In Peekskill, the residents at River Pointe at Drum Hill on Ringgold Street are experiencing a dreaded sense of deja vu with the second consecutive year of 8.4% rent increases imposed by the building’s owner, Conifer.
A senior renting a one-bedroom apartment, with an income limit of $54,700, paid a monthly rent of $1,075 in 2023. Now, after the two 8.4% rent increases, that same senior will pay $1,262 a month beginning on Dec. 1, 2025.
The result is someone who paid $12,900 in rent annually two years ago will now pay $15,144, taking another $2,244 out of their yearly income. [Tenants also pay a monthly utility surcharge ranging from $88 to $124 depending on the size of their unit.]
One current tenant expressed concern about what the future might hold for building residents.
“It’s gonna be pretty bad,” Mary Cohen told the Peekskill Herald. “For the time being I’ll be okay but the reality is they’re gonna do it again, and we know they’re gonna do it again.
“There are people in the building that are unhappy with it and scared about what’s going to happen to them. Are they going to get priced out eventually?”
State law allows annual, big rent hikes
The rent increase at River Pointe at Drum Hill is permissible under the state and county laws that oversee the project. Rents can be increased once a calendar year regardless of when a lease is signed.
Reached by the Herald, Dave Lanzillo, VP of Marketing and Communications of Conifer LLC, said, “We’ve been committed to keeping rent increases within industry standards. In fact, prior to this year, we have only increased rents at River Pointe one time since 2022 and our rents are very much in line with comparable communities.
“Despite the recent increase, the current tenants will only pay an average of 79% of maximum allowed LIHTC [low-income housing tax credit] rents. While an increase is challenging, we’ve worked diligently to keep it as low as possible while ensuring we can maintain the quality and services our residents expect.” [By law, Conifer is able to increase the rent on a one-bedroom at 50% of AMI (area median income), to a maximum of $1,465].
Local, state, federal, nonprofit and private sources funded River Pointe at Drum Hill. Westchester County provided $860,000 of HOME funds for part of the construction and $1.3 million from its Housing Implementation Fund for infrastructure improvements during construction.
Additional funding was provided by the New York State Division of Housing and Community Renewal, $7.865 million; Federal Home Loan Bank, $344,000; First Niagara Bank, $1.75 million; New York State Energy Research and Development Authority, $100,000; New York State Housing Trust Fund, $1.725 million; and an equity contribution from Conifer Realty, LLC., $484,500.
This second straight year of 8.4% rent increases at River Pointe does not exceed the amount allowable without state approval. “This rent increase does not exceed what would trigger a review or approval by HCR, which is OCAF + 3%,” a spokesperson for the state Department of Homes and Community Renewal (DHCR) told the Herald.
Owners of Housing Trust Fund Corporation-financed projects such as River Pointe may implement rent increases based on HUD’s Operating Cost Adjustment Factor (OCAF) + 3% if the increase does not exceed the restricted program rents for the tax credit project, and tenants are provided with the appropriate advance written notice (30, 60 or 90 days based upon lease term), according to the DHCR spokesperson.
Owners may use the higher of either the current OCAF or the prior year’s OCAF. In this case, 2024’s OCAF was 5.4% for New York, so the maximum rent increase a project can implement in 2025 is 8.4%.
Residents raise other issues, Conifer responds
In addition to concerns by the rapid increase in rents, several residents who contacted the Herald raised issues about conditions in the building.
The problems reported include inadequate air-conditioning on upper floors, security cameras not working properly, problems with the entrance intercom system that allows residents to admit visitors, hallway lights at exit doors and broken railings on patios. Lanzillo said Conifer is aware of these problems and is addressing all of them. The firm is working to upgrade the 15-year old emergency pull systems in bedrooms and bathrooms.
According to one River Pointe resident, the only elevator in the building was out of service four times during the summer. Lanzillo told the Herald, “Due to heavy use, the elevator does need to be taken offline periodically, and in those instances, we work with our third-party supplier to address any issue as quickly as possible – typically the same day unless parts need to be ordered.”
Three other issues raised concern regarding a computer room for residents, an onsite medical office, and wind noise from apartment windows.
Lanzillo said Chromebooks are available for residents to check out and that excessive noise from high-wind areas is being addressed.
The medical office use was ended by Conifer. “When the community opened we partnered with Peekskill Preservation for occasional health education classes,” said Lanzillo. “This agreement was for 15 years and has not been renewed. The office is still used for other resident health resources [including vaccines] and was never meant to provide full-time healthcare.” The building has 43 units and was built in 2010.
Conifer personnel have been working with Verizon on a system upgrade to provide faster Internet service that will be implemented in the next few weeks, according to Lanzillo. “We’ll communicate specific plans and timing to our residents,” he said.
San Francisco investment firm owner of the property
Conifer Realty, LLC, the owner of Drum Hill at River Pointe, is an affiliate of Belveron Partners, a privately-held investment firm focused on the creation, preservation and revitalization of affordable and workforce housing throughout the United States. Privately-held Belveron is based in San Francisco and held assets under management estimated at $1.3 billion as of March 31, 2025.
The company was named the sixth largest owner of affordable housing in the nation by Affordable Housing Finance Magazine (AHF) for 2023.
The firm has a portfolio of over 30,000 affordable homes across 14 states and the District of Columbia. Belveron’s directly-owned portfolio includes a smaller, but still significant, number of units. Their impact report from December 31, 2023, showed 15,584 units in their directly-owned portfolio,
“We value our residents and are committed to working with them to ensure River Pointe remains a wonderful place to call home,” Lanzillo said.
