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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.