On Sept. 22, the Yucaipa Mobilehome Rent Review Commissioners met to continue the hearing from Aug. 25, for an increase of rent to the residents of Valley View Mobile Home Park by Augusta Communities, LLC.

City Staff Attorney Don Lincoln said, “Here the applicant is the prevailing party because he did receive a rent increase.”

Lincoln continued with “Staff submits the commission should find the reasonable amount of fees to be awarded in this case and is what Dr. Barr indicated $59,306. That would result in a five-year temporary rent increase of $15.66 and a fixed payment of $790.75 … There were additional costs to all parties due to the applicant attempting to use it’s non-profit status to raise claims that proved to be unsuccessful … Here there were several accounting errors, which required much additional work by both staff and applicant to resolve. Therefore at least some amount of applicant’s time and effort was apparently spent in correcting it’s own errors to the extent that commission believes the applicant is entitled to additional fees, staff has proposed a slightly alternative approach which would increase the fee recovery which would result in $20.05 space per month or a fixed payment of $1,012.84. Staff believes that those two numbers either Dr. Barr’s or the alternative is appropriate in this case where the applicant was successful in getting a substantial rent increase.”

Commissioners voted to grant an additional temporary rent increase in the amount of $15.66 per month, per space for a period of five years at an interest rate at 7% per year based on the amortized cost to Valley View Mobile Home Park for preparing the application and participating in the hearing process in accordance with Dr. Barr’s analysis and his report.

Commissioners voted to grant the residents of Valley View Mobile Home Park the option of paying the temporary rent increase representing the costs associated with the application and participating in the hearing process of $790.75 in a lump sum without any payment of interest rather than amortized over five years.

Commissioners voted that the temporary rent increase that was just determined shall not be included in the base rent for the purposes of calculating any future rent adjustments and the amortized amount shall be identified as a separate line item, itemized on a monthly rent invoice.

Mobilehome Rent Review Commission finds that the rents, as adjusted by the MNOI monthly adjustment of $60.21 per space per month, will provide applicant with a fair return.

An audio of the proceedings can be found at http://yucaipa.org/live.


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