A 105-unit apartment complex in South Burlington has been purchased by a local nonprofit with an aim toward keeping rent low and affordable.
The Champlain Housing Trust announced on Wednesday the acquisition of Dorset Commons, a 15-acre property located near South Burlington High School.
Michael Monte, the chief operating and financial officer, said the overall cost to the trust is more than $13 million, including set-up costs, such as initial renovations. He declined to provide the exact sale price.
The shaded, tree-lined parcel is a cluster of apartment buildings around a quad with brown wood siding. Dorset Commons was originally built in the 1970s and sold by Catic Exchange.
Monte said the housing trust decided to purchase the property to maintain affordable housing in Chittenden County. The organization has almost 3,000 homes under its care, including 2,300 apartments, and serves Chittenden, Franklin and Grand Isle counties.
“Our purpose here was sort of to secure the property and make sure it didn’t go the way of other properties in the area that have been sold,” he said.
The purchase was financed by TD Bank, along with the Vermont Community Foundation, Vermont Treasurer’s Office Local Investment Program, and an equity grant from the Vermont Housing and Conservation Board.
“All Vermonters deserve safe and affordable housing options,” state Treasurer Beth Pearce said in a statement. “The Treasurer’s Office is committed to working with our partners, like Champlain Housing Trust, to identify capital gaps and leverage State dollars to fill the need and improve Vermonters’ quality of life.”
The greater Burlington area has recently experienced a number of low- and middle-income housing complexes being demolished for new development, or renovated, pricing out tenants.
Larkin Terrace in South Burlington, near Palace 9 cinemas, was torn down for new apartments. Monte said the Old North End of Burlington has seen significant rent hikes at scattered locations. In 2014, Green Meadows Apartments in Essex saw rents skyrocket after renovations. Some parts of the property have been torn down to make way for new, higher-income development.
Renovations that increase prices, such as new fixtures, appliances and granite countertops are another factor driving up rents.
Monte said Dorset Commons wasn’t experiencing any immediate risk of sale or renovations. The property fills a niche between very affordable low-income housing and middle-income, noting that rent is slightly higher than other trust properties.
“What we’re trying to do here is to secure the current rents at current values, because they’re currently modest, rather than an investor coming along and purchasing it, renovating it and raising the rents,” Monte said.
Residents will all have their leases honored and only see small rent changes as the cost of living increases. New management and maintenance staff have already been on-site to meet residents, according to the trust.
“The demand on housing we have available is extremely high and we can’t come close to meeting the demand on a monthly basis,” Monte said. “It’s a very tight market for affordable housing at this point.”
