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2022/10/06 Mobile Home Park Rent Appeals Board Agenda Packet City of Rohnert Park Mobile Home Parks Rent Appeals Board A G E N D A Thursday, October 6, 2022 -- 6:00 P.M. 130 Avram Avenue, Rohnert Park Public Participation: By Order of the Health Officer of the County of Sonoma C19-25 all individuals are required to wear face coverings, with limited exemptions. To maximize public safety while still maintaining transparency and public access, members of the public are encouraged to observe the meeting on Cable Channel 26 or by visiting meeting central on our website https://www.rpcity.org/city_hall/city_council/meeting_central Public Comment: Please fill out a speaker card prior to speaking. Members of the public may also provide advanced comments by email at rab@rpcity.org. Comments are requested by 3:00 p.m. on the day of the meeting to be considered by the Commission. Emailed comments must identify the Agenda Item Number, unless the item is not on the agenda, in the subject line of the email. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL (Finnigan___ Kirby___ Bolanos ___ Taylor___ Davis___) 4. ACKNOWLEDGEMENT OF POSTING OF AGENDA. Agenda posted in a minimum of three public places: Community Center, Public Safety Building & City Hall. 5. PUBLIC COMMENT (Items not on Agenda). Persons who wish to speak to the Board regarding an item that is not on the agenda may do so at this time. 6. CONSENT CALENDAR – APPROVAL OF MINUTES 6.1 Approval of the Draft Minutes of the Mobile Home Parks Rent Appeals Board meeting of May 5, 2022. 7. AGENDA ITEMS 7.1 Determine the Annual General Adjustment to the Maximum Allowable Space Rent for 2023 7.2 Consider Adoption of a Resolution to Establish Registration Fees for 2023 8. ITEMS FROM THE BOARD 9. ITEMS FROM THE STAFF 10. SECOND PUBLIC COMMENT PERIOD (Items not on Agenda) 11. NEXT REGULARLY SCHEDULED MEETING 12. ADJOURNMENT Draft Minutes of the City of Rohnert Park Mobile Home Parks Rent Appeals Board Thursday, May 5, 2022 -- 6:00 P.M. 1. CALL TO ORDER Chair Finnigan called the Mobile Home Parks Rent Appeals Board meeting to order at 6:05 p.m. The meeting was conducted in person at City Hall and was open to the public, and the Agenda included language on how to observe the meeting safely with COVID-19 and submit public comment. 2. PLEDGE OF ALLEGIANCE Led by Chair Finnigan. 3. ROLL CALL Present: Sarah Finnigan, Chair Janeen Kirby, Vice Chair Carla A. Taylor, Commissioner Brooke Lewis Davis, Commissioner Absent: Gemma Bolanos, Commissioner Staff Present: Michael Son, IT Analyst Clotile Blanks, Office Assistant 4. ELECTION OF OFFICERS FOR THE YEAR ACTION: Moved/seconded (Finnigan/Taylor) to nominate Vice Chair Kirby to the Chair. Motion carried by the following unanimous (4-0-1) roll call vote: AYES: Finnigan, Kirby, Taylor and Davis; NOES: None; ABSTAIN: None; ABSENT: Bolanos. ACTION: Moved/seconded (Kirby/Lewis) for Commissioner Taylor to be the Vice Chair. Motion carried by the following unanimous (4-0-1) roll call vote: AYES: Finnigan, Kirby, Taylor and Davis; NOES: None; ABSTAIN: None; ABSENT: Bolanos. 5. ACKNOWLEDGEMENT OF POSTING OF AGENDA Chair Kirby asked staff to confirm that the agenda was posted in a minimum of three public places: Community Center, Public Safety Building & City Hall. Housing Administrator Garcia confirmed. 6. PUBLIC COMMENT (Items not on Agenda) None. 7. CONSENT CALENDAR – APPROVAL OF MINUTES 7.1 Approval of the Draft Minutes of the Mobile Home Parks Rent Appeals Board meeting of May 5, 2022. ACTION: Moved/seconded (Finnigan/Taylor) to adopt the minutes of the Mobile Home Parks Rent Appeals Board meeting of May 5, 2022. Motion carried by the following unanimous (4-0-1) roll call vote: AYES: Finnigan, Kirby, Taylor and Davis; NOES: None; ABSTAIN: None; ABSENT: Bolanos. 8. AGENDA ITEMS 8.1 Consider Adoption of Fiscal Year 2022-2023 Budget. ACTION: Moved/seconded (Finnigan/Lewis) to adopt the Fiscal Year 2022-23 Budget. Motion carried by the following unanimous (4-0-1) roll call vote: AYES: Finnigan, Kirby, Taylor and Davis; NOES: None; ABSTAIN: None; ABSENT: Bolanos. 9. ITEMS FROM THE BOARD 10. ITEMS FROM THE STAFF 11. SECOND PUBLIC COMMENT PERIOD (Items not on Agenda) 12. NEXT REGULARLY SCHEDULED MEETING: Thursday, June 6, 2022 13. ADJOURNMENT Chair Kirby adjourned the regular meeting at 6:45 p.m. 1 DATE: October 6, 2022 TO: Rent Appeals Board FROM: Jenna Garcia, Housing Administrator SUBJECT: Item 7.1: Determine the Annual General Adjustment to the Maximum Allowable Space Rent for 2023 RECOMMENDED ACTION: Consider and announce an Annual General Adjustment (“AGA”) in mobile home space rents. DISCUSSION: The Mobile Home Ordinance and Rules & Regulations obligate the Rent Appeals Board to consider and announce an Annual General Adjustment (“AGA”) in mobile home space rents prior to November 1st of each year. The AGA is based on the change in the National Consumer Price Index (“CPI”), Urban Wage Earners and Clerical Workers, U.S. City average. The Bureau of Labor Statistics publishes the CPI statistics every month. Table 1 below shows the CPI index data from August 2022 as well as the historical CPI data from the previous nine years. Table 1: History of Annual General Adjustments (AGAs) Date CPI Index Net Index Change Percent Change Rounded to the Nearest 1/10 of 1%2 Effective Date On or After Actual Annual General Adjustment August 2013 230.359 3.303 1.454% 1.5% 2/1/2014 1.0% August 2014 234.030 3.671 1.594% 1.6% 2/1/2015 1.1% August 2015 233.366 -0.664 -0.284% -0.3% 2/1/2016 0.0% August 2016 234.904 1.423 0.609% 0.6% 2/1/2017 0.1% August 2017 239.448 4.544 1.898% 2.0% 2/1/2018 1.5% August 2018 246.336 6.888 2.796% 2.8% 2/1/2019 2.3% August 2019 250.112 3.776 1.510% 1.5% 2/1/2020 1.0% August 2020 253.597 3.485 1.393% 1.40% 2/1/2021 0.9% August 2021 268.387 14.79 5.832% 5.8% 2/1/2022 4.0% August 2022 291.629 23.242 8.660% 8.7% 2/1/2023 4.0% As you can see from Table 1, the net change in the CPI from August 2021 to August 2022 is 23.242 and the percentage change is 8.7% (rounded). The Mobile Home Ordinance provides CITY OF ROHNERT PARK Mobile Home Rent Appeals Board 2 that the AGA should be one-half of one percent (.5%) less than the percentage change in the CPI; however, per Section 9.70.050 of the Mobile Home Ordinance, the Annual General Adjustment shall not exceed four percent (4%). The index has increased 8.7% over the last 12 months and one-half of one percent (.5%) would put the AGA at 8.4%, which is above the maximum allowable increase of four percent (4%.) For this reason, the AGA will be set at 4%. As evidenced by the table above, as well as the increased cost of other consumer goods including gas and groceries, global inflation has been extremely high over the past two years. This has resulted in the AGA hitting its legal cap of 4% two years in a row – a much higher rent increase than the average 1% annual increase in the eight years prior. Staff recognizes that a rent increase of 4% may cause hardship for some households. However, without the City’s rent control provisions for people living in mobile home parks, the annual rent increases this and last year would likely have been much higher. The City’s voter-approved Mobile Home Ordinance provides protection for households living in mobile home parks that others in our community do not have. If anyone would like to review the Bureau of Labor Statistics CPI statistics themselves, they can access it here: https://www.bls.gov/cpi/ by clicking on the “CPI-W, August 2022” hyperlink. STAFF RECOMMENDATION: Staff recommends the Board adopt Resolution 2022-02 to determine the annual general adjustment of the maximum allowable space rent in effective on or after February 1, 2023 based on the Annual General Adjustment. Planning Manager Approval Date: 09/30/2022 Attachments (list in packet assembly order): 1. Resolution No. 2022-02 RESOLUTION NO. 2022-02 A RESOLUTION OF THE ROHNERT PARK RENT APPEALS BOARD DETERMINING THE ANNUAL GENERAL ADJUSTMENT OF THE MAXIMUM ALLOWABLE SPACE RENT EFFECTIVE ON OR AFTER FEBRUARY 1, 2023 WHEREAS, Section 9.70.050 of the Rohnert Park Municipal Code and Section 4.01 of the Rules and Regulations provides that the Rohnert Park Rent Appeals Board shall determine and announce the Annual General Adjustment of the Maximum Allowable Rent for a mobile home space on or before November 1st of each year; and WHEREAS, the Section 9.70.050 of the Rohnert Park Municipal Code provides that the Annual General Adjustment shall be one half of one percent (0.5%) less than one hundred percent (100%) of the percent change in the Consumer Price Index, Urban Wage Earners and Clerical Workers in the United States (CPI), rounded to the nearest one-tenth of one percent, not to exceed four percent (4%); and WHEREAS, the Bureau of Labor Statistics publishes the CPI and has reported the CPI for the month of August 2022. The CPI was 291.629 in August 2022, compared to a CPI of 268.387 in August 2021, an increase of 8.7 percent (rounded); and WHEREAS, pursuant to Section 9.70.050 of the Rohnert Park Municipal Code, the Annual General Adjustment shall be 4.0 percent; and WHEREAS, the anniversary date, upon which all properly noticed individual and annual general rent adjustments may become effective, for Rancho Feliz Mobile Home Park and for Rancho Grande Mobile Home Park is February 1; for Las Casitas Mobile Home Park is March 1; for Rancho Verde Mobile Home Park and for Valley Village Mobile Home Park is April 1. NOW, THEREFORE, BE IT RESOLVED by the Rohnert Park Rent Appeals Board that mobile home park owners in Rohnert Park are authorized to increase the space rental amount on their park’s anniversary date in 2023. BE IT FURTHER RESOLVED, by the Rohnert Park Rent Appeals Board that the Annual General Adjustment of the maximum allowable space rent effective on or after February 1, 2023, is 4.0 percent (4.0%). DULY AND REGULARLY ADOPTED by the Rohnert Park Rent Appeals Board this 6th day of October, 2022. ROHNERT PARK MOBILE HOME PARKS RENT APPEALS BOARD ______________________________________ ATTEST: Chair _______________________________ Secretary AYES: ____ NOES: ____ ABSENT: ____ ABSTAIN: ____ 1 DATE: October 6, 2022 TO: Rent Appeals Board (RAB) FROM: Jenna Garcia, Housing Administrator SUBJECT: Item 7.2: Consider Adoption of a Resolution to Establish Registration Fees for 2023 RECOMMENDED ACTION: Adopt Resolution No. 2022-03, establishing registration fees for mobile home spaces for 2023. BACKGROUND: The Rohnert Park Mobile Home Ordinance (“Ordinance”) was adopted pursuant to a vote of the people at a special election held on December 8, 1987. The Ordinance was established to prevent unreasonable rent increases while still assuring mobile home park owners a reasonable rate of return on their investment. The Ordinance established a rent appeals board (“Board”) consisting of five (5) appointed commissioners who serve two-year terms. The Board is empowered to set the rent ceiling for controlled rental spaces, issue orders, rules and regulations, conduct hearings, and charge fees (“Registration Fees”) to finance its reasonable and necessary expenses. Each October, the Board establishes registration fees and announces the estimated annual registration fee per rent-controlled mobile home space on or before November 1st of each year. Annual Registration Fees are paid by each of the five (5) mobile home parks (collectively, “Parks”) on or before February 1st of each year. Landlords are permitted to pass through registration fees on a monthly basis to all residents not on long-term leases. The monthly pass-through amount starts on each park’s anniversary date. The anniversary date for each of the five (5) mobile home parks is as follows: • Las Casitas de Sonoma - March 1st • Rancho Feliz - February 1st • Rancho Grande - February 1st • Rancho Verde - April 1st • Valley Village - April 1st The Board adopts its budget annually in May or June, and the fiscal year runs from July 1 through June 30. The registration fees are set in October, based on the previous fiscal year’s actual expenses. In October 2021, the Board chose not to collect registration fees for 2022. CITY OF ROHNERT PARK Mobile Home Rent Appeals Board 2 DISCUSSION: The annual fee for each space is determined by the total number of spaces in Rohnert Park subject to rent control (total budget / total number of rent controlled spaces). The number of rent controlled spaces in 2023 is expected to be 1,176 with the following in each park: • Rancho Verde: 300 spaces • Valley Village: 285 spaces • Rancho Feliz: 296 spaces • Rancho Grande: 170 spaces • Las Casitas: 126 spaces Attached as Exhibit A to the Resolution is the Rent Appeals Board Balance Sheet for Fiscal Year 2021-22. The total budgeted expenses for this period were $133,120, however, the year-to-date actual expenditures were $1,802.70, which came in at $131,317.30 under budget. Based on these expenditures, the annual fee per space would be $1.53, which would be a monthly fee of $0.13. Since this is a very small amount and the Rent Appeals Boards has sufficient fund balance to cover the budget for Fiscal Year 2022-23, staff is recommending that the Board not collect registration fees for 2023. This will provide some relief to households burdened by the increased cost of rent and goods increases due to inflation, with minimal impact to the Board’s budget. FINANCIAL IMPACT: Staff is recommending that the Board not collect registration fees for 2023. This would mean that the Board would have to absorb the Fiscal Year 2021-22 expenditures of $1,802.70. The Board currently has $259,992.27 in the bank, $100,000 of which have been set aside as reserves with $159,992.27 remaining in fund balance. These are sufficient funds to absorb the Fiscal Year 2021-22 expenditures. STAFF RECOMMENDATION: Staff recommends the Board adopt Resolution 2022-03 Establishing a Registration Fees of $0 for Mobile Home Spaces in 2023. Planning Manager Approval Date: 09/30/2022 Attachments (list in packet assembly order): 1. Resolution No. 2022-03 a. Exhibit A: Rent Appeals Board Balance Sheet and Income Statements for July 1 2021 through June 30, 2022 RESOLUTION NO. 2022-03 A RESOLUTION OF THE ROHNERT PARK RENT APPEALS BOARD ESTABLISHING REGISTRATION FEES FOR MOBILE HOME SPACES FOR 2023 WHEREAS, paragraph N of Section 9.70.030 of the Rohnert Park Municipal Code authorizes the Rohnert Park Rent Appeals Board (“Board”) to finance its reasonable and necessary expenses by charging mobile home park owners an annual registration fee which may be passed through to residents on rent control in the form of rent increases prorated over the year; and WHEREAS, the Board calculates registration fees based on the previous fiscal year’s actual expenditures; and WHEREAS, the actual expenditures for the period of July 1, 2021 through June 30, 2022 was $1,802.70; and WHEREAS, the Rent Appeals Board balance sheet for Fiscal Year 2021-22 is included as Exhibit A and demonstrates that the Board has sufficient fund balance to absorb the expenditures incurred in Fiscal Year 2021-22; and WHEREAS, given the financial impacts of COVID-19 and inflation on households, including those in mobile home parks, the Board desires to waive collection of registration fees in 2023. NOW, THEREFORE, BE IT RESOLVED that the Board will not collect registration fees for 2023, therefore no registration fees will be due by mobile home park owners to the City on February 1, 2023. DULY AND REGULARLY ADOPTED by the Rohnert Park Rent Appeals Board this 6th day of October, 2022. ROHNERT PARK MOBILE HOME PARKS RENT APPEALS BOARD ______________________________________ ATTEST: Chair _______________________________ Secretary AYES: ___ NOES: ___ ABSENT: ___ ABSTAIN: ___ Exhibit A Assets Cash in Bank $259,262.02 Total Assets $259,262.02 Liabilities & Fund Balance Liabilities Accounts Payable 0.00 Petitioner Deposit 0.00 Total Liabilities - Fund Balance Unrestricted as of June 30, 2021 161,326.00$ Reserves 100,000.00 Current Budget Cycle Income (Loss) (1,333.73) Total Fund Balance as of June 30, 2022 259,992.27$ Total Liabilities and Fund Balance $259,992.27 City of Rohnert Park Rent Appeals Board Balance Sheet As of June 30, 2022 For Management Purposes Only Prepared by City Finance Department RESOLUTION 2022-03 EXHIBIT A FY 21-22 Budget Year to Date Actual Budget to Actual Variance Income Annual Rent Control Fee Income 39,831.00$ -$ 39,831.00$ Interest Income - 468.97 (468.97) Petition Revenue 60,000.00 60,000.00 Total Income 99,831.00$ 468.97$ 99,362.03$ Expenses City Staff Costs 26,500.00$ 3,501.70$ 22,998.30$ Petition Expenses 70,000.00 70,000.00 City Attorney Expenses - RAB 15,000.00 15,000.00 City Overhead Costs from Cost Allocation Plan*1,244.00 (1,244.00) 2,488.00 Special Projects Expense 20,000.00 20,000.00 Postage and Shipping 126.00 126.00 Office Supplies/Duplication 150.00 150.00 Liability Insurance - - Meetings and Travel 100.00 100.00 Advertising- Sonoma Media - - Contract Services (455.00) 455.00 - Total Expenses 133,120.00$ 1,802.70$ 131,317.30$ Net Income(Loss)(33,289.00)$ (1,333.73)$ (31,955.27)$ Fund Balance, June 30, 2021 261,326.00$ Fund Balance, June 30, 2022 259,992.27$ *Allocated costs of shared City services from the City Manager, Finance and Human Resource Departments. For Management Purposes Only Prepared by City Finance Department City of Rohnert Park Rent Appeals Board Income Statement July 1, 2021 -June 30, 2022