pages: RentReviewAdvisoryCommittee/2018-06-06.pdf, 3
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RentReviewAdvisoryCommittee | 2018-06-06 | 3 | Approved Minutes June 6, 2018 Member Murray asked Ms. Vazquez why her income had decreased. Ms. Vazquez replied that her former employer retired last year, and her new job did not pay as much, and was on contract, not permanent employment. Member Murray asked Ms. Vazquez if she saw a clear path to increasing her income. Ms. Vazquez replied that she believes her income will increase but was not sure when. Member Murray asked her what impact a 10% increase would have on her. Ms. Vazquez replied that she would probably have to move, but was not sure to where since rents are high everywhere. Member Murray asked her if she could afford a 5% rent increase and Ms. Vazquez said she could. Member Friedman asked the landlords how much their expenses relating to the property have increased over the past year. Ms. Gravelle provided some concrete expense increases and added that operational costs and costs of supplies had also increased. Member Friedman asked if there had been a 10% increase in expenses. Mr. Gravelle stated that some of the 10% they were now requesting is not directly related to this last year's increases, but also includes a desire to "catch up" because they had not raised the rent in four of the past six years. Member Murray commented that a larger one time increase can be harder for a tenant to afford than multiple smaller increases, as it may give the tenant less of an ability to adjust and plan their finances in a regular, sustainable way. She acknowledged that the purpose of Ordinance 3148 is to stabilize tenants' living situations, which smaller, more regular increases would do better than fewer larger increases. Chair Cambra asked if any party learned something new that they did not know before the hearing began. Ms. Gravelle said she didn't know that Ms. Vazquez had taken a pay cut with her new job. Chair Cambra asked if they were willing to modify their rent increase offer having learned this. Mr. Gravelle stated that they would accept a $124 rent increase (7.5%). Member Griffiths asked Ms. Vazquez how much she would be comfortable paying and she said she could pay 5% increase or $82.50 increase. Vice Chair Sullivan-SariƱana asked the landlords what impact not having the full increase would have on their life. Mr. Gravelle restated that they had been losing money on the property, and understands that that's common for a number of years after buying a rental property. Ms. Gravelle added that they had two out of three of their children currently in college, and that Mr. Gravelle would be retiring soon adding to their need for additional income from the property. Vice Chair Sullivan-SariƱana pointed out that Ms. Vazquez had indicated that she thought a $50 increase was reasonable on her response form, and asked her to think about how much she could really afford. Member Murray noted that both parties had genuine financial concerns. She proposed a stepped rent increase: an increase of $85 for the first six months, followed by an additional $80 for the second six months of the coming year. Page 3 of 7 | RentReviewAdvisoryCommittee/2018-06-06.pdf |