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11 rows where body = "RentReviewAdvisoryCommittee" and "date" is on date 2019-01-23
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RentReviewAdvisoryCommittee/2019-01-23.pdf,1 | RentReviewAdvisoryCommittee | 2019-01-23 | 1 | Approved Minutes January 23, 2019 Minutes of the Regular Meeting of the Rent Review Advisory Committee Monday, January 23, 2019 1. CALL TO ORDER AND ROLL CALL The meeting was called to order at 6:32 p.m. Present: Vice Chair Murray; Members Chiu, Johnson, and Sullivan- Cheah Absent: None Program staff: Grant Eshoo, Samantha Columbus City Attorney staff: John Le Staff called roll of case participants. All parties were present. 2. AGENDA CHANGES None. 3. STAFF ANNOUNCEMENTS Program staff announced that January 25 is the last day to turn in applications for the open RRAC seat. Program staff requested Committee members provide their availability for future special meetings to hear additional cases. Members indicated their availability for special meetings on February 7, February 25, March 4, and March 11. 4. PUBLIC COMMENT, NON-AGENDA ITEMS, NO.1 None. 5. CONSENT CALENDAR 5-A. Approval of the minutes of the November 7, 2018 regular meeting The Committee agreed to table consideration of this item to a future meeting to allow revisions. 5-B. Approval of the minutes of the November 19, 2018 special meeting Motion and second to approve the minutes (Vice Chair Murray and Member Sullivan- Cheah). Motion passed 4-0. | RentReviewAdvisoryCommittee/2019-01-23.pdf |
RentReviewAdvisoryCommittee/2019-01-23.pdf,2 | RentReviewAdvisoryCommittee | 2019-01-23 | 2 | Approved Minutes January 23, 2019 5-C. Approval of the minutes of the November 27, 2018 special meeting Motion and second to approve the minutes (Vice Chair Murray and Member Sullivan- Cheah). Motion passed 4-0. 5-D. Approval of the minutes of the December 5, 2018 special meeting Motion and second to approve the minutes (Vice Chair Murray and Member Sullivan- Cheah). Motion passed 4-0. 5-E. Approval of the minutes of the December 12, 2018 special meeting Motion and second to approve the minutes (Vice Chair Murray and Member Sullivan- Cheah). Motion passed 4-0. 6. UNFINISHED BUSINESS None. 7. NEW BUSINESS 7-A. Discussion of vote for Chair and Vice Chair Member Chiu expressed support for Vice Chair Murray, who has been serving as Interim Chair, to continue as Chair, and for Member Sullivan-Cheah to serve as Vice Chair. Vice Chair Murray stated that, should the Committee gain a fifth member, the Committee could hold a new vote for Chair and Vice Chair at that point. 7-B. Vote on Chair and Vice Chair Motion and second to elect Vice Chair Murray as Chair of the Committee (Members Chiu and Johnson). Motion passed 4-0. Motion and second to elect Member Sullivan-Cheah as Vice Chair of the Committee (Members Chiu and Johnson). Motion passed 4-0. Positions are effective immediately. 7-C. Case 1110 - 1861 Poggi St., Apt. B101 Tenant: Nasir Khan Landlord: Andy King | RentReviewAdvisoryCommittee/2019-01-23.pdf |
RentReviewAdvisoryCommittee/2019-01-23.pdf,3 | 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… | RentReviewAdvisoryCommittee/2019-01-23.pdf |
RentReviewAdvisoryCommittee/2019-01-23.pdf,4 | RentReviewAdvisoryCommittee | 2019-01-23 | 4 | about debris left behind from the construction, and although it has since been cleaned up, the inspector informed her that the landlords have lost their construction permit for a new apartment, perhaps having to do with the City's electrical code. This occurred in September and the tenants received the rent increase notices in October. Upon review of her statement, Ms. Conway corrected the amount of the property tax discrepancy she alleged to $20,071, which was $8,000 less than what Ms. Rousseau submitted. | RentReviewAdvisoryCommittee/2019-01-23.pdf |
RentReviewAdvisoryCommittee/2019-01-23.pdf,5 | RentReviewAdvisoryCommittee | 2019-01-23 | 5 | Approved Minutes January 23, 2019 Chair Murray asked Ms. Rousseau if she wanted to respond. She stated that she believes the discrepancy in the property tax figures may be due to the purchase occurring in the middle of the calendar year. The utility estimate includes $600 for garbage service every two months and is also the same that the previous owner used during the sale. She said she was unsure what Ms. Conway was referring to in reference to the lost permit. Member Johnson asked if Ms. Rousseau had received a comprehensive assessment or official report of the maintenance issues prior to purchasing. Ms. Rousseau confirmed that they did. Member Chiu asked clarifying questions about Ms. Conway's tenancy and the property. She stated that she has lived there since 2010, her rent increased $19 in 2011, $45 in 2017, and $50 in 2018, and she was comfortable with those increases. She added that the property does not include laundry or common areas other than stairwells, hallways, and lighted outdoor spaces. Vice Chair Sullivan-Cheah asked whether Ms. Conway was the only working adult in the unit. She responded that she was, and her use of "we" in submitted materials refers to tenants of other units. Vice Chair Sullivan-Cheah asked what sources had informed her statement that 1/3 of take-home pay is a reasonable amount. She responded that in her experience it is a common rule and often a prerequisite when property management companies are evaluating applicants. Chair Murray asked clarifying questions about Ms. Rousseau's family and finances. She responded that she bought the property with her brother, who is disabled and not able to work. She said he receives SSI and she provides him with additional support. She stated her brother is dependent on income from the building to supplement his income, which was their intention when they purchased the property, and the purchase was also a retirement investment. Chair Murray asked what the impact on Ms. Rousseau and her brother would be if they did not get the rent increase t… | RentReviewAdvisoryCommittee/2019-01-23.pdf |
RentReviewAdvisoryCommittee/2019-01-23.pdf,6 | RentReviewAdvisoryCommittee | 2019-01-23 | 6 | Approved Minutes January 23, 2019 hard to open and close. She stated she loves the apartment and has a close relationship with the neighbors. Chair Murray stated that it seemed she was reporting on maintenance issues that need to be addressed. Ms. Conway raised the issue of the revoked construction permit for a rear unit, which is not occupied. Chair Murray noted that Ms. Rousseau had not disclosed any issues with permits or intent to construct. Vice Chair Sullivan-Cheah asked Ms. Conway if the previous landlord had a formal process for submitting maintenance issues or repair requests. She replied that she would call the previous owner to report maintenance problems. She said she had not submitted a request about the loose tiles or windows. Chair Murray asked if either landlord or tenant had changed their positions. Ms. Conway asked if Ms. Rousseau would consider a 3 percent increase, and Ms. Rousseau declined. Chair Murray asked Ms. Rousseau if there was an amount smaller than $391 that would meet her goals and needs. Ms. Rousseau suggested $1,300 per month, a $245 increase. Ms. Conway countered with a rent of $1,125 per month. Ms. Rousseau declined, noting that she calculates the property tax increase alone is $246 per unit. Ms. Conway noted the housing program fee cannot be included. Chair Murray asked Ms. Conway about her income. She responded that she is salaried and usually gets a 2 percent raise per year. Member Chiu asked Ms. Rousseau if she knew how long the previous landlords had owned the building. She said she did not, but it was a long time, and the property had passed from parents to children, which explained the low tax base. Chair Murray asked Ms. Rousseau what effect not getting the full requested increase would have on her ability to address deferred maintenance. Ms. Rousseau responded that it would be hard to keep up with the needed maintenance. Chair Murray asked if Ms. Rousseau had set aside any funds for maintenance and upgrades based on the assessments and inspections conducted during the p… | RentReviewAdvisoryCommittee/2019-01-23.pdf |
RentReviewAdvisoryCommittee/2019-01-23.pdf,7 | RentReviewAdvisoryCommittee | 2019-01-23 | 7 | Approved Minutes January 23, 2019 7-E. Case 1190 - 2412 Eagle Ave., Apt. E Tenant: Marine Hovanessian Landlord: Kathy Rousseau Proposed rent increase: $391.00 (50.1%), to a total rent of $1,171.00, effective January 1, 2019 Ms. Rousseau stated that the current rent of $780 a month is 230 percent below the market rate, based on comparable one-bedroom units in the area. She said she was requesting the same $391 increase for all tenants of the property, and even with the increase, the rent would still be 50 percent below the market rate. Ms. Rousseau pointed out that the amount she was requesting was comparable to the amount the rent would be had the previous owner increased the rent 4.25 percent each year over the length of the tenancy. Ms. Hovanessian referred the Committee to the letter she submitted. She added that she has lived in the unit for 15 years and had built her life based on her existing rent. Specifically, she sponsored her mother's immigration to the United States in 2009 and her father's in 2013, and he explained that she is financially responsible for them, as they are unable to work because of their age and language barriers. She said she understands Ms. Rousseau's position, but the increase will have a large impact on her and her parents. The building does not have laundry facilities. There have been no upgrades to her apartment in the 15 years she has lived there. She said there are cracks between the tiles in her kitchen floor that water gets into. The windows cannot fully close which lets in cold air. She said living in Alameda provides a safe community for her parents. Her apartment is a little smaller than Unit D from the previous case. Member Chiu asked for clarification on previous rent increases and her finances. Ms. Hovanessian stated that there had been few rent increases during her tenancy, including none during the first six years. She said her monthly income is about $4,500 monthly, and expenses are about $4,430. Vice Chair Sullivan-Cheah asked for clarification on the condition of M… | RentReviewAdvisoryCommittee/2019-01-23.pdf |
RentReviewAdvisoryCommittee/2019-01-23.pdf,8 | RentReviewAdvisoryCommittee | 2019-01-23 | 8 | Approved Minutes January 23, 2019 apartment elsewhere in Alameda. She said her daughter work part-time and attends college, and she contributes to her daughter's food and utilities, as well as pays the full $1,600 monthly rent on that apartment, in addition to her own. The parties were not able to reach an agreement and the Committee began deliberations. Vice Chair Sullivan-Cheah stated that neither party's position S unreasonable. He said in these situations he considers who has the financial ability to absorb more financial hardship. Chair Murray stated it may not be possible for the tenant to continue this arrangement with two households in the long-term, but the Committee can consider a compromise that avoids forcing an immediate relocation. Member Johnson stated she believes the landlord is justified in seeking an increase of more than 5 percent, but that those buying a rental property must consider the likelihood of successfully seeking a 50 percent increase when deciding on a purchase price. Vice Chair Sullivan-Cheah stated he believes the tenant's position that 10 percent is a maximum increase she could afford based on her budget. Member Johnson stated that the owner did make an investment, and it is reasonable to expect a return. Chair Murray noted that both parties are trying to provide financially for family members who are unable to work. She noted that the committee only has the ability to make a decision for one year. Member Johnson stated she believes a 50 percent increase is too large, but a 10 percent increase may not be enough for the landlord given the higher tax base and few rent increases over the years. Vice Chair Sullivan-Cheah noted that their decision on this case, as well as the building's history, would be part of the public record and could therefore be considered if the landlord seeks a new increase on the unit after a year. Member Chiu suggested a $100 increase, recognizing it would be a challenge for the tenant but perhaps low enough to give her time to figure out a long-term soluti… | RentReviewAdvisoryCommittee/2019-01-23.pdf |
RentReviewAdvisoryCommittee/2019-01-23.pdf,9 | RentReviewAdvisoryCommittee | 2019-01-23 | 9 | Approved Minutes January 23,2019 Vice Chair Sullivan-Cheah motioned for an increase of $100 effective February 1, 2019. He amended his motion to an increase of $0 for January 2019, followed by an increase of $100 from February 2019 through December 2019. Motion seconded by Member Chiu. The motion passed as amended 4-0. 7-F. Case 1193 - 2121 Santa Clara Ave., Apt. 5 Tenant: Damu Sudi Alii Landlord: Edward Wong Proposed rent increase: $50.00 (4.8%), to a total rent of $1,100.00, effective January 1, 2019 Mr. Alii said he is a senior on fixed income and has been renting this unit from Mr. Wong since 2006. For the first three or four years, he said, there were no rent increases, but in the last five or six years the size of the requests had steadily increased. He said he has been supplementing his income by working part time as a teacher and musician, but his deteriorating health is making work difficult. He feels the amount is unreasonable given the living space, which is a converted garage. He has to pay additional money for storage space elsewhere on the site. He is now at a point where he cannot keep up with the increases. He said the ventilation in the unit is not good, and poor heat retention leads to higher utility bills. He stated Mr. Wong has been a good landlord but has not always addressed his requests, such as fixing the gap under his front door. Mr. Wong said the unit is 800 to 900 square feet and used to be a firehouse. He said he values Mr. Alii as a tenant. He said his other tenants are all Section 8, and the increases he is asking from them are double what he is asking from Mr. Alii. He said the building is old and requires a lot of maintenance, and n the last four to five years, he has had to replace the sewer and roof. He said he believes he is asking for a reasonable rate of return, adding that he and his wife are in their 80's and depend on income from the property. Mr. Alii said he intends to stop using the storage space to decrease his costs. Mr. Wong said he would reduce Mr. Alii's overall pay… | RentReviewAdvisoryCommittee/2019-01-23.pdf |
RentReviewAdvisoryCommittee/2019-01-23.pdf,10 | RentReviewAdvisoryCommittee | 2019-01-23 | 10 | Motion and second for an increase of $0 for January 2019, followed by an increase of $35 effective February 2019 through December 2019 (Vice Chair Sullivan-Cheah and Member Chiu). Motion passed 3-1. | RentReviewAdvisoryCommittee/2019-01-23.pdf |
RentReviewAdvisoryCommittee/2019-01-23.pdf,11 | RentReviewAdvisoryCommittee | 2019-01-23 | 11 | Approved Minutes January 23, 2019 8. PUBLIC COMMENT, NON-AGENDA ITEMS, NO.2 None. 9. MATTERS INTIATED Vice Chair Sullivan-Cheah asked about the timeline for approving another Committee member. Program staff responded that following the submission deadline on January 25, it will take a few weeks to process applications and for the Mayor's office to review them and decide which applicants to interview. 10. ADJOURNMENT The meeting adjourned at 9:26 p.m. Respectfully Submitted, RRAC Secretary Grant Eshoo Approved by the Rent Review Advisory Committee on March 4, 2019 | RentReviewAdvisoryCommittee/2019-01-23.pdf |
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