pages: RentReviewAdvisoryCommittee/2018-08-06.pdf, 3
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RentReviewAdvisoryCommittee | 2018-08-06 | 3 | Approved Minutes August 6, 2018 Chair Cambra asked if Mr. Fried had a response to Ms. Harrison's comments. Mr. Fried said that if the landlord doesn't get this increase, he would have to sell the property. Mr. Armitage said that he had raised the rent $400 in October 2017 and tenants agreed, but subsequently learned there was an Ordinance. He said that upon contacting Mr. Fried's firm, he learned that the increase was improper and was advised to rescind and the increase and refund the excessive amounts charged under it, which he did. Vice Chair Sullivan-Cheah asked Mr. Armitage how he came to the increase amounts he did. Mr. Armitage replied that he did research to see what the market rate was for comparable units and decided he wanted to raise it to market value in anticipation that Costa Hawkins may be overturned. He said he was concerned that if that law was overturned, he may be stuck with below market rate rent forever. Mr. Armitage said that he had just retired and did not have as much money coming in as he used to when he was working. Chair Cambra asked if the possible Costa Hawkins repeal was the main reason he was asking for the increase, and Mr. Fried said it was the impending reason, but the long- term reason was to ensure the landlords could obtain adequate rental income in their retirement. Member Friedman said that even though they could not render a binding decision, the Committee still had a responsibility to stabilize the rental market and see if they might help families like Ms. Harrison's stay in the community. He questioned the level of urgency to raise the rent that Mr. Fried provided, and wondered if there was room to come to an agreement where everyone's needs were met. Mr. Fried said he would counsel his client to raise the rent now before any impending legislation takes effect. Chair Cambra asked if the repeal of Costa Hawkins would change local rent control laws beyond making exempt units nonexempt. City Attorney's Office staff said that it would not be self-executing; most cities would have to make amendments, as it is not as though rent control would immediately kick in after repeal. Member Murray further explained the intention of the Ordinance and the Committee. Ms. Harrison said she found rents on comparable homes starting in the low $3,000s and said they were looking for the least expensive way to attain housing accommodations. Member Murray further clarified that the Committee would be looking to see if a compromise or agreement could be made. Mr. Fried said that he would never advise his client to lower the rent, and suggested it was in the tenants' best interests to move somewhere with lower rent. He said only Santa Page 3 of 7 | RentReviewAdvisoryCommittee/2018-08-06.pdf |