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| | Email this article • Print this article | Park Street residents speak in opposition of assisted living
By Sheryl Williams
More than 20 residents of the Park Street Apartments were present for discussion of the impending changes to their building during the Cannon Falls city council meeting on Thurs., June 5.
Resident Michelle Spencer stated that owner John Bergstad has elected to terminate his contract to provide what is known as "Section 8" housing, 30 years into the original 40-year contract. Section 8 is a federal housing program that provides housing assistance to low-income renters. Bergstad's contract for Park Street Apartments was supposed to expire in 2018.
Residents were notified by letter in October 2007 of the intended actions upon contract expiration on October 20, 2008. However, according to the residents, there was no mention of the building being converted to an assisted living facility, or of a proposed rent increase to $1,895 per month.
According to residents Helene Porter and Char Borgschatz, they were encouraged to use whatever means available to qualify for assisted living. Many residents felt they were not eligible for the higher level of care and that this would constitute fraud. "Assisted living takes away your dignity," said Porter, "it's like a prison." Borgschatz added, "[Currently] I don't have to sign in and out. Everybody watches out for each other." "This will put at least 25 people out on the street, several at least 90 years old, including one 96-year-old," said Spencer.
According to Lindsey Twin of HOME Line, an affordable housing advocacy association, under current legislation Bergstad has the right to "opt out" of the contract after 20 years. However, according to Twin, provisions in the existing contract may have been violated, including proper marketing of all available units and incorrect information included in the tenant impact statement of October 2007.
HOME Line is assisting residents with researching potential legal ramifications as well as housing options, "but there are waiting lists everywhere," said Spencer.
Twin indicated that several agencies are interested in purchasing the property and maintaining its Section 8 status, including the Southeast Minnesota Multi-County Housing and Redevelopment Administration, the Community Housing Development Corp., and Three Rivers Community Action. When asked whether residents could use their vouchers in another building, Twin said, "Goodhue County has a $415 rent cap. Residents would need to pay the difference."
Twin suggested that, as a significant stakeholder, the city approach the Minnesota Housing Finance Agency, which monitors the Section 8 program, with its concerns and/or try to pressure Bergstad to either stay in the program or sell the building.
Following more than an hour of discussion, the council voted to direct the city administrator to draft letters to the agencies involved indicating the city's position, that affordable housing is needed for elderly and disabled Cannon Falls residents.
Residents also indicated that significant remodeling of the building would be taking place prior to its conversion to assisted living. City administrator Aaron Reeves stated he will check with the building inspector regarding any permit issues.
The council also encouraged the Share and Care Foundation to work with agencies and local housing providers, such as Stonehouse, Shepherd's Center, and Freeborn Manor Apartments, to develop a listing of affordable housing options.
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