pages: RentReviewAdvisoryCommittee/2019-01-23.pdf, 3
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RentReviewAdvisoryCommittee | 2019-01-23 | 3 | Approved Minutes January 23, 2019 Proposed rent increase: $164.00 (10.0%), to a total rent of $1,811.00, effective October 1, 2018 Mr. King stated that current ownership purchased the building a little over a year ago, and the previous owner left a lot of deferred maintenance to address. Over the course of the past year, they have spent over $3 million on seismic bracing, replacing rotting balconies, roof maintenance, re-painting, and amenities including a gym, children's play area, new seating, and gas barbecue grill. To cover some of that investment they are asking for rent increases in excess of five percent. The rent increases are also informed by the market rates, with the landlord renting comparable one-bedroom units for $2,200. Mr. Khan stated that the increase would be a burden. He is the sole income earner for a four-person household that includes his wife and two children, and he also provides support for his parents. He has lived in the unit since 2015 and has paid rent in a timely manner. He stated he generally makes about $1,400 every two weeks, but his work hours vary. He said in previous years the rent has increased 4.9 percent. Chair Murray asked Mr. King if he wanted to respond. Mr. King said he appreciated Mr. Khan's concerns but it can be difficult to keep rents affordable while also making repairs to the property, particularly addressing seismic safety. Member Chui asked Mr. Khan if there was an increase amount with which he would be comfortable. Mr. Khan responded five percent. Vice Chair Sullivan-Cheah, and Chair Murray asked Mr. Khan for clarification and details about his family and employment situations. Mr. Khan reported that his children are 4 and 6 years old, and they attend school in Alameda; his wife has been unable to find work and he anticipates she will continue to take care of the home and children; he currently works as a salesman; and he is paid hourly and typically receives an annual raise between $0.50 and $1 per hour. Vice Chair Sullivan-Cheah asked if Mr. Khan could express the rent increase he would be comfortable with as a dollar amount. Mr. Khan responded $82. Vice Chair Sullivan- Cheah asked what financial impact the full rent increase would have on Mr. Khan's household. Mr. Khan stated he would not be able to afford food and out-of-pocket medical expenses. Vice Chair Sullivan-Cheah asked what utilities are included in the rent. Mr. King responded that all utilities are included except for gas. Mr. Khan stated a typical gas bill is sometimes $15, but varies depending on the season. Committee members had no further questions. | RentReviewAdvisoryCommittee/2019-01-23.pdf |