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HRA Meeting Minutes Tuesday, April 16, 2013 Page 8 1 vacancies, and advised that their rent had kept up with inflation over the last ten (10) years, 2 with annual increases between 1% and 1.5% over that decade; noting that the recent economic 3 decline had put every owner in a bind, along with other economic issues in the country during 4 that time affecting landlords as well as everyone else. 5 6 Amy Felts, Marketing Director with Steven Scott Management 7 Ms. Felts advised that her firm had 7,000 units around the metropolitan area and in Rochester; 8 and over their forty (40) years in operation, continued their mission to do the right thing, and 9 provide quality housing and retain long-term renters. Ms. Felts advised that she was attending 10 11 marketing for the group and on-site work with maintenance and caretakers of their properties, 12 and therefore had first-hand interaction with residents as well. Ms. Felts advised that she could 13 therefore provided perspectives from each of those various aspects. 14 15 Ms. Felts reviewed their Roseville properties: Hillsborough with 200 units off Rice Street, 16 north of Highway 36; Rosetree off Dale Street and Highway 36; and their pricing of $810 for a 17 1-bedroom and $999 for a 2-bedroom unit. Ms. Felts advised that they worked from a one- 18 year annual budget, with those budgets already written and needing to be operated within and 19 not having any room for a hit in the fall with this proposed initial inspection fee. To-date, Ms. 20 Felts advised that their firm was successfully increasing their rents by 4% annually, and that 21 seemed to work well for their firm, as well as for their renters, based on surveys of residents. 22 23 give them that while retaining long-term renters at a fair price within market demands. 24 25 Ms. Felts noted that there remained a shortage of affordable housing in the area; and further 26 noted that these older properties in Roseville wee more expensive to maintain, as noted by Mr. 27 Kelly, with just the cost for each elevator replacement costing $100,000,, in addition to new 28 roofs, and putting money back into other areas of the property simply to maintain it. Ms. Felts 29 ed to find a balance to keep long- 30 term renters. As an example, Ms. Felts referenced annual property reviews and resident 31 surveys, expensive in and of themselves; in addition to ever-increasing real estate taxes. Ms. 32 Felts noted that all of the new costs and mandates left less money for amenities and property 33 maintenance. 34 expressed her interest in seeing new development. However, as a developer, Ms. Felts stated 35 that she would not be interested in going to a city that was putting in regulations such as those 36 proposed in Roseville. Ms. Felts advised that her firm had a lot of properties in Brooklyn 37 Center and that area, and while they do a good job, she noted that their firm was more along 38 39 40 Ms. Felts opined that the proposed fees were high and she heard owners wanting to revitalize 41 their properties, and put money into hallways. However, Ms. Felts noted that their residents 42 continued 43 monthly increase of 4% of $35 per month in rent increases. 44 45 In a practical sense and as part of their company policy, Ms. Felts advised that they would 46 require one of their staff members to be available to go through each unit with an inspector. 47 Ms. Felts opined that it felt like an additional fee on top of their regular maintenance was an 48 additional penalty for Class A and B properties. Ms. Felt advised that their firm worked with 49 50 51 52 Chair Maschka thanked Ms. Felts for her comments. 53 54 In response, Mr. Trudgeon advised that the comments expressed about fees were well taken 55 and would be further addressed by staff. Mr. Trudgeon admitted that all parties were in the