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opportunity to purchase the land upon which their homes sit. This conversion would not require any physical change to the property, alter the senior status of the park, or affect the rents currently charged under the rent stabilization agreement until the first sale of the lots take place 10 years in the future. The Council first considered the request in May 2009, at which time it expressed concern that residents needed more information regarding the proposal and directed staff to work with the property owner to conduct additional outreach. Thereafter, staff arranged for two meetings with park residents, providing an opportunity for the residents to ask any questions not otherwise answered by a "Common Questions and Answers" document that had also been distributed to the residents. Following those meetings, residents were sent a survey asking for support or opposition of the conversion as well as an explanation as to why. The City received 139 responses to the 208 surveys sent out and the overwhelming majority were not in favor of conversion. The most common concerns expressed included lack of interest in purchasing a lot, inability to obtain a loan as a senior, and the potential for increased rents. Mr. Roush stated that staff continues to recommend the Council approve this application, reversing the decision of the Planning Commission, because of the uncertainty in the way the current state law reads. He said the owner has complied with what appears to be the letter of the law and there is support for that reading of the law in the only appellate decision rendered on the matter to date. He noted that approving this application would defer for 10 years the sale of any lots and that any existing residents will be able to remain in the park indefinitely and continue to pay the rent currently provided in the rent stabilization agreement. Upon the sale of the first lot, those residents qualifying as lower- income households would continue to pay regulated rent. Mr. Roush stated that the Council previously acted to support legislation that would strengthen local control over mobile home rent conversions and would also support other public entities' litigation efforts to exercise increased controls over such conversions. He reported that the legislation is still pending and should it pass, staff would recommend the Council bring forth an ordinance providing the ability to regulate these type conversions. Vice -Mayor Cook Kallio questioned where the item currently is in the legislature and when resolution was expected. Mr. Roush said it was last amended in late July but is still in committee. Councilmember Thorne questioned how monthly income is calculated in the determination of low income and if income such as IRA distributions is considered. Mr. Roush stated that any income generated from an asset, such as stock dividends or IRA distributions, is considered income. Councilmember McGovern requested the results of the latest survey sent to park residents. Mr. Roush said the City received 139 responses of the 208 surveys that were sent and of that, 118 were opposed to conversion. Vice -Mayor Cook Kallio questioned how market value would be determined for the lots that were not subject to low- income rent thresholds. City Council Minutes Page 4 of 11 August 18, 2009