News

Rental Housing Committee passes 2022-23 budget, rental housing fee

Emily Ramos, a Rental Housing Committee member, listens to a speaker during a meeting on Feb. 11, 2019. Ramos and three other committee members voted to pass the committee's 2022-23 budget, including a $96 rental housing fee, on June 20. Photo by Magali Gauthier

The city of Mountain View approved a rental housing fee for the next fiscal year that’s lower than last year’s. But some landlords still say it’s too high.

The Rental Housing Committee voted to approve its $2.1 million budget for the 2022-23 fiscal year at a June 20 meeting. The committee oversees issues such as rent control and eviction protections through the city's Community Stabilization and Fair Rent Act.

To fund that budget, the committee also approved a $96 fee per rental unit that landlords must incur.

Rent Stabilization Program Manager Anky van Deursen said the number of rental properties subject to the city's rental housing fee is nearly 15,000 units and hasn't changed since last year.

Last fiscal year (2021-22), the rental housing fee was $102, making this year’s fee nearly 6% lower. But in the 2020-21 fiscal year, the fee was $85.

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Public comment on the item was mixed.

“They’re regulating landlords using landlord money,” said local landlord Jeff Zell. “We’re paying for this budget to get regulated by you guys, and we get punished every time. … These rates should be finding a way to come down, come down significantly, and stop screwing us every time.”

But others said that rental housing fees can be factored into rents, just like any other change to the market.

“I would just like to point out there is a tenant's point of view regarding the annual housing fee,” said public commenter Edie Keating. “It’s that there’s vacancy de-control, so while all the landlords are business people, they are certainly considering what the annual fee is when they are setting the rents that they are charging for new tenancies.”

The committee’s $2.1 million budget is roughly the same size as last year’s approved budget. The 2022-23 budget includes about $1.1 million for personnel, $173,500 for general operating costs, $416,500 for professional services, $133,000 for the IT system, and $296,360 for city resources and administrative support.

“The budget is just huge. It’s over $2 million,” said public commenter Theresa. “This is becoming really a bureaucracy that’s sort of feeding itself.”

But resident Alex Brown held a different view.

“You’re worth every penny,” he told the committee.

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Malea Martin covers the city hall beat in Mountain View. Before joining the Mountain View Voice in 2022, she covered local politics and education for New Times San Luis Obispo, a weekly newspaper on the Central Coast of California. Read more >>

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Rental Housing Committee passes 2022-23 budget, rental housing fee

by / Mountain View Voice

Uploaded: Wed, Jun 22, 2022, 1:57 pm

The city of Mountain View approved a rental housing fee for the next fiscal year that’s lower than last year’s. But some landlords still say it’s too high.

The Rental Housing Committee voted to approve its $2.1 million budget for the 2022-23 fiscal year at a June 20 meeting. The committee oversees issues such as rent control and eviction protections through the city's Community Stabilization and Fair Rent Act.

To fund that budget, the committee also approved a $96 fee per rental unit that landlords must incur.

Rent Stabilization Program Manager Anky van Deursen said the number of rental properties subject to the city's rental housing fee is nearly 15,000 units and hasn't changed since last year.

Last fiscal year (2021-22), the rental housing fee was $102, making this year’s fee nearly 6% lower. But in the 2020-21 fiscal year, the fee was $85.

Public comment on the item was mixed.

“They’re regulating landlords using landlord money,” said local landlord Jeff Zell. “We’re paying for this budget to get regulated by you guys, and we get punished every time. … These rates should be finding a way to come down, come down significantly, and stop screwing us every time.”

But others said that rental housing fees can be factored into rents, just like any other change to the market.

“I would just like to point out there is a tenant's point of view regarding the annual housing fee,” said public commenter Edie Keating. “It’s that there’s vacancy de-control, so while all the landlords are business people, they are certainly considering what the annual fee is when they are setting the rents that they are charging for new tenancies.”

The committee’s $2.1 million budget is roughly the same size as last year’s approved budget. The 2022-23 budget includes about $1.1 million for personnel, $173,500 for general operating costs, $416,500 for professional services, $133,000 for the IT system, and $296,360 for city resources and administrative support.

“The budget is just huge. It’s over $2 million,” said public commenter Theresa. “This is becoming really a bureaucracy that’s sort of feeding itself.”

But resident Alex Brown held a different view.

“You’re worth every penny,” he told the committee.

Comments

JustAWorkingStiff
Registered user
Another Mountain View Neighborhood
on Jun 22, 2022 at 2:41 pm
JustAWorkingStiff, Another Mountain View Neighborhood
Registered user
on Jun 22, 2022 at 2:41 pm

“This is becoming really a bureaucracy that’s sort of feeding itself.”
I was thinking the same thing.
Have you been to their seminars. Sure takes a lot of people to deliver simple non-technical presentations to small audiences. In the private sector, we would accomplish this with far fewer people, some of the things they do are fluffy and unnecessary. My neighbor has owned their rental property for a couple of generations, and have serviced the middle class community for going on 60+ years. This rental housing committee does nothing for their tenants. The only thing the RHC would do is add paperwork and expense. Thankfully, as far as I can tell, they ignore the RHC and focus on their tenants. RHC will say, oh, its just a little paperwork, just a little money. Funny how when it is other people time and money, it is not very much. I understand they want to weaponize the laws against people like my neighbor. Well, we'll see what happens if they try.


beelia
Registered user
North Bayshore
on Jun 22, 2022 at 6:04 pm
beelia, North Bayshore
Registered user
on Jun 22, 2022 at 6:04 pm

I agree with Alex. RHC does nothing that is "fluffy and unnecessary"- their presentations and staff reports are carefully prepared and delivered. Unlike landlords, they are not in it for the money.

It's not easy to understand the nuances of housing law, but they work their butts off to help us. Unlike most (but not all) landlords, they actually care about the people they serve.


JAFO
Registered user
Old Mountain View
on Jun 22, 2022 at 7:27 pm
JAFO, Old Mountain View
Registered user
on Jun 22, 2022 at 7:27 pm

I find it very funny that Sam Zell complains that:

“They’re regulating landlords using landlord money,” said local landlord Jeff Zell. “We’re paying for this budget to get regulated by you guys, and we get punished every time. … These rates should be finding a way to come down, come down significantly, and stop screwing us every time.”

FIRST, WHY SHOULD THE REST OF MOUNTAIN VIEW HAVE TO PAY FOR THIS PROGRAM?

Since I have business degrees, I know that if the market was responding to the forces correctly, landlords would not be having such problems. Because the market as Alan Greenspan would be VERY efficient and not allow for overpricing due to being efficient. But face reality, this market has been manipulated significantly due to only building luxury units in the city. My favorite comparison, this city builds only gas stations with 93 octane gas tanks and pumps, and expects the market to not have a problem?

The City has twice the needed luxury housing and in some cases less than half the needed affordable housing. Which means those with cars that run great on 87 or 89 octane cannot buy it.

You wonder why rents are so high?

By the way the recent addition of Mobile Home regulation does increase the cost, but that was not mentioned in the report.. Thus there was an increase in services that logically justifies the small increase, remember the firs fees were $162 a unit? Looks like they are VERY EFFICIENT here given that the cost has dropped by 42%


Ok
Registered user
Sylvan Park
on Jun 24, 2022 at 12:40 pm
Ok, Sylvan Park
Registered user
on Jun 24, 2022 at 12:40 pm

Since I have medical degrees, I diagnose you, holder of business degrees, with severe diarrhea of the mouth.


JAFO
Registered user
Old Mountain View
on Jun 24, 2022 at 1:47 pm
JAFO, Old Mountain View
Registered user
on Jun 24, 2022 at 1:47 pm

OK,

Doesn't the law and practice of medicine REQUIRE a medical workup and medical history BEFORE you make a diagnosis? In fact isn't it against medical practice to diagnose anything without an appropriate examination, and doing so can put your medical license in jeopardy?

In any event, what constructive discussion can we have here? Anyone have any information from a reliable resource to discuss on the topic? Or has the forum become nothing but a personal attack forum?

Please assist my Neighbor of unit 11 of 184 Centre Street regarding David Avny?

On June 6 her refrigerator failed, she notified our landlord, and our landlord took 17 days to get the refrigerator working again. But provided a broken minifridge to try to tie her over. I in fact provided her with open access to MY refrigerator so she could have food.

The problem, NOT only did she have 17 days of a misfunctioning unit, which is a breech of contract. David by not timely dealing with her refrigeration problem resulted in having all food spoil in her refrigerator.

This is FACT not opinion. And even today he was on-site, but refused to contact my neweghbor who is an over 80 yr old woman, she is a very nice person, has been an “angel” tenant of the building since the 1970s.

Please explain to the people reading here how this relevant information is not on topic?


JAFO
Registered user
Old Mountain View
on Jun 24, 2022 at 9:15 pm
JAFO, Old Mountain View
Registered user
on Jun 24, 2022 at 9:15 pm

David Avny tried to barge into my neighbors apartment tonight without written notice to giver her a letter “CLAIMING” that he has no responsibility regarding her refrigerator problems.

The first claim is :

“1)You are supposed to have a renter insurance policy. If you do, then call them and they will take care of you.” and "“2) Call GE Consumer Relations Department. Since the fridge was under it's first year of manufacture warranty, they will cover all your spoiled food expenses. Just call the following # 1-800-386-1215”"

That would be correct IF the current refrigerator was TIMELY DEALT WITH BY HIM. However given that he is trying to put all property management tasks on his tenant in this case is also a major problem. In fact he has been demanding that tenants do ALL THE WORK regarding property management the fridge went broken for 17 days.

Again, he is the owner of that appliance and NOT the Tenant. The legal process is that he must take action due to that fact. The bottom line is that David Avny has tried to put all property management responsibility onto an 80+ yr old woman, that has rented that space since the 1970s

I simply cannot understand how this kind of practice is even legal, just understand that my neighbor was in a unit where David Avny petitioned for a rent increase, and was denied twice. Here is a news article demonstrating it (Web Link

In effect ever since that situation, he has allowed for deteriorator of the units we live in. I will be making a new video showing the continued failure of her balcony. I have a previous video I did on 2021 on January 17.I will share it here (Web Link

And these landlords complain about bein mistreated?


JAFO
Registered user
Old Mountain View
on Jun 27, 2022 at 8:42 am
JAFO, Old Mountain View
Registered user
on Jun 27, 2022 at 8:42 am

Just another FYI

IU just saw another video, so I made one you can see it by googling "Mountain View Market Update 20220626"

The problem it demonstrates is this, the average net CAP rate for rentals is only 4.4%, meaning with the best management practices you are only to expect 4.4% annual returns. so for example my building costs $5M so the best case is you can only earn $220,000.

BUT, here is the real problem the current mortgage rates are 6%, and they will go up this month by at least .75% when the Fed raises rates again by 75 basis points. Which means by the endo of Aug it is likely that mortgage rates will reach 7%.

What does this mean? Well say you bought a property for $5M, your annual cost of borrowing will be at 6% is be $300,000, but if your best annual return is expected to be only $220,000, you will be at a lose of $80,000. AND THIS IS FAIR MARKET RATE OF RETURN.

There are safer more "passive" means of making money, they are called Corporate Bonds, and the current rate of return on them is 4.7% which is beating the rental markets. They are TRULY passive and require no EFFORTS at all And you can buy smaller amounts which means that you are not required to borrow any large sums of money to achieve better than the rental market.

Finally say the evictions restart in July, that means you will see a dramatic increase in vacancies, BUT NO ONE TO RENT THEM. Why, most likely they people in Mountain View will have lost their jobs due to the upcoming recession, we are already seeing job losses and job offer cancellations. Thus these people will truly be priced out of the market unless landlord are going to lower rents, or simply liquidate their units from their ownership. This is predicted in a great video titled "Wall Street Landlords Taking HUGE LOSSES. Forced Liquidations Coming."

Time for Mountain view to get ready for a major correction in these properties.


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