Pittsfield Rent Board OKs $30 Rent Increase for Lake Onota Village
Lake Onota Village owner Richard Baldwin answers a question for resident Amy Booth.
A number of residents from the mobile home park attended the meeting expressing their disapproval of owner M.H. Communities request for a hefty rent hike citing issues with the lots maintenance.
The owner's application to the board requested a 63 percent rent hike, or more than $200 per month, spread out over three years, but before the first meeting, it was revised to 29 percent, or $153 per month.
After the first Rent Control Board meeting in March, co-owner Richard Baldwin said the company worked to "shave" its operating expenses down.
During the board's meeting on Wednesday, the owners again revised its request, dropping it to a $33 per month rent increase year-over-year over three years.
The board approved a $30 increase.
M.H. Communities reviewed its operating expenses and removed revenue and some nonrecurring expenses, such as advertising, Baldwin said.
"So, we've done the best we can to shave our operating expenses down to as low a level as we can but the fact of the matter is, we haven't had a rent increase in 12 years," he said.
"In 12 years, we've had all of our employees get salary increases and inflation affects us just like it does the tenants. Everything that we have to buy services or materials goes up."
Residents and board members had raised concerns about "bad" debt being included as a miscellaneous expense for $16,455.
Baldwin said the figure is rent that "every attempt possible" has been made to collect but is apparent that it will not be collected, so is claimed on the taxes as an operating expense.
Board member Kenneth Ferris pointed out that the bad debt is a tax write off. By including it in the expenses, M.H. Communities is asking residents to reimburse it for the bad debt.
"While I appreciate you haven't had an increase in 12 years, you are still making money every year," Ferris said.
The profit margin is slowly shrinking due to employee raises and increased in costs, Baldwin said.
"We don't take money on a regular basis for the owners out of this park and most of the time we have to have enough of a surplus to cover things like road repairs, tree trimming, and the unexpected expenses, as well as the expenses that we know are coming," he said.
Board Chair Alisa Costa agreed that the bad debt is a loss not an expense and although the rent had not been increased in a while, the board has to consider today and not look as far back.
"I'd like to fall somewhere in between because I do think as [board member Jay Ogle] said, you have a right to that profit but a $33 a [month] is huge for some of these folks, and I'm always cognizant of that, Costa said.
"And I wish [the rent increases] had been incremental over that time. So I think somewhere in between and then some of the contingent on the the schedule of repairs that are listed."
Ogle said residents may feel that they are being taken advantage of because of a large increase in a short amount of time as opposed to smaller increments over the last 12 years when prime was below 3.25 percent.
"I think … maybe you guys [should] have more of an open quorum and communication, I know one of your folks mentioned communication, could help a lot with this community," he said.
The owners included in Wednesday's packet a list of capital projects it plans on completing totaling $88,075.
The lighting for the mailboxes is the only completed item; for 2024, projects include blacktop repairs within the park, and the installation of a pressure reducing valve and vault.
The two items without a determined date of completion yet are the demolition of two vacant trailers.
Of the 131 lots in the park, five of them are vacant and abandoned, co-owner Sheila Gallagher said afterward.
The owners are working on removing the abandoned trailers but it is a multi-step legal process.
Quotes from Lorenzo and Sons Trucking and Excavating for blacktop repairs is $185,000 and the trailer demolitions are $49,500.
Attendee Kevin Brazee asked if the owners considered taking up quotes from other contractors because the amount of $185,000 seemed steep.
"We contacted Mr. Lorenzo, we have a relationship with him. He's done well for us in the past. He did did give us a bunch of quotes and we asked for a lot of areas to be looked at," district manager John Richard said.
"He also went into with another contractor because of grinding, sweeping stuff that he doesn't do. In the past we've used the Patriot, we've used Donovan's. My philosophy has been that when you find a contractor that works with you, you sort of stick with them."
The packet also included a paid invoice from Gable Electric in the amount of $8,575 to add lighting at the mailboxes.
The park has been a great place to live but the amount the owners are asking for a rent increase is outrageous, resident Sharlene Perrault said.
She also emphazised the need for improved communication between the mobile home park staff and residents.
"I just like to say I love living there and I hope it continues to be something affordable for the upcoming kids that it's supposedly there for," she said.
"There are no amenities, no swimming pool, no swing set, I mean, you get what you pay for, I get it and that's why I lived there and that was a wonderful choice. That's all I'd like to say. Let's keep the rent to a minimal, if there is an increase."
A number of board members agreed with the 7 percent increase as it is the owners' rights based on the prime rate but did not agree with the additional 4.5 percent above the prime rate.
Ogle said, in a follow up, that he is in support of the spirit of the increases the owners are requesting because they should be allowed some profit, however, it has be considered reasonable for that profit.
"I think the concern is the fact that they are not servicing debt so that 7 percent becomes a moot point," he said.
Board members allowed the owners to consult with their attorney Jeffrey Scrimo, during a 15-minute recess so they could amend their application.
Following the recess, Scrimo presented the the new request of a $30. The owners can return to the board if they wish to request an increase in the future.
The board subsequently approved this revised application.
Tags: mobile home park,
