HomeMy WebLinkAbout03-19-1987 MHRRB MinutesII.
III
IV.
city of son lois oBispo
990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403-8100
MINUTES
Mobile Home Rent Review Board
March 19, 1987
WELCOME/INSTRUCTIONS
The meeting of the Mobile Home Rent Review Board was called to
order at 1:'10 p.m. by Chairperson Barlow with the Following in
attendance:
MEMBERS: Barlow, Grden, Label, Wheeler
STAFF: Henderson, WohlFord
REUIEW OF PACKET
Steve Henderson reviewed the Board's packet, which included the
agenda, minutes, staff report concerning proposed revisions to
the ordinance, and an article From the L_os Angeles Daily Journal,
March 12, 1987, regarding possible State Legislation to overturn
rent controls.
MINUTES OF MARCH 5
The Board made the Following changes to the minutes: That it be
acknowledged that the word "sure" was omitted From page 2,
paragraph 7, sentence 2, C ... He was not sure, however,...). On
page 3, paragraph 5, Chairperson Barlow also indicated a desire
to include a phrase which would recommend that park owners agree
to arbitration within a reasonable time frame. The Board asked
for the minutes to refer back to the Lancaster report. The
minutes were approved as amended.
CONSIDERATION OF ADJUSTMENTS TO THE RENT STABILIZATION ORDINANCE
Chairperson Barlow stated that the subcommittee, which included
herself and Vice -chair Grden, discussed the procedure For the
meeting. It was the recommendation of Uice-chair Grden to
discuss the staff report item by item. The Board agreed by
consensus to proceed in this manner.
Chairperson Barlow identified two interesting comments made
concerning the process For the current ordinance. First, the
Mobile H❑me Rent Review Board
Minutes- Narch 19, 1987
Page 2
current ordinance does not provide any means for mediation before
the formal hearing begins. Second, the Board must determine what
a base rent is, and if that base rent is really reflective of
what the market rates were.
Boardmember Label identified two major issues before the Board.
The first issue is what the Board is proposing for the Rent
Control ordinance as it exists now and what possible changes the
Board is thinking about. The second issue is the new approach
and what other possibilities might exist f❑r handling disputes in
the future. He also stated that he did not feel that it made
much difference which order the issues were discussed. The Board
agreed by consensus that the order of discussion of the issues
was not important.
The Board discussed the CPI issue. Boardmember Label said that a
sliding scale would be more equitable in some instances. He
recommended leaving it an open issue by not inserting actual
numbers. He suggested leaving the actual figures up to
negotiation between the owners and tenants.
Boardmember Grden stated that the Board should completely change
the wording of the ordinance recommendation to make it clear to
the City Council what the Board intended.
Steve Henderson encouraged the Board to make a recommendation as
an advisory body. Boardmember Wheeler agreed that the Board
should make a firm recommendation to the City Council.
Chairperson Barlow recalled that one of the major factors that
was testified before the Board was that the 75% of CPI aspect of
the sliding scale deterred some people from signing leases. She
also advocated making a specific recommendation to the City
Council.
MOTION: "Thatthe Board recommend that the City Council adopt
the sliding.. CPI formula based on 100% increase up to S% of CPI
and over S% of CPI be at 75e." (Grden, Wheeler) This was the
first formula listed in the Staff Report with no changes as it
was written. The Board discussed the m❑tion. Boardmember Grden
hoped that it would prevent increases from coming in front of the
Board, and felt it would also protect the tenants from abuses and
high inflation. Boardmember Wheeler demonstrated the two sliding
scale formulas with a hypothetical situation on the chalkboard.
Tape #2
Boardmember Wheeler came to the conclusion that the two sliding
scale models were not much different, but the first model was
easier to work out.
Mobile Home Rent Review Board
Minutes- March 19, 1987
Page 3
A voice vote for the motion was taken with the following record:
AYES - 3, NAYES - 1. Motion carried.
The Board wished to communicate to the City Council the basic
reasons for favoring this model. Chairperson Barlow felt it is
understandable. Boardmember Wheeler stated that it is equitable
and simple to administer. Boardmember Grden stated that it
addresses the problems that the Board has been encountering.
The Board took up discussion of the Safe Harbor concept.
Boardmember Label was concerned about protections for the
remaining 1/3 of the residents who are not on a long-term lease.
Jim Buttery claimed that state law will protect them for 12
months.
The Board discussed the Section 8 program, and the possible
effects of the proposals on this program.
MOTION: "That the Board recommends the Safe Harbor concept to
the City Council with a factor of 66 2/3 percent of the tenants
being under lease and the Board would also recommend that in
determining along -term lease a lease with the local H.U.D.
office would be .counted toward the 66 2/3 percent factor of Safe
Harbor." CWheeler, Grden) A voice vote was taken with the
Following record: AYES- 2, NAYES- 2. Motion failed.
The Board then agreed by consensus to reconfirm the original
recommendation.
Upon Boardmember Grden's suggestion, the Board agreed to change
the 66.66% number to 66.67%.
The Board discussed the Vacancy Decontrol/Change of Occupancy
issue. The Board agreed by majority to submit the original
recommendation to the City Council without any further changes.
The Board took up the Recreational Vehicles issue. Chairperson
Barlow stated that the intent of the recommendation was to
protect spaces that may contain recreational vehicles when they
are used as a residence, as opposed to recreational vehicles that
are in storage; and this last part should be added to the
recommendation. The current ordinance says that a space occupied
for twenty C20) days is protected and stated law says nine C9)
months. The Board decided to leave any determination to the City
Council. The Board agreed by consensus to submit the
recommendation concerning recreational vehicles with the change
suggested by Chairperson Barlow.
The Board discussed its request for additional staff support.
Mobile Home Rent Review Board
Minutes- March 19, 1987
Page If
Tape #3
Tape #q
Steve Henderson informed the Board that the recently submitted
budget for the next two fiscal years includes requests for
allocation for additional staff support, as well as a financial
analyst/accountant. The Board agreed by consensus to endorse the
recommendation to the City Council.
The Board discussed the Water/Utility Allowance issue.
Chairperson Barlow stressed the meet and confer process. The
Board agreed by consensus to adopt the recommendation to the City
Council.
Chairperson Barlow read aloud the Tenant Rent Stabilization Based
.on Need recommendation.
M❑TION: "That the Board delete Rent Stabilization Based on Need
From the recommendations to the Citw Council." CWheeler, Grden) A
voice vote was taken with the following record: AYES -'l, NAYES-0.
The Board discussed the recommendation concerning Fair and
Reasonable Rates of Return. For clarification purposes,
Chairperson Barlow suggested switching the order of the second
and third paragraphs in this section. She also wanted to point
out that there are many different ways of calculating MNOI. The
Board agreed by consensus not to recommend any particular method.
The Board decided to determine a base year for MNOI.
MOTION: "That the base year_ for._sr'
uposes of MNOI be the
computations for the year ending December 311 198_1." [Barlow,
Wheeler) A voice vote was taken with the following record:
AYES -'l, NAYES-0. Motion carried. The Board further agreed by
consensus that the date also applies to new owners.
The Board agreed by consensus to leave the Leases recommendation
as it stands.
The Board took a 1S -minute recess from 3:30 - 3:qS p.m.
After the Board reconvened, there was some discussion about the
time frame For mediation, and whether or not the meet and confer
provision in the Civil Code is adequate. The Board decided not
to make any recommendations.
Boardmember Wheeler suggested adding to the ordinance a statement
which would encourage or mandate mediation prior to bringing an
application before the Board.
MOTION: "That in the case of a rent increase, tenants must
respond regues_ti_ng_mediation within ten C10) days by indicating_
that there is a ma orit that disagree and want to meet and
confer within ten C10) more dans and no
later
than twenty_ (20)_
da s after_a rent increase has been=Posted, and only in cases
which exceed the ordinance." CGrden, Label) A voice vote was
taken with the following record: AYES -`f, NAYES-0. Motion carried.