HomeMy WebLinkAboutCC 7 RENT INCREASE 10-01-84 CONSENT CALENDAR
NO. 7
10-1-84
Inter -Corn
FROM:
$ t~SJ Er.T:
APPLICANT:
_LOCATION:
HONORABLE MAYOR AND CITY COUNCIL
CO~4UNITY DEVELOPMENT DEPARTMENT
PERMISSION TO LEVY RENT INCREASE
DAVID JEFFERS
1971REN CIRCLE
BACKGROUND:
On July 19, 1982, the Planning Agency approved Use Permit 82-18 authorizing the
conversion of a residential duplex unit into a two-unit condominium project. As
a condition of approval, pursuant to Section 9274 of the Tustin City Code, rents
for tenants residing within the complex were "frozen". The City Code further
provides that rents may.be increased, if such a proposal is approved by the City
Council. ''
The Final Tract Map for the conversion was approved on March 5, 1984.
DISCUSSION:
As evidenced by the attached letter, Mr. David Jeffers is requesting
authorization to increase the monthly rent of the only remaining tenant who
qualified for the rent freeze. Mr. Jeffers wishes to increase the rent from the
1982 rate of $450.00 to $640.00 per month.
It will be recommended that the rent for the unit at 1971-A Ren Circle be
allowed to be increased to any amount that the property owner desires. However,
the conversion ordinance provides that relocation benefits are to be paid to
qualified tenants, if they are required to move from their units. The rent
increase proposed by Mr. Jeffers is substantial and would presumably impose a
hardship uppn the current tenant. Therefore, staff believes that the intent of
the conversion ordinance would not be fulfilled if relocation benefits are not
paid to the affected party.
On the other hand, if Mr. Jeffers were to limit the amount of the increase in
line with the Consumer Price Index and with increased utility costs, staff would
consider such a proposal as a reasonable request. Additionally, such an
increase would meet with the intent of the conversion ordinance, and relocation
benefits would not be required.
City Council Report
October 1, 1984
page two
RECO~ENDED ACTION:
Staff recommends that the Council, by minute order, authorize Mr. Jeffers to
increase the rent for 1971 A Ren Circle to an amount he deems appropriate.
However, should the percentage of rent increases exceed the established Consumer
Price Index since April 2, 1984 and combined with any increase in utility costs
incurred by Mr. Jeffers since that date, relocation benefits must be paid to the
affected party. April 2, 1984 is the date-the unit received final building
inspection, and the relocation benefits are outlined in the attached plan.
JD:do
Attachments: Letter to Council
Approved Relocation Plan
Community Development Department
August 30, 1984
Mr. Richard Edgan, Councilman
Honorable Member, City Council
City of Tustin
300 Centennial Way
Tustin, California 92680
Re: Tract No. 11752 (1971Ren Circle)
Gentlemen:
On March 5, 1984, your Honorable Body adopted Resolution No. 84-25 for Final
Tract Map No. 11752. As the Condo Conversion is now complete, I am requesting
that the rent "freeze" on the applicable unit(s)'be removed. Because the Real
Estate market is unfavorable for a sale-transaction at this time, I shall re-
sume the rental program that was in effect prior to my request to convert to
condominiums. I understand, Trom talking with the City Attorney's Office,.
that this procedure is in compliance with the intent of the City's Ordinance.
Thank you for your review of this matter, and my thanks to your Staff for the
help and consideration from the very beginning of this entire project.
Sincerely,
David T. Jeffers
DTJ:hb /
cc: Dept. of Community Development/City of Tustin
McFarland Management/Ken McFarland
IDENTICAL LETTER SENT TO MAYOR KENNEDY, MAYOR PRO TEM GREINKE AND COUNCILPERSONS
HOESTEREY AND SALTARELLI
April 23, 1984
APPRQVED RELOCATION PLAN
For Tract No. 11752
City of Tustin
Department of Community Planning
300 Centennial Way
Tustin, California 92680
Attn: Mr. Jeff Davis
Staff Planner
Re: Condo Conversion for Tract 11752
1971 Ren Circle, Tustin, CA 92680
Gentlemen:
This letter will serve as my "Tenant Relocation/Purchase Provisions" Plan for
the above referenced project as outlined in Ordinance 822, Section 4:
All persons who were tenants at the time of City Approval of the Con-
version were given notice of intent to convert one hundred and twenty
(120) days prior to the date of conversion and the right to purchase
exercisable within sixty (60) days in accordance with State Law.
(a)
I shall assist each person who was a tenant at the time of City ap-
proval of the conversion and who remained a tenant for one hundred
twenty (120) days thereafter or until the sooner issuance of building
permits, and to each person who becomes a tenant after City approval
who was not given written notice of the intended conversion by me be-
fore becoming a tenant, as follows: to each such person desiring to
relocate, a cash amount equal to twice the last month's rent paid.
(b)
As of April 17, 1984, both units were offered for sale in various
Real Estate Publications of Multiple Listings. I shall offer in
writing to those tenants described above, a 5% discount from the
listed sales price as a special financing incentive to purchase.
In addition, I w~ll also offer to carry back 10% of the listed sales
price at 10% interest for three (3) years and further reduce the
sales price by that amount I would be obligated to pay that tenant in
(a) above. If tenant decides not to purchase the unit being rented,
I shall offer a "first right of refusal" at such time when another
offer is made by another person.
(c) (Because no tenants, as described above, are of the elderly, dis-
abled, or handicapped, this section does not apply.)
(d)
I shall refund all cleaning and security deposits less that amount
needed for repairs and cleaning within two weeks after tenant moves
out of that unit. An itemized bill will be supplied to tenant for
such repairs and cleaning.
April 23, 1984
Pg. 2
City of Tustin
Department of Community Planning
Condo Conversion for Tract 11752
1971Ren Circle, Tustin, CA 92680
I shall offer assistance for moving or inconvenience expenses up to
one hundred dollars ($100.00). In addition, I as the relocation co-
ordinator, or my agent, will supply tenants with available directo-
ries offering similar units for rent.
(e)
I hereby agree that no tenant shall be unreasonably disturbed during
sales activity and shall, whenever possible, be given two (2)-days
notice for showing to "Realtor Previews" and "Open House Sales". For
convenience to the tenant a "Lok-box" shall be installed on all units
to be used only by qualified Real Estate persons.
This shall be the least of my assistance to "qualified" tenants as described
above when they desire to relocate or when the unit they are occupying becomes
sold, whichever comes first.
Sincerely,
David T. Jeffers, Owner
DTJ:hb
cc: Ken McFarland/MeFarland Property Management
Barbara Cambridge/1971 "A" Ren Cir., Tustin, CA.
Ci%!y/~ f Tustin
C6nu~unity Development Dept.
April 25, 1984