CIM to meet regularly with tenants to hear their concerns, clearly communicate plans regarding deferred maintenance issues or pricing changes, and work directly with tenants to address issues in a timely manner.”
Kaine, a former fair housing attorney, has long supported efforts to increase accessibility to affordable housing.
Earlier this year, Kaine and Warner announced more than $98 million in federal funding for affordable housing, community development and homelessness assistance throughout the Commonwealth.
A copy of the letter is available here.
CIM Group response
A response by CIM Group was submitted by email Wednesday. Read the full statement here.
“CIM Group has long been a proud member of the Alexandria, VA community as the owner and operator of several properties, including Southern Towers where the firm took over operations in 2020. It was immediately clear to Southern Towers Management that they needed to address years of deferred maintenance and make important quality-of-life improvements to the development including long-overdue roof replacements; renovation of apartments, corridors, and common areas; resurfacing parking areas and tennis courts; new playgrounds and much more.
“While Southern Towers is not an affordable housing community, CIM Group has worked diligently to keep rent 20% below comparable properties in Alexandria, while at the same time, making significant improvements to the habitability of Southern Towers. Residents have always paid a portion of their utilities and continue to be responsible for the costs they incur.
“Southern Towers Management has never violated the CARES Act or any local, state or Federal laws. In fact, CIM Group is legally required to utilize a form provided by the State of Virginia–referred to as a 5-Day Notice–to notify residents when they are in arrears. CIM Group has no control over the language used in the form and any call for modifications should be directed to the State of Virginia.
“Despite much disinformation, Southern Towers Management will not be deterred from their commitment to the community they serve, their legal obligation and the fiduciary duty the company has to investors who have also helped improve the living conditions at Southern Towers from what existed prior to CIM Group’s ownership.”
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Chris Graham
