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survey should have been done at the end of the process; however, they needed to follow State law. Commissioner Narum requested an explanation of the statement in the minutes of the January 2009 mobile home park meeting quoting Ms. Forbath as saying that the "rent structure will likely change." Ms. Forbath replied that currently the rent protections in place under the rent stabilization agreement apply to everybody across the board, but that upon conversion, the formula and structure would change, with a different set of rent protections for lower-income and non-lower-income residents. She explained that the agreement currently allows pass-throughs for capital improvements, inspections, and fees, and rent can be increased, whereas under the State law, there would be no more pass-throughs and would be strictly limited to CPI. Mr. Roush stated that this is correct and added that staff negotiated out the capital improvement pass-through for this particular park and that the owner has agreed to pay for all capital improvements. Mr. Close inquired if, assuming there is no rent :>tabilization agreement in 2019; pass- throughs would be allowed under rent stabilization rules of the City. Mr. Roush replied that the owner has entered into a separate agreement wherein the owner is picking up all capital improvements in the future, which was negotiated as part of a rent increase in 2008. Ms. Forbath stated that renters would not be paying HOA dues and that the owner would pay for all spaces that did not sell. She added that even if the dues increase, he could not pass on that increase to residents. Commissioner Narum inquired whether the park. owner had agreed to rent stabilization until the conversion took place. Mr. Close said no; he has agreed to it until 2017. Commissioner Narum noted that there would then potentially be a three-year gap where he would come under the ordinance. Mr. Roush stated that the City has a history of negotiating agreements with the owner; however, if staff is unable to do that in 2017, the ordinance would apply until the conversion took place. Commissioner Narum asked Mr. Close if the owner was agreeable to a condition to ensure the park remains asenior-restricted park. EXCERPTS: PLANNING COMMISSION MINUTES, February 25, 2009 Page 9 of 19