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Board Delays Approval for Rent Increase at Allendale Pines
By Brittany Polito, iBerkshires Staff
02:21AM / Tuesday, October 06, 2020
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PITTSFIELD, Mass. — The Mobile Home Rent Control Board delayed the approval of a rent increase for capital improvements at Allendale Pines on Monday evening.
 
The board requested more information and continued the meeting until Oct. 19.
 
Owners of the mobile home park, Eagle Allendale LLC, proposed a 53 percent rent increase over three years, resulting in a total increase of $120 a month. Over 20 years, this rent increase is expected to pay for capital improvements that are estimated to cost around $688,250.
 
Attorney Jeff Scrimo spoke on behalf of Eagle Allendale. He said the Allendale Pines Tenant Association is excited for improvements that this rent increase will bring for residents.
 
"This amount is staged and it is done in order to allow the tenants to acclimatize to the increase over a period of time, opposed to just trying to get all of that rent up front," Scrimo said.
 
This three-year staged increase would occur as follows: A $50 increase in the first year; $50 in the second year; and a $20 in the third year. This raises the lot rent from $220 in 2020 to $340 in 2023.
 
There is no interest attached to that amount, as Eagle Allendale is just looking to cover the capital costs of the improvements.
 
"The park could theoretically ask for more," Scrimo said. "But we're not looking to do that."
 
James Baldyga of Eagle Allendale and the tenant association worked together to agree on a rate of increase that tenants could reasonably afford. A signature of each of the association board members is attached in the project packet for the Mobile Home Rent Control Board.
 
"They worked together on this," Scrimo said. "The tenants were very excited about this project and they really want it to happen."
 
If the project is approved, construction would start as soon as possible so that winter doesn't slow down the operation. The $50 increase doesn't need to be effective immediately, it only needs to be implemented before work begins.
 
From the day of breaking ground to the asphalt paving, Brent White of White Engineering in Pittsfield said the project will take four to six months without any additional problems being found.
 
The budget is set to repair all infrastructures problems at once, including repaving the roads, reconstructing the water system, and repairing the sewer lines.
 
The last time tenants at the 55-lot park experienced a rent increase was in 2016, shortly after Eagle Allendale LLC bought the property. Rent went from $196 a month to $226 to catch up with an increase in operating costs over the prior five years.
 
At the time, $75,000 was set aside for initial improvements, but that amount wasn't enough to cover costs after larger problems were found.
 
Baldyga explained that he didn't want to address one of the problems without addressing all of them. For example, if only the roads were repaved, they would need to be torn up again when funds were met for repairing the water and sewage system.
 
With this rent increase, funding for all of the needed repairs will be met.
 
"We came up with a plan to completely reconstruct the entire water service, the water mains, and the water service lines throughout the park," White said. "And to reconstruct the entire sewer collection system throughout the park with additional manholes for the sanitary sewer and additional pump stations for it. There will also be a number of different isolation valves for the water system that will be much easier to control when the water services needs to be shut off on an individual service line."
 
Board member Justine Dobbs questioned these numbers. 
 
"I understand that these repairs are really necessary and I completely understand you need to raise the rent to be able to do that," she said. "But $120 is a lot for rent to go up." 
 
She reasoned that over 20 years, the tenants would be paying about $1.5 million to the park owners. She thought it seemed too much of an increase because it will not end after the project is paid.
 
Concerned about the fixed income of tenants at Allendale Pines, she asked leasing manager Sarah Pero how many people were evicted in 2019 and 2020.
 
Pero responded that two residents were evicted in 2020 and that over the past two years, seven tenants were taken to court for delinquent rent and a repayment plan was agreed on to avoid eviction.
 
"These are the improvements that tenants need and want for their quality of living," Pero said on behalf on the tenants.
 
Board member Alisa Costa asked how many residents were behind on rent, to which Pero responded that there weren't many because Eagle Allendale works with tenants to keep them in their homes. Currently, there are five Allendale Pines residents on the delinquency list.
 
While the Allendale Pines Tenants Association supports this project, several tenants  called into the meeting to express their concerns. Those who agreed with the rent increase for capital improvements wanted they see the repairs being done as soon as possible.
 
Thomas Connors of Allendale Pines said, "I agree with the rent increase as long as I would start seeing the work get done, I don't want to wait three years before we see any work."
 
Some tenants fear that improvements will not be made, similarly to the increase of 2016.
 
Tenant Colleen McMann shared her experience of having dirt in her lines from a faulty water system and being charged with the costs for repairing those out of her own pocket.  
 
"In 2016, when they did the rent increase, we were supposed to get improvements then and absolutely nothing has been done other than repairs," she said. "And as far as management in the park, I had a problem last winter where they did something with the sewer and I ended up with dirt in my lines, we were without water for a few days, and I was told that any of my pipes that were damaged were my responsibility."
 
Additionally, second homeowner Kathleen McMann Murdock expressed her concern for the elderly and disabled tenants who will be greatly affected by the rent increase.
 
"There's a lot of elderly that live here who are on a fixed income as well as disabled people on fixed incomes," she said. "And that 53 percent within the next three years is quite a jump when they promised four years ago to do these repairs."
 
Baldyga said there has not been any cash flow this year from the park, as everything went to operating expenses. He admitted that costs have already gone higher than the purposed $688,000, but there is some room in the budget for leniency.
 
Though, if the project goes over budget by more than $100,000, tenants would experience an additional rent increase.
 
"It is highly unlikely," Baldyga said. "But if the costs exponentially increase, we will need to increase the rent again."
 
The Mobile Home Rent Control Board will deliberate this subject again on Oct. 19 at 6 p.m.
 
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