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18630 | Approved Minutes January 24, 2017 they have power to challenge increases of 5% or less because the Committee's decision is non-binding. He recommended that the Committee have binding authority for all non- exempt unit cases. Member Schrader agreed and clarified that state law prevents municipalities from making binding decisions for certain units. He agreed it would be positive for the Committee to have binding authority on all non-exempt units, rather than being seen as a procedural process for increases of 5% or less. Member Friedman agreed with the previous statements. He added that currently he believes a landlord can work around a Committee recommendation of less than 5%. He explained that if a landlord disagrees with a Committee recommendation of less than 5%, the landlord could rescind the current notice and serve a new notice equal to 5%, which would not receive a binding decision by the Committee. Staff stated that removing the rent increase percentage threshold for binding decisions may increase the Committee's caseload and additional staffing may be necessary. Member Schrader stated he would prefer to review those cases, even if it meant an increased caseload. Chair Sullivan-Sariñana agreed. The Committee recommended that the Committee have binding authority for any non- exempt unit initiated by a tenant. 4. In some situations, two rent increases are offered simultaneously. This requires review if at least one offer is above 5%. Should lease options be limited? Member Schrader stated that the RRAC should not limit lease options. Chair Sullivan- Sariñana noted that offering a large month-to-month rent increase option is a way to pressure tenants into accepting a 5% rent increase. Staff clarified that multiple lease options are generally only seen at one property and month to month options are directed towards corporate leases. Staff explained that tenants receiving more than one rent increase offer are contacted by the Program Administrator. However, staff has found that most of these tenants do not contact staff back and usually accept one of the rent increase offers or chose to vacate the unit. No recommendation from the Committee. Motion and second to take a five minute break (Sullivan-Sariñana and Schrader). Unanimously approved. 5. Should the Ordinance allow short-term rentals without the offer of a one year lease option? Page 4 of 7 |