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Rent increase delayed, but veterans say they'll still have to leave Armed Forces Retirement Home

Sun Herald - 7/27/2018

July 26--A delay in the Armed Force Retirement Home rent increase won't be enough relief to keep some veterans from moving out.

The increases of up to $1,500 a month, which are based on the gross income of the residents, were due to go into effect Oct. 1.

Instead, a reduced increase will go into effect Jan. 1 with the full increase phased in over three years. The rent for people in independent living will rise from 40 percent of income with a maximum of $1,458 to 48 percent of income with a maximum of $1,990 on Jan. 1. By 2021, the rent will be 60 percent of gross income with a maximum of $3,054.

The most vocal critics of the increase are not appeased.

"I think our voices were heard," said Phil Ford, a former president of the Resident Advisory Council who wore a visitor badge to the meeting where the new rates were announced Thursday at AFRH Gulfport because he has moved into a rental home in Long Beach. "But a 33 percent increase is still a big increase."

The AFRH has been funded in part by a trust fund, but that fund has been depleted by previous administrations and because during the past two years Congress has added about $20 million to the AFRH budget.

The new plan calls for maximum $500 increase in each of the next three years.

"I've been working with the Armed Forces Retirement Home officials and speaking with residents to find a better solution since day one. I'm very pleased to see that steps are being taken to provide relief for the residents," said Rep. Steven Palazzo, R-4. "The language included in the (National Defense Authorization Act) protects these residents from drastic increases taking place in the next year, and makes way for new avenues to accrue funding needed to ensure the AFRH continues to provide suitable living arrangements and care for our veterans."

Palazzo and the rest of the Mississippi delegation: Reps. Trent Kelly, Gregg Harper and Bennie Thompson also voted for the bill.

The conference report on the NDAA passed the House 359-54 on Thursday. That NDAA still needs Senate approval and President Donald Trump's signature before it's a done deal.

Robert Guenther, who is weighing either moving or filing for bankruptcy in hopes of reducing his rent, said the new plan could make his situation worse.

"With a $500 increase, I won't be able to file for bankruptcy," he said. Like Ford, Guenther is sort of rolling the dice, hoping they can move out, can pay down their debts then move back in before a debilitating illness or the need for more care makes them ineligible. Consumer debt is the main reason neither of them can afford the rent increase because that debt isn't taken into consideration when calculating their rent.

Retired Maj. Gen. Stephen T. Rippe, the chief executive officer of the homes, said the increase reflects the actual cost of the services provided.

He said the homes are like a long-term care insurance for the residents. Once in the home, a veteran can live independently, have a minimum amount of care, have assisted living, long-term care and memory support. In all those levels of support, the veteran pays on a sliding scale based on percentage of income. Some veterans say they canceled their long-term care policies after moving in.

Those who move are taking a big risk, he said.

"At $3,054, if I'm a high-income resident, this is a bargain. I'd take that in a heartbeat," said Rippe. "You don't have to worry about long-term care insurance and we're going to take care of them as they move through the later stages in life. So, if I'm a $40,000 a year (in income) resident, by the time I'm in long-term care, we're subsidizing that resident over $95,000 a year.

"We're a bargain and we're proud of it because we take care of our residents whatever their income level is."

Paul Hampton: 228-284-7296; @jpaulhampton

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