pages: RentReviewAdvisoryCommittee/2016-12-05.pdf, 4
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RentReviewAdvisoryCommittee | 2016-12-05 | 4 | Approved Minutes December 5, 2016 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. Page 4 of 7 | RentReviewAdvisoryCommittee/2016-12-05.pdf |