02 - Laserfiche WebLink

residents on grounds that the base year rents did not provide a fair return on investment. In addition, the owners of the two larger parks could call into question the continuation of the parks as senior parks. Recognizing, therefore, that it was in the best overall interest of the residents to reach some compromise with the owners, staff developed, in conjunction with resident committees at the two larger parks, and presented to the residents of the two larger parks new agreements, the key elements of which are set forth below. Vineyard Mobile Villa residents voted overwhelmingly (110 to 13) in favor of a new agreement. Hacienda residents also voted in favor of the new agreement (63 in favor, 17 opposed). Key Elements of the Vineyard Mobile Villa Agreements • Continuation of the Park as Senior Park • Elimination of the property tax pass through ($39.80) for those residents who moved into the Park prior to January 2002 • Permanent elimination of capital improvement pass throughs to residents • Reconstruction of Cereza Drive and other roads serving the east side of the Park; repair of roads serving the west side of the Park • An increase in monthly rents (effective January 1, 2008) of $34 for those who moved into the Park after January 2002, in addition to a cost of living increase on the base rent • A net increase in monthly rents of $28 (when compared to what they are currently paying) for those who moved into the Park before January 2002, in addition to a cost of living increase on the base rent • Annual rent increases will be no less than 2% nor more than 5% • Revised maintenance standards • More expedited dispute resolution procedures • Term of the agreement is five years but term will be extended to ten years if the owner gets approval to "convert" the Park; owner, however, if the park is converted, has agreed in writing not to sell any of the individual spaces for 10 years and to abide by any rent stabilization agreement • Upon a transfer of ownership (i.e., when a new resident purchases a mobilehome and moves into the Park), the new rent will be no more than the then highest space rent plus the last year's CPI Certainly the most significant of these items is the owner's agreement to accept the financial responsibility in perpetuity for the repair, replacement and rehabilitation of any existing capital improvements and for any new capital improvements. In exchange, the owner is receiving an increase of $34/month from those residents who moved into the Park after January 2002 and a net increase of $28/month from those whose residency predates January 2002. (The $28 is a net increase because although the property tax pass through [$39.80] is being eliminated for those residents, their increase is $68/month.) The residents are viewing these increases like an insurance policy. They believe that as the Park ages, more and more capital improvements will need to repaired and rehabilitated, the costs of which would otherwise fall on the residents as Page 4 of 7