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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.