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HomeMy WebLinkAbout02-19-1987 MHRRB Minutes0 TAPE #1 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 ------------------ 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 MHRRB Minutes - 2/19/87 Page 2 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. TAPE *2 TAPE *3 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 MHRRB Minutes - 2/19/87 "age 3 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. TAPE #4 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. TAPE #5 The next issue concerning recreational vehicles was concluded with the finding that it was the purpose and intent of the MHRRB 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.