Dearborn Mayor Abdullah Hammoud (fourth from left) announces a proposed rent increase for O’Reilly and Sareini manors, which are senior high rises, during a March 19 mayoral briefing to the City Council.
By SUE SUCHYTA
Times-Herald Newspapers
DEARBORN – Mayor Abdullah Hammoud asked the City Council to increase the rent for John B. O’Reilly Jr. and Suzanne Sareini manors, both senior high rises, during a March 19 mayoral briefing.
The matter will come before the council at its 7 p.m. March 24 meeting.
The two buildings, which are not considered low-income housing, have not experienced a rent increase since 2019, with the maximum current rent $592, which includes utilities, Hammoud said.
The proposal would establish a $100 rent increase for all current residents, and establish a $792 monthly rental rate for all new residents, with a recurring 5 percent annual rent increase.
Hammoud said that due to inflation and rising operational costs, the senior high rises are operating at a deficit, and the adjustment is needed to ensure the long-term solvency of the Housing Division and the safety of the facilities.
He said there is an anticipated funding gap of $944,608 for the 2025-26 budget year.
“We currently run close to a $1 million deficit on an operational perspective for these two buildings,” he said. “Our hope is to try to close this out and try to get close to zero, and the way to do that is to move rents from $592 to $692 for existing tenants, $792 for all new tenants who have never lived inside the buildings.”
Hammoud said these are not low-income housing units like the federal buildings, which currently base rent on 30 percent of a person’s income, up to $1,100 a month.
“These units have a lot of high earners and such, but we still want to be cognizant of what we are doing, so I pulled the numbers going back 20 years,” he said. “Since 2008 to now there has only been a 10 percent rent increase, and inflation for this time period has been 47 percent.”
Dearborn City Council members listen to Mayor Abdullah Hammoud’s proposal to increase rent for O’Reilly and Sareini manors, which are senior high rises, during a March 19 mayoral briefing to the council.
Hammoud said the Social Security cost of living increases for the same time period is 48 percent.
He said DTE bills have gone up 112 percent during this period, while water rates have increased more than 200 percent.
“So, we’re are asking for 17 percent this one time, with a 5 percent inflation, and the reason we do that is 3 percent on the rental side and 2 percent on the water-sewer side plus utilities,” he said.
Hammoud said utilities are asking for another 4.5 percent increase, and water and sewer from the Great Lakes Water Authority is asking for increases as well.
“This just helps us stabilize,” he said. “Over a matter of two years we can close down the operating revenue to break even, which still leaves an infrastructure deficit of how do we update these buildings.”
Hammoud said the city is pursuing some larger grants to overcome what they think is some $16 million in infrastructure needs for the two buildings.
He said the city has held meetings with the building residents, who said they prefer one increase over a phase-in.