body,date,page,text,path
RentReviewAdvisoryCommittee,2016-12-05,1,"Approved Minutes
December 5, 2016
Minutes of the Regular Meeting of the
Rent Review Advisory Committee
Monday, December 5, 2016
1. CALL TO ORDER AND ROLL CALL
The meeting was called to order at 6:35 p.m.
Present were: Chair Sullivan-Sariñana; and Members Griffiths, Friedman, and Schrader.
Absent: Member Vice-Chair Landess
Vacancy: None
RRAC Staff: Jennifer Kauffman
2. AGENDA CHANGES
a.
Staff recommended that items 7-B (Case 583), 7-C (Case 584), 7-D (Case 590), 7-E (Case
591), 7-F (Case 593), and 7-G (Case 595) be addressed first because tenants for the listed
cases were not present. Approved by unanimous consent. Motion and second (Schrader
and Griffiths).
3. STAFF ANNOUNCEMENTS
a. Staff announced that there will be an event open to the public at the Alameda City Council
Meeting on December 6, 2016 from 5pm to 8pm. Alameda residents will have the
opportunity to speak with staff about specific issues relating to terminations and rent
increases.
b. The next Committee meeting will be Wednesday, January 11, 2017. More information is
available at www.alamedarentprogram.org.
c.
This meeting has a new room arrangement with a private area for parties interested in
discussing an agreement.
d. Staff explained the schedule for the evening, noting where to find the meeting agenda and
procedures for public comment.
4. PUBLIC COMMENT, NON-AGENDA, NO.1
a. No public comment.
5. CONSENT CALENDAR
a. Approval of the Minutes of the November 9, 2016 Regular Meeting.
Motion and second (Friedman and Schrader). Approved by Members Friedman, Griffiths, and
Schrader. Chair Sullivan-Sariñana abstained.
6. UNFINSHED BUSINESS
a. No unfinished business.
7. NEW BUSINESS
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7-B. Case 583 - 330 Westline Dr., Unit B425
Proposed rent increases:
12-month lease - $50.00 (2.0%) effective 12/16/16; No review
Month-to-month agreement - $359.00 (14.2%) effective 12/16/16; Under review
No review. The tenant did not attend the meeting. Hence, the Committee took no action
and both options on the rent increase notice are valid. The tenant retains the option to
choose the 12-month lease offer or the month-to-month rental agreement offer.
7-C. Case 584 - 344 Westline Dr., Unit C111
Proposed rent increases:
12-month lease - $50.00 (2.6%) effective 12/16/16; No review
Month-to-month agreement - $353.00 (17.4%) effective 12/16/16; Under review
No review. Prior to the RRAC meeting, the tenant and landlord agreed to a rent increase
between 0-5%.
7-D. Case 590 - 300 Westline Dr., Unit A204
Proposed rent increases:
12-month lease - $140.00 (5.0%) effective 12/26/16; No review
Month-to-month agreement - $924.00 (32.8%) effective 12/26/16; Under review
No review. Prior to the RRAC meeting, the tenant submitted paperwork to vacate the unit.
7-E. Case 591 - 909 Shorepoint Ct., Unit D207
Proposed rent increases:
12-month lease - $142.00 (4.9%) effective 12/29/16; No review
Month-to-month agreement - $925.00 (32.0%) effective 12/29/16; Under review
No review. Prior to the RRAC meeting, the tenant and landlord agreed to a rent increase
between 0-5%.
7-F. Case 593 - 941 Shorepoint Ct., Unit F102
Proposed rent increases:
12-month lease - $125.00 (5.0%) effective 12/16/16; No review
Month-to-month agreement - $831.00 (33.0%) effective 12/16/16; Under review
No review. The tenant did not attend the meeting. Hence, the Committee took no action
and both options on the rent increase notice are valid. The tenant retains the option to
choose the 12-month lease offer or the month-to-month rental agreement offer.
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7-G. Case 595 - 941 Shorepoint Ct., Unit F310
Proposed rent increases:
12-month lease - $123.00 (5.0%) effective 12/28/16; No review
Month-to-month agreement - $819.00 (33.1%) effective 12/28/16; Under review
No review. The tenant did not attend the meeting. Hence, the Committee took no action
and both options on the rent increase notice are valid. The tenant retains the option to
choose the 12-month lease offer or the month-to-month rental agreement offer.
7-A. Case 576 - 1226 Broadway, Unit A
Tenant/public speakers: Blanca Alberts, Ann Petitjean, Michael Bracamontes
Landlord/public speakers: Joseph Cervelli Sr., Joe Cervelli Jr.
Proposed rent increase: $2000.00 (200.0%), effective date January 1, 2017
This rent increase request was originally scheduled for the November 9, 2016 Rent Review
Advisory Committee meeting. The review was postponed one month to the December Rent
Review Advisory Committee meeting.
Mr. Bracamontes stated the reasonable maximum monthly rent increase the tenant, Ms.
Alberts, would be able to pay is $50.00 (5.0%). He explained that Ms. Alberts is 74 years
old and has lived in the unit for 36 years. He explained Ms. Alberts is on a fixed-income
and that the proposed rent increase would have a significant financial impact. He noted
there have been long standing habitability issues in the unit that have affected Ms. Alberts'
health. He explained there was an understanding that in exchange for Ms. Alberts not
asking for repairs, Mr. Cervelli would not increase rent. He noted that Ms. Alberts has paid
for many repairs herself. Mr. Bracamontes stated that the current rent increase is in
retaliation for the tenant's requests to make repairs to the property and her successful
defense against a previous termination of tenancy.
Mr. Cervelli Jr. stated that the landlord, Mr. Cervelli Sr., had offered to meet privately
before the Committee meeting. However, the tenant was only willing to meet at the
attorney's office in San Francisco, which as a burden for his elderly father. He stated there
was never an understanding that Mr. Cervelli Sr. would not increase rent if Ms. Alberts did
not ask for repairs. He stated that his father was unaware of habitability concerns in the
apartment and would have repaired them if he had known. He also explained that within
the last five years, when habitability issues were brought to his attention, repairs and
improvements were made such as a new refrigerator, new carpeting, and a remodeled
bathroom. Mr. Cervelli Jr. estimated the median rent for a comparable unit to be $3,600.00.
He stated that a there have been increases in overall costs, such property taxes, utilities,
and building insurance. He stated that his father is asking for a fair and equitable return on
investment. He emphasized that this increase is not retaliation. Rather, this increase is a
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consequence of Mr. Cervelli Sr. avoiding conflict and not increasing rent for a long period
of time, noting eighteen years have passed since the previous increase.
Parties also discussed maintenance issues and a 2015 notice of termination of tenancy that
was dismissed in April 2016.
Chair Sullivan-Sariñana stated that $2,000.00 is a very large increase for the tenant, but
that the return on investment to the landlord is likely non-existent. Member Griffiths asked
Mr. Cervelli what return on investment he needs to keep the apartment habitable and
provide a fair return. Mr. Cervelli responded that an increase of $1,000.00 is close to what
is needed.
Member Schrader asked Ms. Alberts what she can afford to pay. Ms. Alberts responded
that she receives fixed social security income and works a part time job. She said she could
afford an increase of 5%. Member Friedman emphasized wanting to maintain Alameda's
community. He also asked the tenant to consider if her income had increased over the 36
years she has resided in the unit.
Chair Sullivan-Sariñana noted that there is one tenant in a three-bedroom unit. He asked
Ms. Alberts if she had considered subletting the available rooms. She responded that she
had not considered this option, except for family who previously lived in the unit. She
noted that she feels her health issues limit her ability to handle the stress of subletting the
rooms.
Staff clarified that the case was nearly at its time limit. Staff reminded parties of their option to
discuss privately in another room and parties agreed to discuss privately. The Committee motioned
to table the item, approved by unanimous consent. Motion and second (Sullivan-Sariñana
Griffiths).
After private discussion, parties were unable to reach an agreement. Staff summarized the tenant
and landlord's conversation to provide information for the Committee's binding recommendation:
Tenant increased the amount she would be able to afford, ultimately stating that
$1,200 is the maximum monthly increase the tenant could pay. The tenant
emphasized this is the most that she could afford based on her fixed income. She
also restated that subletting would not be an option based on her current health
situation.
Landlord stated he was open to allowing rooms in the apartment to be sublet. The
landlord expressed that it would be possible to increase the rent from $1,000 to
$1,500 as opposed to his original request of $3,000.
Member Friedman noted that this case was an anomaly in that such a long period has passed
without a rent increase. He also addressed that social security payments have consistently
increased around 2-3% for the last few decades and stated that $1,000 eighteen (18) years
ago is equal to about $1,500 today. Based on these figures, he expressed that a $1,500 rent
seemed reasonable.
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Member Schrader noted that CPI since 1980 has increased 3.3% per year. He stated that
raising the rent to $1,500 calculates to around a 2.2% annual rent increase or 2/3 of the CPI
increase. Based on these numbers, Schrader also stated that $1,500 rent appeared
reasonable. He noted that it appeared that the landlord was willing to be flexible to resolve
this issue. He also stated that the people with the best understanding of what is reasonable
rent are the tenant and the landlord.
Chair Sullivan-Sariñana expressed concern for situations like this one where there is a long
history of no rent increase and then a significant increase at once. He also noted concern
that $500 may be an unaffordable monthly increase for someone on a fixed income and the
Committee's role is to reduce harm to tenants and keep people in their homes.
Member Griffiths brought up the subletting option, noting the difficulty that the tenant
stated this was not a realistic option based on her health circumstances. He expressed the
consideration and flexibility the landlord had with offering this option. Member Griffiths
supported the rent increase to $1,500 with the option remaining open for the tenant to sublet
rooms when her health improves.
Staff noted the Committee members have the option of phasing a rent increase. Member
Schrader suggested the Committee could use this option by raising the rent to what the
tenant said was affordable and phasing a second rent increase later, allowing the tenant
time to adjust to the increase.
Member Friedman stated that there is an option for either party to appeal the decision of
the Committee.
The Committee recommended a rent increase of $200.00 to a monthly rent of $1,200.00, effective
January 1, 2017 followed by a $300.00 increase to a monthly rent of $1,500.00, effective June 1,
2017. The Committee also strongly encouraged the landlord to allow the tenant the option to sublet
available rooms in the apartment. Motion and second (Griffiths and Friedman). Approved by
Members Friedman, Griffiths, and Schrader. Chair Sullivan-Sariñana voted no.
7-H. Case 581 - 1909 Cambridge Dr.
Proposed Rent Increase: $508.00 (22.0%), effective January 1, 2017
No review. Prior to the RRAC meeting, the tenant submitted paperwork to vacate the unit.
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7-I. Case 596 - 1334 Fernside Blvd.
Proposed Rent Increase: $880.00 (28.4%), effective February 1, 2017
No review. Prior to the RRAC meeting, the tenant submitted paperwork to vacate the unit
and the landlord submitted paperwork that the rent increase had been rescinded.
7-J. Case 598 - 1537 Schiller St., Unit C
Proposed Rent Increase: $120.00 (10.0%), effective January 1, 2017
No review. Prior to the RRAC meeting, the tenant and landlord agreed to a rent increase
between 5-10%.
7-K. Case 599 - 2224 Encinal Ave.
Tenant/public speaker: Rachael Bigelow, Emily Casey, Rose Wantugu
Landlord/public speaker: Elisabeth Middelberg
Proposed rent increase: $194.00 (9.2%), effective date delayed until RRAC review
Staff noted that a rent increase in December 2015 was not in compliance with the City's Urgency
Ordinance no. 3140 (later amended with Ordinance no. 3143), which imposed a temporary
moratorium on rent increases of 8% or more from November 5, 2016 to March 30, 2016. This
limited the December 2015 rent increase to $156.00. As such, the current base rent cannot exceed
$2,106.00. Documentation was submitted to the Program Administrator that the additional
collected rent has been credited to the tenant.
The tenants, Rachael Bigelow, Emily Casey, Rose Wantugu, stated that the maximum
reasonable rent increase would be $39.00 (1.9%). Tenants stated that they received a rent
increase of 10.0% (corrected to 8%) in December 2015 and the landlord's proposal to again
raise rent near 10% poses a financial burden to them. Tenants also emphasized that
comparing their rent to market rate missed the fact that their unit was not comparable in
amenities to many other units. They stated that aside from window and refrigerator
replacement, there have not been improvements to the unit warranting a rent increase. They
stated that the landlord's upkeep on the ground floor unit does not benefit their unit.
Tenants also noted that property taxes for Ms. Middelberg have decreased.
Elisabeth Middelberg, the landlord, stated she offered a rent increase of 7.5% earlier that
day. She stated that she considers the current rent to be below the market rate, especially
with parking and garbage included in the rent. She explained that the tenants' unit benefits
from improvements to the unit below, such plumbing maintenance, pest control and
upgraded parking availability. She also explained that overall costs have increased,
including property taxes, maintenance costs, and repairs needed on the ground floor unit.
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Additionally, Ms. Middelberg stated that she is a renter and is experiencing rent increases
that have a financial burden on her.
The tenants noted that communicating to Ms. Middelberg about maintenance issues had
been difficult. They stated that more transparency from Ms. Middelberg about operating
costs would help them better understand the reasoning behind rent increases.
Parties discussed various rent increase options between 2.0% and 7.5%. Tenants stated the
highest increase they could afford would be $105.00 (5.0%). Landlord stated the lowest
increase she could afford was $120.00 (5.7%). Committee members emphasized how close
the two parties were to an agreement.
Griffiths proposed the option to phase the increase with a portion effective this month and another
portion effective six months later. Parties discussed the amount and effective date of the option of
phased rent increases. Parties reached an agreement of a rent increase equal to $105.00 to a
monthly rent of $2,211.00, effective December 1, 2016 followed by an increase of $15.00 to a
monthly rent of $2,226.00, effective May 1, 2017. Motion and second (Schrader, Griffiths),
unanimously approved.
8. PUBLIC COMMENT, NON-AGENDA, NO. 2.
a. No public comment.
9. MATTERS INITIATED
a.
Member Friedman requested that the Committee hold a special meeting to discuss Rent
Stabilization Ordinance no. 3148. Staff confirmed that a special meeting would be
scheduled.
10. ADJOURNMENT
The meeting was unanimously adjourned at 9:17 p.m.
Respectfully submitted,
thing
RRAC Secretary
Jennifer Kauffman
Approved by the Rent Review Advisory Committee on January 11, 2017.
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