pages: CityCouncil/2016-03-01.pdf, 4
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CityCouncil | 2016-03-01 | 4 | The Community Development Director responded in the affirmative; stated the prime rate plus 1% is a formula based on the standard business interest rate for renovation loans. In response to Councilmember Daysog's inquiry, the Community Development Director stated the owner of 470 Central Avenue stated his interest rate for his balloon loan is 10%; the proposed formula prevents rewarding business decisions that do not make sense to the tenants; a bank that offers commercial construction loans as a routine part of doing business would have a good interest rate; she does not want to encourage high interest rates that would drive up rent. Councilmember Daysog inquired whether staff sensed that a landlord seeking renovations in the millions of dollars will go after a higher interest rate. The Community Development Director responded in the negative; stated that it could happen, which was the case for 470 Central Avenue; the owner had a proposal to evict all tenants to do substantial rehabilitation which included a doubling of rents due to the financing he had arranged; the financing structure the owner obtained to undertake substantial rehabilitation was not appropriate; staff was looking for standard business procedures. Councilmember Daysog stated the language should be re-written to capture various possibilities. Councilmember Oddie stated there are one-off circumstances; there should be some mediation if the tenant would like to return; issues should not be resolved at a public hearing or by the RRAC; having a trial or pilot program is a good opportunity, especially if a tenant wants to return; there are a lot of combinations to deal with in the interim period. The Community Development Director inquired whether Councilmember Oddie is proposing a mediator who could handle the CIP and mediate temporary relocation, to which Councilmember Oddie responded in the affirmative; stated having a mediator would give Council the opportunity to mediate evictions on a trial basis. Mayor Spencer stated the use of the word "landlord" instead of "housing provider" should be consistent. In response to Mayor Spencer's inquiry, the Community Development Director stated staff reviewed City of Berkeley and City of Los Angeles as a model for the CIP program. Mayor Spencer inquired whether other cities have a staff person, to which the Community Development Director responded in the affirmative; stated most cities with rent control have a staff hearing officer; Alameda proposes a contract hearing officer. Regular Meeting Alameda City Council 4 February 16, 2016 | CityCouncil/2016-03-01.pdf |