HomeMy WebLinkAbout03-05-1987 MHRRB Minutescity of san lois osispo
-MANI!
MIN
990 Palm Street/Post Office Box e,00.San Luis Obispo, C.s„03a.00
MINUTES
Mobile Home Rent Review Board
March 5, 1987
I•
WELCOME/INTRODUCTIONS
The meeting of the Nobileh❑me Rent Review Board was called to
order at 1:qS p.m by Chairperson Barlow with the Following in
attendance:
MEMBERS: Barlow, Grden, Label
STAFF: Henderson, Gugre-Powell
II. REVIEW OF PACKET
Steve Henderson reviewed the Board's packet, including: agenda,
minutes, memo to park owners on CPI timing, an article from the
Lqs Angeles Journal March 3, regarding the San Jose rent law.
II MINUTES OF FEBRUARY 19
The Board made the following changes to the minutes: That it be
clarified that Boardmember Wheeler asked the park ownersand WMA
representative if they were aware of any subsidy program
that
th
ey r-culd support, and if so, could they bring information to
the next meeting. They said they would d❑ s❑. On Page 3,
Paragraph 5, that it be added that Kay Morris asked that
percentage of the CPI be continued to the next meeting, since
residents were not prepared to comment on it. on page 3,
paragraph 1, that it be clarified that the Board had consensus
not to tie the utility issue to long term leases, and that the
term "breaking out” referred to separating charges for utilities
From the base space rent, contingent upon a reduction in that
space rent.
I U . CONSIDERATION ..._.._OF ADJUSTMENTS TO THE RENT STAB I L I ZATi ON ORDINANCE
..... ......... ... ------
r-
..
....._._....__._......._ _ .
George M❑yland, Executive Director- of the Housing Authority,
spoke about the subsidy program For mobilehome owners. He said
that it was underutilized, and that the reason for that was not
entirely clear. David Evans OF the Westerm Mobilehome Association
spoke to the concept of a park❑wner subsidy to the existing
Mobilehome Rent Review Board
Minutes/March 5, 1987
Page 2
r'`PE #2
Section B program with the fund being administered by the Housing
Authority, who would establish eligibility. He suggested using
the Section B guidelines For income eligibility, as they
represented an accepted community guideline.
In response to Boardmember Label's questions, Mr. Evans said that
he'd like to see the program attempted on a voluntary basis, at
first, and if that didn't work, perhaps a City assessment on park
owners would be necessary. He described a program in Yukipa.
George Moyland said he would administer the program with the
interest From the First year's fund. He said that perhaps it
would be necessary For tenants to be surveyed to understand how
many would be interested and/or eligible for subsidy. There was
discussion around the required one year lease that the Housing
Authority requires that tenants enter into in order to receive
subsidized assistance.
It was the consensus of the Boardmembers present that this
concept be brought in Front of the Full board as a part of its
overall package.
Kay Morris spoke against increasing the percentage of the CPI
allowable as a rent increase. Earl Cleister spoke of the 75%
figure as an incentive to negotiation between the tenants and
park owners. Dorothy Lightfoot objects to compounding the CPI
annually. Leigh Willard recalled that the 75% figure was
established during a time of double digit inflation.
Boardmember Grden indicated that he favored a sliding scale CPI
based on the prevailing CPI Figure. He commented that owners were
Falling behind economically, and that was why there were so many
applications. He proposed a sliding scale: Where inflation is
1-3%, 100% of the CPI would be used; q-5% inflation, 80% CPI;
6-10% inflation, 75% CPI; 10% inflation or above, 66 2/3% CPI.
Boardmember Label said that he would not favor 100% of CPI in all
cases, and that he was in Favor of a sliding scale. He was not,
however, what scale he would propose.
Chairperson Barlow indicated her agreement with both the concept
of the sliding scale, and Boardmember Grden's proposal.
It was the consensus of the Board that staff present a
recommendation that a sliding CPI scale be adopted rather than a
Flat 7S% Figure.
Mobile Home Rent Review Board
Minutes/March 5, 1987
Page 3
TAPE #3
TAPE #4
Chairperson Barlow described the trip to Lancaster, and the
ordinance's provisions for arbitration. She described the process
that the ordinance mandates the parties participate in prior to
going to arbitration. She answered some questions, and staff
noted that the ordinance was available for inspection at the City
Clerk's office.
Dennis Law, attorney for Silver City, made favorable comments
about the concept of the Lancaster ordinance. He favored
particularly the requirement that tenants be represented by a
representative group, that the process was shorter, allowed for
Formalized negotiations, and a step-by-step description of the
process is known by all parties. He felt that perhaps an
allowance for an appeal to the full Board might be necessary.
Chairperson Barlow said that she'd like to see the City go beyond
the state requirements for notification of the tenant's
association is a park is for sale. An intact association, as
suggested by the Lancaster ordinance, would facilitate that.
Kay Morris indicated she'd favor the concept of the ordinance.
David Evans favored a blend of the Lancaster ordinance and a
subsidy program.
Chairperson Barlow read the "relevant factors" from the Lancaster
ordinance, and stated that owners and tenants alike thought those
factors were appropriate. Boardmember Label said he was
encouraged with the new direction of this ordinance, but was
concerned with a phasing in process. Boardmember Grden said he
favored the Lancaster model, and wouldn't like to see a drawn out
}chasing program. He would strongly recommend that an ordinance
similar to Lancaster's he adopted. Chairperson Barlow recommended
the adoption of a Lancaster type ordinance with timing mechanisms
perhaps adjusted, and with a provision that the owners must
notify tenants of a pending sale of the park.
It was the consensus of the Board to recommend to the Council
that an ordinance similar to Lancaster's be considered as part of
the Board's package.
The Board took up discussion of a letter from Leola Rubottom and
Paul Beavais regarding changing the current ordinance's language
to reference fair return on investment rather than on property.
Roger Picquet, City Attorney, commented on the possibilites that
this change might bring about. Dennis Law spoke against that
change. Boardmember Label indicated that he felt that there were
problems changing the language.
Mobile Home Rent Review Board
Minutes/March 5, 1987
Page Lf
Jim Buttery, attorney for park owners, made comments on the use
of the MNOI formula, urging flexibility in its application. He
Favored more flexibility in the ordinance, or the Lancaster
approach. He thought a combination might require mediation prior
to coming to the Board.
Chairperson Barlow initiated mention of the surcharge definition,
and asked staff to define it.
U. ADJOURN
The next meeting of the Mobile Home Rent Review Board will be
March 19, and the Board will review its progress. Town Hall
meetings will be established on March 26 at two mobilehome parks.
The meeting adjourned at q:15 p.m.