pages: RentReviewAdvisoryCommittee/2019-02-25.pdf, 2
This data as json
body | date | page | text | path |
---|---|---|---|---|
RentReviewAdvisoryCommittee | 2019-02-25 | 2 | Approved Minutes February 25, 2019 Proposed rent increase: $389.00 (24.7%), to a total rent of $1,964.00, effective March 1, 2019 Program staff explained that, while processing this case, they found that previous rent increases for this unit were invalid, and directed the current landlord to lower the tenant's rent to $1,575, the last valid amount, and refund the overpayment. The landlord's notice shows a $178 increase over the invalid amount the tenant had been paying, while staff's summary shows a $389 increase over the valid base rent. The total rent is the same in both cases. Mr. King clarified that the invalid rent increases were issued by the previous owner, but current ownership refunded the tenant as directed. He said that the current ownership has spent $4 million in the last year and a half on renovations including seismic upgrades, roofing, painting, and improvements to the grounds. He submitted a 2018 profit-loss statement for the entire four-building complex, showing the property was not profitable last year. The amount they are seeking from Mr. Tervee is still below what they estimate they need to charge per unit to break even. Mr. Tervee stated that he derives no benefit from the improvements to the outside of the property, and there have been no improvements inside his unit. He said he has complained to both the previous owner and current owner about issues with his bathtub, refrigerator, carpet, and parking space, and neither addressed his concerns. He said his income is the same as when he moved in six years ago. Member Chiu asked for clarification on the invalid rent increases and what Mr. Tervee had paid in the last year. Mr. Tervee indicated that he continued to pay the invalid amount on his most recent payment. Mr. King said that Mr. Tervee would be refunded any overpayment made in February 2019. Member Chiu asked Mr. Tervee what he would consider a fair increase. Mr. Tervee responded he is happy with $1,575. Vice Chair Sullivan-Cheah asked Mr. Tervee if, since his rent has been decreased and the current owner paid for mistakes of previous ownership, it was reasonable for ownership to seek a higher rent. Mr. Tervee said an increase would only be reasonable if improvements were made to his unit. Mr. King said that he would notify property management about the issues that Mr. Tervee raised in the hearing. He said the parking lot is scheduled to be resurfaced and repainted, but it could not be done until after the seismic work was completed. Member Johnson asked for clarification about the ownership's income statement. She noted that the balance would be positive if it expenses did not include mortgage interest. | RentReviewAdvisoryCommittee/2019-02-25.pdf |