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FAIR
RENT COMMISSION
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JULY 12, 2006
ATTENDANCE: Richard Booth, Chairman (7:20 p.m.); Maria Borges Lopez;
Andrew Mattiello; Martin Bernard, Vice Chairman; Patricia Genuario;
John Church (7:10 p.m.); Mary Geake (8:10 p.m.)
STAFF: Elisabeth Youngerman
OTHER: Thomas Bucci, Attorney; Michelle Gaby; Tom Giordanella, MJB Realty,
Mike Geake
CALL TO ORDER
Vice Chairman Bernard called the meeting to order at 7:05 p.m.
APPROVAL OF MINUTES OF PREVIOUS MEETING – JUNE 2006
** MS. GENUARIO MOVED TO APPROVE THE MINUTES OF JUNE 2006 AS AMENDED.
The corrections to the minutes of June 2006 are as follows.
On page 2, 4th paragraph, 5th sentence, and throughout the document, change “Lowthert’s” to Lowtherts.
On page 5, 1st paragraph, 8th sentence, change “a lot of” to “more”.
** MS. BORGES-LOPEZ SECONDED.
** MOTION PASSED UNANIMOUSLY.
Mr. Church arrived at 7:10 p.m.
DIRECTOR’S REPORT
Ms. Youngerman said that the month of June was busy, with 100 intakes. Most of the new intakes were evictions and questions about lease terms. All the pending complaints have been resolved. There are no new commission members. She said that she and Chairman Booth gave a presentation recently for the public, along with all the Commissions from Norwalk, to offer information on the services they provide. The staff gave a presentation to the Norwalk Healthy Families Collaborative in June, and they have been invited to give a presentation to the YMCA in September. The Commission will be at both Senior Centers in August. The Family & Children’s Agency invited the Commission to their staff meeting.
Ms. Youngerman said that she had two pieces of information from the recent State Legislative Session. The RAP Program was expanded to an additional 200 families. The Security Deposit Guarantee Program has been expanded to include Section 8 families as well.
MOTION/VOTE ON OPEN CASES, AS NECESSARY
1548-05 Nunez, 33 Merwin Street #2. Complaint filed 12/22/05.
Recommend No Action.
Ms. Youngerman said that there is some progress with work being done on the house. The tenants are moving to Bridgeport soon.
Chairman Booth arrived at 7:20 p.m.
1551-06 Lowthert, 399 Main Street. (Merritt River) Complaint filed 4/04/06.
Recommend Close.
Ms. Youngerman said that a new lease was offered based on the Fair Rent Commission decision. The tenants are in the process of making a decision. The new lease is 6 months based on the Fair Rent Commission decision, and the next 6 months based on Merritt River’s decision.
** MS. BORGES LOPEZ MOVED TO CLOSE CASE #1551-06, LOWTHERT.
** MS. GENUARIO SECONDED.
** MOTION PASSED UNANIMOUSLY.
1554-06 Suneja, 93 Richards Ave. (Riverview) Complaint filed 5/01/06.
Recommend Close.
Ms. Youngerman said this complaint was the newly instituted storage fee. An
agreement was worked out, and the parties settled for a mid-point compromise.
** MS. GENUARIO MOVED TO CLOSE CASE #1554-06, SUNEJA.
** MS. BORGES LOPEZ SECONDED.
** MOTION PASSED UNANIMOUSLY.
1555-06 Gaby, 1 Elmcrest Terrace #9. Complaint filed 5/02/06.
Hearing scheduled for 07/12/06.
1556-06 DePino, 399 Main Avenue, #505. Complaint filed 5/02/06.
Recommend Close.
Ms. Youngerman said this is the second case from Merritt River, and a settlement has been reached.
** MR. CHURCH MOVED TO CLOSE CASE #1556-06.
** MS. BORGES LOPEZ SECONDED.
** MOTION PASSED UNANIMOUSLY.
1557-06 Thomas, 49 Glasser Street. Complaint filed 6/02/06.
Recommend Close.
Ms. Youngerman said this complaint was filed prior to the last meeting. There
were complaints concerning needed repairs and considerable rent increases. There
have been
several meetings with the tenant and the landlord. They couldn’t come to a
resolution. The tenant moved out 6/30/06, and they worked out an
arrangement to have the security deposit applied to the rent.
** MS. BORGES LOPEZ MOVED TO CLOSE CASE #1557-06.
** MS. GENUARIO SECONDED.
** MOTION PASSED UNANIMOUSLY.
1558-06 Weekes, 13 Lincoln Avenue. Complaint filed 6/05/06.
Ms. Youngerman said this case was never accepted by the Fair Rent Commission because the complaint was filed at the hearing. They negotiated on returning the security deposit upon moving out. There is no action needed.
SCHEDULED HEARINGS AT 7:30 P.M. – CASE #1555-06 1 ELMCREST TERRACE
Chairman Booth opened the hearing at 7:30 p.m. and said they would hear Case #1555-06, tenant Ms. Michelle Gaby, 1 Elmcrest Terrace, #9 vs. Landlord operating as Connecticut Ave LLC, located at 501 Merritt 7 in Norwalk. The tenant is represented by Attorney Thomas Bucci. Mr. Thomas Giordanella, Vice President of Property Management for MJB Realty was present on behalf of the landlord. Chairman Booth explained the procedure regarding the Fair Rent Commission scheduled hearing. He then swore in Ms. Gaby, Mr. Giordanella, Ms. Youngerman, Director of Human Relations and the Fair Rent Commission, and Mr. Lawrence Patterson, Field Investigator, Fair Rent Commission.
Ms. Youngerman read the list of exhibits that will be reviewed this evening. There were 12 in total.
Attorney Bucci pointed out Exhibit 1, page 2, question 13, showed an inaccurate rent amount of $975. He stated that Ms. Gaby paid rent of $1025 when she moved in during 2001. He said various rent listings were submitted by the respondent, in Exhibit 10, which listed the rent for an apartment building, and the converted house that Ms. Gaby rents in. Exhibit 12 shows the pertinent piece of property being Elmcrest Terrace that Ms. Gaby rents. He explained that a building listed as a comparable figure isn’t really comparable, as Elmcrest Terrace is a converted house. He said that Exhibit 6 is the statement from the Field Inspection Report, and it stated that it was a house that was converted into an apartment building. Also, it mentions that the apartment is a small, 1 bedroom attic apartment that is L-shaped and has angles with limited headroom and parts, and is closer to a studio efficiency unit, approximately 250 sq ft of living area. He stated that the report also said that the tenant’s housekeeping is good.
Attorney Bucci said that the unit is on the 3rd floor, three flights up, and is 250 sq ft, which is about half the size of the other units that are paying comparable rent to Ms. Gaby’s. In the rent rolls, the units that are indicated are significantly larger than the unit, basically a studio unit, in the attic portion of the house. He stated that the attic unit comparable is Unit #10, which is paying $800 a month, and it is larger than Ms. Gaby’s. He explained that Ms. Gaby relocated from West Hartford in order to be closer to her job in Stamford. She explained to the realtor that she couldn’t afford the rent of $1025, and asked if it could be lowered. The answer was no, so she then agreed to rent at $1025. She lived there for a few years, and when she talked to a few of the other tenants in 2004, she got the idea that she was being charged one of the highest rents in the building. She then asked for a rent decrease. The owner agreed to reduce the rent. Attorney Bucci stated that the landlord didn’t do it out of compassion, but rather he knew she was being overcharged. The landlord then reduced the rent again in 2005, but not to the $800 level.
Attorney Bucci asked what Ms. Gaby did to incur the latest rent increase of $35.00. He explained that he was here representing Ms. Gaby pro bono. During April of 2005, it was a cold month and there was no heat. When she called to complain, she was told that it was a cold month and they turn the heat off the first week of April regardless of the temperature. She made repeated calls with no response. She then called the Fair Rent Commission and the Health Department. The Health Department asked if portable heaters had been provided. She said no. She then paid the rent into escrow and brought action against the owner. The owner offered to put Ms. Gaby up in a hotel when the temperature fell below the required degrees for which heat had to be provided. The other tenants didn’t get any relief until the portable heaters were provided. He said that the owner gave Ms. Gaby a rent reduction in 2005 so that she wouldn’t complain. But after she filed the lawsuit and brought the complaint, they increased her rent $35.00 in 2006. For the small attic unit, she got the highest increase of all the tenants, who received a $25.00 or $30.00 increase. Some tenants didn’t receive an increase at all. He questioned Unit #6 going from $950.00 to $995.00 because the unit is vacant. Ms. Gaby said the vacant unit is much larger than hers. She said that in her unit, there is limited headroom, it’s not an eat-in kitchen, it will only fit a twin-size bed, and she needs two air conditioners in the summer, which means a high electric bill.
Attorney Bucci said that Ms. Gaby loves the apartment and wants to stay there. In addition to what was mentioned previously, Ms. Gaby highlighted some more differences between her attic unit and the other two attic units. There is no elevator to the third floor, there is limited window and closet space, her electric bill is higher than most of the tenants, there are no cathedral windows, and she can’t fit a sofa in the apartment.
In summary, Attorney Bucci stressed that Ms. Gaby’s complaint is not only the rent increase for this year is unfair, but the overall rental that she has been paying is unfair. It should be reduced to the level of what the other attic studio apartments are.
Mr. Giordanella said that they don’t rent in a vacuum. He stated that different markets dictate different rents. Not all the tenants moved in at the same time. The property is just about breaking even. He pointed out that a benefit for Ms. Gaby’s apartment is that it offers a view of Long Island Sound. There were two prior rent reductions given to Ms. Gaby. Referring to Ms. Gaby’s claim that the rent increase was in retaliation for the boiler situation, he said that the rent was reduced after she complained about the heat. And if it was in retaliation, the rent would have been increased in June of 2005. The boiler situation was rectified in April of 2005. He reiterated that they had offered to put Ms. Gaby up in a hotel. He referred to the incident log that he maintains on everything they did when the situation occurred. He said that Joy from The MJB office was trying to rectify the situation as well. They gave Ms. Gaby a $1600 cash credit for her inconvenience. The 3% rent increase is not retaliatory but rather a basic cost of living increase. He mentioned that there was a 20% increase in utilities. He said they felt it was a fair increase, after the two rent reductions given in the previous two-year period.
Chairman Booth asked Mr. Giordanella to clarify the boiler situation. He said that to his knowledge, they did not turn the boiler off. The boiler was in need of repair, and he had written proof.
Mr. Giordanella said that they have not received any other complaints from tenants in the building. He read from a State of Connecticut, Department of Social Services information sheet that has Fairfield County’s fair rent for a 1-bedroom apartment listed at $1264, and a studio apartment at $1038.
Attorney Bucci said that one would have to look through trees, wires, and the highway before you could see Long Island Sound. He said that the claim of the rent reduction being provided after Ms. Gaby brought the complaint about the boiler and the heat is not true. He pointed out that Ms. Gaby didn’t sign the lease on June 1. Ms. Gaby said she received the lease early, in April not May, because she had asked for a decrease. He referred to Exhibit 1C, dated April 30, and the other date on the documentation is May 5. Attorney Bucci stated that there was no attempt to provide Ms. Gaby with portable heat. He said that on the eve of the 2005 trial, the landlord agreed to reimburse for lost rent for when the heat was out. He said she received the rent that would have been paid for the period of time there was inadequate heat. He clarified that Ms. Gaby was told that the heat is turned off every April 1st and by law it can be turned on as late as November 15th. Ms. Gaby said she had called the Health Department regarding the problem, and the Health Department called MJB Realty.
Mr. Giordanella said the landlord’s position is that the case hinges on being a vindictive act. He said that at this time, after two rent reductions, a slight 3% increase was not unreasonable.
Ms. Genuario confirmed with Ms. Gaby that portable heaters were provided after the Health Department ordered it. In response to her question about a faulty gas meter, Ms. Gaby replied that there was a gaping hole underneath the sink. The landlord sent maintenance people to look at it. She said gas fumes were entering the kitchen from the basement. A piece of plywood was put down but was not insulated, so the problem continued. The gas company came out and said that the meters in the basement were defective and in need of replacement. The meters were replaced in May of 2005. Ms. Genuario asked Ms. Gaby about the heat being turned on as late as November 15 of each year. Ms. Gaby said by law, the heat has to be turned on when the temperature drops to 65 degrees.
Ms. Genuario asked Mr. Giordanella if he had received any complaints from other tenants in the building that are similar to Ms. Gaby’s, i.e. heating, gas leaks. Mr. Giordanella replied that he had not, but that in property management, they receive complaints daily which prompts them to respond. He confirmed for her that the boiler problem has been resolved.
Ms. Gaby said that the tenant in the unit below her had complained of the heat problem.
Mr. Giordanella said that under oath, he was unaware of when the boiler was shut off.
Ms. Borges-Lopez asked Mr. Giordanella to confirm if there were 3 attic studio apartments in the building. He said he wasn’t sure. She asked him to confirm that Ms. Gaby’s studio apartment was 250 sq ft. He said he was unaware of the square footage in her apartment, and in response to Ms. Borges-Lopez’s next question, was unaware of what the square footage was in the other two attic studio apartments. Mr. Giordanella said that MJB does not do the leasing for the units. She asked him to qualify the $1600 cash credit that was given to Ms. Gaby. He said it was in the form of a check, and it was compensation for the lack of heat. Ms. Gaby said that it was almost two months of no heat.
Attorney Bucci said that they paid the check, but they got out of the court the one month rent that Ms. Gaby paid into the court escrow. That was released to the company. Ms. Gaby confirmed that she did pay the rent for that month.
Mr. Church asked about the increase in gas and oil, and had there been any other improvements made to the building. There were capital building improvements listed at $900.00 on the information provided. Mr. Giordanella said the property is well maintained. There is general landscaping, wall repair, etc. that had been done. He said that they are getting ready to paint the complex, most likely in the Fall. He said the owner is requiring inspections twice a month from MJB Realty.
Mr. Mattiello asked if the figures on the apartment rentals provided a breakdown on square footage on the comparables. Mr. Giordanella replied that the property is in a nice area, and he didn’t feel that the rent was that far off from other rents. Mr. Mattiello asked Ms. Gaby to clarify being offered the hotel stay while the heat was out. Ms. Gaby said that she never went to the hotel, as the portable heaters had been provided by then. The period of time between Ms. Gaby’s complaint to the Health Department and having MJB ordered to provide portable heaters was one day.
Mr. Bernard asked Mr. Giordanella how many 1 bedroom units have living rooms. Mr. Giordanella said that he couldn’t respond, as the leasing agent was not there.
Chairman Booth asked Attorney Bucci if he was aware of any law that states the landlord has to set rentals based on square footage of an apartment. Attorney Bucci said no, but the Fair Rent Commission in Norwalk is there so that it is not a situation where the tenant’s rent is increased so high that they are forced to move out. He said that the size of the apartment is one of the aspects that the Commission uses to determine whether a rental charge is fair. He said that there probably is not a law based on square footage, but when you have an apartment that is the smallest square footage unit that is paying close to the highest rent, that is unfair. Chairman Booth asked if he was aware of any law that states the rent should be equal to any other tenant in the same building. Attorney Bucci said no and that he knew there is no rent control anywhere in the State of Connecticut.
Mr. Church asked when they were reviewing the rent increases, how did they decide on the amounts for each tenant. Mr. Giordanella said he was not involved with the rent increases. Mr. Church asked Ms. Gaby if she had looked at other apartments in the area. She said she had seen larger apartments for $975, but that she was not in a good situation to move now. She claimed that she had been a good tenant for three years, and she had become friends with other tenants in the building that had provided her the information of how much rent they paid. She just wanted the situation to become fair. She felt that the realtor had misled her. When she moved in during 2001, she claims that the realtor told her the other attic rents were over $1,000, when in reality they were only $775.
Chairman Booth said that Ms. Gaby stated in her tenant complaint that she does not have a cooking stove and refrigerator. He had documentation that both appliances were provided by the landlord. She said that she was confused about who pays for the electricity. She said that the appliances were provided, and that she pays for the electricity and the gas for the refrigerator and the stove.
Ms. Youngerman asked Ms. Gaby what the electric bills cost. Ms. Gaby replied that they run about $100/month and about $30/month in the winter.
Mr. & Mrs. Michael Geake arrived at 8:10 p.m.
Chairman Booth asked Ms. Gaby that if she felt that she was being treated unfairly, why does she want to stay there. Ms. Gaby said that she really only felt she had been treated unfairly as recently as April of 2005, and she enjoyed living there. She said she was not in a situation to move last year.
Attorney Bucci said that if Ms. Gaby had a legitimate complaint regarding heat and rent, why couldn’t she bring it to the Commission and why should she have to think about leaving. He said that the boiler broke down, and the landlord didn’t do anything about it until the Health Department ordered them to provide the portable heaters.
Chairman Booth said that when Ms. Gaby moved in during 2001, she must have felt the rent was worth it if she paid $1025. But now they are asking for $985, which is $40.00 less than what she has paid in the past. Attorney Bucci stated the size of the apartment and the price of the rent was not comparable to others in the building. Ms. Gaby mentioned that in the past few years, she had thought of moving to another apartment in the building, but there were no vacancies at that time. Chairman Booth said that Ms. Gaby provided documentation that showed the building evaluation had gone up from $886,000 to $1,063,000.
Ms. Borges Lopez clarified that the tenant that moved out was paying $950, and Mr. Giordanella thought the unit was still vacant. The rent listed for the vacant unit is now at $995.
Attorney Bucci said in closing that Ms. Gaby’s complaint is not just directed at the rent increase but at paying an unfair rent from 2001 until now. He asked the Commission to order a reduction going back to 2001. He thanked the Commission for hearing Ms. Gaby’s complaint.
Chairman Booth closed the hearing at 8:35 p.m.
CHAIRMAN’S REPORT
Chairman Booth gave his report. He mentioned that the City Hall Security Guard, Frank Schiana, had recently been let go from his job of 10 years. He had been a big asset to the Fair Rent Commission and was personable and polite. There is an article in the newspaper to have him reinstated, and there is a petition being circulated in support of Mr. Schiana. Chairman Booth had called the company that employed Mr. Schiana and was told Mr. Schiana was not an employee of the City, but rather the security company, and he had been let go.
Chairman Booth made reference to the earlier comments Ms. Youngerman made in her report and said that the Fair Rent Commission was the only Commission at the Open House to have a table set up. He mentioned that the Commission had not reviewed the “Commissioner’s Potpourri” in the recent meetings, and he asked the Commissioners if they had any interest in reviewing it. They mentioned that Mr. Church is a recent newlywed. There were no other items of interest to discuss.
DELIBERATIONS AND DECISIONS ON HEARING CASES
Gaby, #1555-06.
Mr. Bernard read the standards. Questions A, D, E, F, G. H. I, J, L and M had positive responses. Question B, sanitary conditions, Question C, number of bathroom facilities available, and Question K, damages done to the premises by the tenant, had negative responses.
The findings are as follows:
Findings:
1. The tenant moved in 5/01 paying a rent of $1025.
2. The tenant continued to pay the rent of $1025 until mid 2004, when the rent
was reduced to $975 after she found the rents in the building to be higher.
3. The tenant's rent was reduced again to $950 in 2005.
4. The tenant filed a complaint with the Health Department and in Housing Court
due to lack of heat in her apartment in 4/05.
5. Both the Health Department and the Housing Court found the landlord in violation
of code and ruled he had to provide portable heating units to the tenants in
apartments.
6. The landlord provided a rent rebate of $1600 in cash following the lawsuit.
7. The tenant paid 1 month's rent in escrow which was then turned over to the
landlord.
8. The landlord then provided the tenant with the $1600 rental rebate.
9. On the rent rolls, the apartment is listed as a 1 bedroom, but the square
footage would indicate it being closer to a studio apartment in size.
10. The management company was not able to supply the square footage of the
other attic units.
11. The assessed value of the building went from $886,300 to $1,063,000 in 2003.
12. The average rent increase was $21.50 for the apartments, with the exception
of Unit 7 (Vacant), and the complainant's apartment. The average rent increase
is lower than the complainant's rent increase.
13. The management company has in the past and is willing to continue to upgrade
and maintain the property.
Decisions:
The Commissioners had a lengthy discussion regarding the findings and the facts, and the decisions are as follows:
1. The Fair Rent Commission does not find the increase was retaliatory.
2. The Fair Rent Commission does not find the increase is unconscionable.
** MS. GENUARIO MOVED DECISION #1, THAT THE FAIR RENT COMMISSION DOES NOT FIND THE INCREASE WAS RETALIATORY, AND DECISION #2, THAT THE FAIR RENT COMMISSION DOES NOT FIND THE INCREASE IS UNCONSCIONABLE.
** MR. CHURCH SECONDED.
** MOTION PASSED UNANIMOUSLY.
** MR. BERNARD MOVED TO APPROVE THAT THE CHAIRMAN BE AUTHORIZED TO SIGN THE FINDINGS AND THE DECISION OF THE FAIR RENT COMMISSION IF IT IS FITTING WITH THE GENERAL CONSENSUS OF THE OPINION OF THE COMMISSIONERS.
** MS. BORGES LOPEZ SECONDED.
** MOTION PASSED UNANIMOUSLY.
Chairman Booth thanked everyone for their efforts. He said there won’t be a meeting in August unless something comes up.
MOTION TO ADJOURN
** MR. BERNARD MOVED TO ADJOURN.
** MS. GENUARIO SECONDED.
** MOTION PASSED UNANIMOUSLY.
The meeting was adjourned at 10:05 p.m.
Respectfully submitted,
Carolyn Marr
Telesco Secretarial Services
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