13 ATTACHMENTS - Laserfiche WebLink

Q If this conversion is approved by the City Council in 2009 but the sale of the lots will not begin for at least 10 years, what happens to my rent in the meantime? A Currently, rents for existing residents as well as new residents who move into the Park are established and controlled by a Rent Stabilization Agreement that the Park Owner has entered into with the City. If the conversion is approved, the Agreement runs to December 31, 2017 and between now and then, your rent will be controlled by the terms of the Agreement. There previously was a proposal from the Park Owner that if the conversion was approved on May 5, 2009, the Park Owner would agree to extend the term of the Agreement through 2025 for all existing residents, regardless of whether the resident is a lower income household or not. The City will discuss with the Park Owner whether this proposal is still on the table. If the Agreement is not extended, the City will negotiate with the Park Owner in 2017 to reach a new agreement. If such agreement is not reached, the City's Rent Stabilization Ordinance would take effect and would protect rents. Then when the lots started to sell, the State law provisions (see the next two questions) would apply. Q After conversion to resident ownership, what will be the rent for "lower income" residents? A After conversion [meaning the sale of the first lot], State law establishes the rents that can be charged to lower- income residents who choose not to purchase their lots and continue to rent. Rents may not be increased more than the average monthly increase in the rent in the four years preceding conversion and in no event may the rent increase be greater than the monthly percentage increase in the Consumer Price Index in the past year. This is essentially the rental formula that now applies to your annual rent increases under the City's Rent Stabilization Agreement. Q After conversion to resident ownership, what will be the rent for residents who do not qualify as a lower income household? A As to residents who choose not to purchase their lots but who do not qualify as a lower income household, after conversion, State law allows the monthly rent to increase to market level, in equal annual increases over a four -year period. The Park Owner represents that market rent in other parks as determined by professional appraisals conducted in 2008 ranged from $600 -$900. Because conversion will not occur for at least 10 years, it is very likely that "market level" rents at that time would be higher. But assume market level rent ten years from now were $1500 and that a resident who chose not to purchase his /her lot did not qualify as a lower income household and was paying $1000 /month in rent at the time of the conversion. That person's rent would increase about $100 /month 3