Therese Skarda, City Attorney's Office: The agenda item for today is very limited in
scope and Council should be focusing on that matter alone.
Moermond: Dominium, the property owner, requested through the City's process to do a
rent increase of 8% for July 1, 2022 through June 30 2023. The current rent is $1,114.
An 8% increase amount to an additional $89, bringing the new rent to $1,203 per
month. Each of these two items were heard on at least two occasions, with each
hearing lasting at least an hour. There were also staff analysis meetings outside of
those hearings and that is why you may see extensive attachments. Dominium listed 3
reasons for an increase: unavoidable increase in operating expenses, decrease in
rental income, and a patter of recent rent increases or decreases. This increase was
filed using the self-certification process, which means that approval of the 8% increase
was automatic by the city. When we got the tenant appeal, I notified Dominium and
staff and asked that staff review the application to determine if the 8% increase
worked according to the numbers. After going through the numbers, the Department of
Safety and Inspections concluded that there was an allowable increase of 9.63%. The
math justifies an 8% increase that was asked for.
Cann: We accept the staff analysis that justifies a rent increase, so I don't have much
to say on this. I mostly plan on speaking to issues relating to the next item.
Councilmember Jalali: I just want to reiterate that we are making our decision today
based on the ordinance as passed by voters. The entitlement to a reasonable return
on investment and the staff analysis does justify the increase. I empathize with my
constituent. I don't want you to have to pay more money than you are able to pay, but
we are constricted by a process that does at least prevent an otherwise larger
increase. This definitely illuminates why we should not exempt affordable housing from
rent stabilization, which this council passed. We need to connect this to the big
picture. I move approval of Moermond's recommendation.
Adopted
6 -
0
Yea:
Councilmember Tolbert, Councilmember Noecker, Councilmember Prince,
Councilmember Jalali, Councilmember Yang and Councilmember Balenger
Nay:
1 - Councilmember Brendmoen
Absent:
Appeal of Jack Cann, Housing Justice Center, representing Katherine
Banbury, to a Rent Stabilization Determination at 720 SEVENTH STREET
EAST #330.
40
Recommendation to grant the appeal in part and allow a 6.12% rent increase was
adopted.
Also in attendance:
Jack Cann, Housing Justice Center, representing the tenant appellant Katherine
Banbury
Katherine Banbury, tenant appellant
Marcia Moermond, Legislative Hearing Officer: This is another appeal from a tenant to
a property owner's request for exemption to the rent cap. We had two legislative
hearings each lasting an hour. For the lease term of July 1 2022 through June 30,
2033, Dominium asked for a 7.1% increase of $96 per month, going from $1344 to a
new rent $1440. Dominium again listed the same 3 reasons for an increase:
unavoidable increase in operating expenses, decrease in rental income, and a patter of
recent rent increases or decreases. After going through the numbers, the Department