HomeMy WebLinkAbout02-19-1987 MHRRB Minutes0
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city of sAn lois oBispo
990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403-8100
M I N U T E S
MOBILEHOME RENT REVIEW BOARD
FEBRUARY 19, 1987
I. WELCOME/INTRODUCTIONS
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Chairperson Pat Barlow declared the regular meeting of the
Mobilehome Rent Review Board come to order at 1:30p.m. with the
following in attendance:
BOARDMEMBERS: Barlow, Grden, Label, Wheeler, Wright
STAFF: Henderson, Kemper
Ii. APPROVAL_OF_THE-MINUTES_OF_FEBRUARY_5,_1987
The minutes of the meeting of February 5, 1987 were approved as
mailed. Chairperson Barlow requested that the Board direct staff
to "clean up the language" of the Vancancy Decontrol motion made
at the previous meeting when the Board sends its recommendations
to the City Council. Staff was so directed.
III. REVIEW_OF_THE_PACKET
Mr. Henderson reviewed the packet presented to the Board, which
included: 1. minutes and agenda; 2. memo from HRC staff to
Chairperson Barlow, re: income eligibility levels concerning
Housing Authority rental assistance programs; 3. reports from
Boardmembers Barlow and Grden, re: trip to City of Lancaster to
research their experience with mediation and arbitration; 4. info
packet forwarded to Board, re: changes in the law affecting
mobilehomes/residents.
IV. CONSIDERATION_OF_ADJUSTMENTS_TO_THE-RENT_STABILIZATION-ORDINANCE
The Board picked -up from where it concluded at the last meeting
regarding the issue priority list. The Board began discussing
methodologies, particularly the Maintenance of Net Operating
Income formula. Staff recommended to the Board this formula, but
cautioned them against recommending to the Council a strict
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Minutes - 2/19/87
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IV. CONSIDERATION_ OF ADJUSTMENTS_ TO THE RENT_ STABILIZATION_ ORDINANCE
(continued)
interpretation of this formula. Staff also suggested that the
Board reject the concept of mandating the use of a single formula
in determining a fair and reasonable rate of return.
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Mr. Jim Buttery, atttorney for various local park owners,
addressed the Board concerning the M.N.O.I. formula. Mr. Buttery
said he could support the general methodology of the formula if
used with a certain degree of flexibility. He favored the idea of
the "semi-automatic" pass thru of certain actual cost increases
to the residents of a park. This way, he reasoned, park owners
would not have to come to the Board with a "harshship"
application every time their (park owners') operating costs
increase.
The Board, by consensus, directed staff to develop language
recommending to the Council that they incorporate the M.N.O.I.
formula, with flexibility, into the Rent Stabilization Ordinance.
The next issue to be discussed by the Board was long-term leases.
By consensus, the Board decided not to discuss the issue directly
because they felt much time would be spent without success. It
was the Board's feeling that a more constructive approach would
be to stimulate the signing of long-term leases in an indirect
manner. That is, the Board seeks to modify policies which they
find to be inhibitors to long-term leases.
A third issue to be discussed was the concept of a new formula of
"tenant rent stabilization based on need." Such a plan would
involve implementation only after a certain percentage of the
residents of a given park are on long-term leases. If such a
provision was met, then only those residents who meet the income
eligibility requirements would be protected or subsidized regard -
their space rent. The Board asked questions of Mr. George Morlin,
Executive Director of the Housing Authority of the City of San
Luis Obispo. Mr. Morlin explain the various programs (Section 8
and voucher) provided by his agency, and stated that a
significant number of vouchers were available for mobilehome
residents.
The fourth item to be discussed by the Board was the issue of a
utilities consumption allowance. Staff recommended to the Board
to develop language to tie the water allowance and metering to
the existence of long-term leases. The Board opened up the
discussion to public comment. Four (4) speakers addressed the
Board: 1. Mr. Dennis Law; 2. Mr. Ed Evans; Ms. Kay Morris; and 4.
Dick Clark. The first two speakers own or represent mobilehome
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Minutes - 2/19/87
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IV. CONSIDERATION_ OF ADJUSTMENTS -TO -THE_ RENT_ STABILIZATION_ ORDINANCE
(continued)
parks and the other two speakers are park residents. The Board
reached a consensus supporting the breaking -out of utilities.
Staff asked the Board how they felt about a conversion in parks
from Sonic Cable T.V. to satellite services. The Board had a
number of questions which can only be answered as more specific
data becomes available. The Board suggested that the tenants
assert their right to meet and confer with the owners, and thus
the parties may attempt to come to agreement as to how this issue
should by handled. It was also suggested that the residents take
a survey among themselves to conclude the type of service and
channels which they favor regarding television reception.
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The next issue to be discussed by the Board was idea of
contracting with an accountant or financial analyst who could aid
the Board in deciphering and forming conclusions about complex
financial data which arises in the application hearing process.
Staff noted that the county contracts with a C.P.A. to meet their
needs in administering their rent stabilization ordinance. No
final conclusions were drawn, nor recommendations made, concern-
ing this issue.
The Board took a 10 minute break from 3:40 - 3:50p.m..
The sixth issue to be addressed by the Board concerned CPI
timing. That is, the specific determination as to how the auto-
matic (annual) inflation factor shall be applied. Although the
Ordinance states that an inflation factor cannot be applied more
than once in a twelve month period, some argue that this does not
preclude a park owner from passing on an inflation adjustment
twice in a twenty-four month period, if the owner chooses to do
so. At an earlier meeting, the Board concluded that the intent of
the ordinance was for parks to pass -on the inflation increase to
space rent at annual intervals. The Board will be recommending to
the Council a modification to the Ordinance reflecting this
intent, specifying the inflation factor to be passed -on to
residents every twelve months or not at all.
The CPI timing issue evolved into a discussion concerning the
proper amount or percentage (75% or 100%) of the CPI that park
owners should be allowed to apply to their space rents. Two park
owners and three park owner representatives spoke in favor of
modifying the Ordinance, which presently allows 75% of the CPI,
to allow 100% of the CPI to be applied to space rents. The Board,
by consensus, continued the issue to the next meeting.
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The next issue concerning recreational vehicles was concluded
with the finding that it was the purpose and intent of the
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Minutes - 2/19/87
'age 4
IV. CONSIDERATION_ OF ADJUSTMENTS_ TO THE RENT_ STABILIZATION_ ORDINANCE
(continued)
Ordinance to protect recreational vehicles also. The Board will
be recommending to the Council that the Ordinance be modified to
make it clear that the intent of the Ordinance was to protect
spaces, and thus recreational vehicles.
The last issue to be discussed was that of new approaches. The
Board is considering mediation and arbitration as methods to
solve problems arising in the administration of the rent stabili-
zation ordinance. Recently, Boardmembers Barlow and Grden took a
field trip to the City of Lancaster to talk firsthand with
various officials there to gain insight and feedback concerning
the success of their mediation/arbitration programs. Each Board -
member reported on their experience and information gained from
the endeavor.
V. ADJOURN
The meeting adjourned at 5:00p.m.. The next meeting was scheduled
for Thursday, March 5, 1987, at 1:30p.m. in Hearing Room #9.