FOR IMMEDIATE RELEASE: Wednesday, April 16, 2008

CONTACT: Anna Deknatel, 646-452-5637 or 617-448-6585

Speaker-Elect Bass’ "Atria Bill" Highlights Need for Disclosure of Rent Hikes

Concerned Atria Residents, Advocates Speak Out on Need for Legislation Protecting State’s Elderly from Price Gouging

Sacramento, CA—California seniors who feel price-gouged by providers like Atria Senior Living teamed up with advocates and elected leaders to speak out against exorbitant cost increases. Legislation introduced by Assm. Karen Bass (D-Los Angeles) got strong support from Atria residents and advocates who testified yesterday at the bill’s hearing before the Human Services Committee.

"Seniors are not just money-making machines," said Joan Lee, President of the Gray Panthers, during testimony at the hearing. "They are vulnerable persons in the last stage of their lives."

Assm. Bass introduced AB 2370 in February, one of two "Atria Bills" designed to give assisted living residents information on past rent increases before they move into a facility. Assm. Lois Wolk (D-Davis) has introduced AB 2101, a similar bill which also requires facilities to prepare for emergencies lasting up to 72 hours. AB 2101 passed out of the Human Services Committee two weeks ago.

Dubbed "The Atria Bills" by activists, both pieces of legislation address growing resident complaints about Atria Senior Living’s practices. Seniors residing in multiple Atria facilities have complained of rent increases that far exceed the cost of living, while some in Davis and Carmichael suffered blackouts this winter. State law does not require Atria and other assisted living facilities to have a back-up generator.

"I have lived at Atria Covell Gardens for four years, and in that time my rent has been raised by 8% each year," said Louise Heller. "We tried to negotiate with Atria, but were rebuffed."

Average rent increases at assisted living facilities are 4 to 5% a year. However, Atria Senior Living residents have been hit with rate increases up to 11%. Many residents have seen massive increases for two or more years.

Atria is one of the largest assisted living providers in California, with 26 facilities, and is owned by a private equity buyout fund affiliated with Lazard, Ltd., a Wall Street firm managing more than $140 billion globally. Lazard, Ltd. recently announced it had paid its CEO Bruce Wasserstein over $41 million for 2007, plus a 5-year contract worth at least $100 million.