pages: RentReviewAdvisoryCommittee/2017-01-11.pdf, 3
This data as json
body | date | page | text | path |
---|---|---|---|---|
RentReviewAdvisoryCommittee | 2017-01-11 | 3 | Approved Minutes January 11, 2017 He explained that the procedures for rent increases were difficult to follow. He stated that the Bay Area is an expensive place to live and that he should not be responsible for the tenant's income. Member Friedman noted that the Committee is concerned about affordability. The landlord stated he did not want to raise the rent by less than 10.0%. Staff clarified that there is currently no hard cap on rent increases in the City of Alameda. The Committee unanimously passed a motion to extend time on the case by 10 minutes. Motion and Second (Griffiths and Landess). Public Comment: Erick Strimling: Mr. Stimling noted that a rent of $1,150 in 2014 gave the landlord an adequate rate of return. He questioned the landlord's consideration that an additional $3,000.00 of rent per year was a reasonable rate of return. The parties were unable to reach an agreement. The Committee discussed a binding recommendation for the rent increase. Member Griffiths recommended an increase of $62.50 immediately followed by an increase of $62.50 in six months. He explained that he generally prefers stepped increases since they give the tenant time to adjust to an increase and place only a temporary burden on the landlord. He also noted that the Committee should make a recommendation that has the best chance of being accepted by both parties. Member Friedman noted that both sides have valid perspectives. He emphasized the tenant's financial constraints and the landlord's cost constraints after years of not raising rent. He favored a 5.0% increase now, followed by a 5.0% increase in six months. He noted that this has the best chance of being accepted. Vice-Chair Landess emphasized that she thought the tenant raised important concerns. She noted that the landlord did not take the opportunity to show more empathy for the tenant's situation. In addition, she noted that the landlord lacked transparency in his documented costs. She stated that a 5.0% increase is fair. Member Schrader stated that a 10.0% increase would be reasonable since it averages out to an increase of less than 3.0% per year since the last rent increase. However, he stated he would support a 5.0% increase now, followed by a 5.0% increase in six months. Chair Sullivan-SariƱana noted that both parties have reasonable positions. He emphasized that the intent of the Ordinance is to keep Alamedans in their homes. He explained that stepped increases can cause confusion. Thus, he favored an 8.5% increase. The Committee unanimously recommended a rent increase of $62.50 to a monthly rent of $1,312.50, effective March 1, 2017 followed by a $62.50 increase to a monthly rent of $1,375.00, effective September 1, 2017. Motion and second (Griffiths and Friedman). Page 3 of 4 | RentReviewAdvisoryCommittee/2017-01-11.pdf |