Township can mediate rent dispute, but not much else

By: Cara Latham
   WASHINGTON — While township officials say they are doing their best to try to resolve a growing number of disputes between residents living in Mercer Mobile Homes and the park’s owner, there may not be much else they can do besides act as mediators.
   The biggest complaint from residents who live in the 147-unit park on Route 130 is that the park’s owner, Larry Kaufman, miscalculated lot rental fees for a number of years, causing residents to be overcharged. And they say he’s been uncooperative and unresponsive when asked to fix the problem.
   A fair solution, residents say, would be for Mr. Kaufman to issue a credit to each homeowner who paid more than he or she was supposed to.
   Township Administrator Mary Caffrey previously said that an attorney for the residents and the township’s chief financial officer have estimated there collectively could be about $22,000 in overcharges since 2003.
   The rent calculations are based on the consumer price index increase for the Philadelphia-Wilimington-Atlantic City region, but residents allege Mr. Kaufman improperly set the rate for the 2003-04 year, and since then, overcharges have accumulated.
   However, Lori Greenberg, attorney for Mr. Kaufman, said Monday there was no actual overcharge. The formula for calculating rent was changed by the township Rent Leveling Board in September of 2003, and her client’s rent for that year had already been approved by the township the previous June, using the same formula it had been using in the prior five years, she said.
   Mr. Kaufman’s rent calculations were even approved by the Rent Leveling Board that year and every year since, she said.
   Ms. Greenberg argued that a May Rent Leveling Board hearing on the matter violated her client’s rights to be notified of the hearing ahead of time, and the meeting was cancelled.
   The ordinance states that any hearings on rent increase or decrease required notification to be sent to both parties, Ms. Greenberg said. She also said that the homeowners association didn’t pay fees to file the application for the hearing.
   Sally Harrison, president of the Mercer Mobile Homeowners Association, said Monday the association plans to file for another hearing.
   Ms. Harrison, who spoke during the July 26 Township Council meeting, said that in addition to still not having any resolution on the previous rent overcharges, ‘Mr. Kaufman did not correctly post notice about this year’s new rent increase. Residents have to be notified 30 days before the rent increase goes into effect, she said.
   While Ms. Harrison said she believes the increase for this year was calculated correctly, she said Mr. Kaufman sent a letter postdated July 19 to the residents, telling them of the 3.9 percent increase in this year’s consumer price index. Township Attorney Mark Roselli said at the meeting his copy of the notice was dated June 26, but Ms. Harrison said the letter was postmarked July 19, and residents didn’t receive their notices until at least July 21.
   Ms. Harrison said she printed a correction notice to send to residents — which she said Mr. Kaufman’s community manager signed — advising them not to pay the new fee until Sept. 1 because they weren’t given the 30-day notice. However, she said some of the residents already paid the new fee because they were scared to be charged a $40 late fee if they didn’t pay by Aug. 1.
   The actual index increases affect each resident in the mobile home park differently, according to the size of their lots. Residents pay lot fees, which include water, sewer and garbage removal fees, and 18 percent of their yearly total goes to taxes, Ms. Harrison said in the past.
   The consumer price index, which measures changes in the retail prices of certain goods and services, is determined by the U.S. Department of Labor. The township’s ordinance requires Mr. Kaufman to apply to the township every year to have his rent calculations — which he sets using the index — certified. The new rent rates go into effect each August.
   Ms. Harrison said the amount of monthly increase this year will be between $15.87 and $20.52, depending on the type of rent each homeowner pays.
   But there are other concerns. Residents also have said that maintenance work around the park is not being done, and they have concerns that if it is done, those costs would be passed onto them.
   In an effort to resolve the disputes between residents and Mr. Kaufman, Ms. Caffrey said during the meeting that multiple attempts by township officials have been made to schedule a private meeting with Mr. Kaufman for August.
   Ms. Greenberg said she and her client would not agree to a private meeting until she is told who will be there, and is given an agenda with a list of the residents’ complaints.
   Ms. Caffrey said the township’s current rent control ordinance might not provide as much assistance to the residents because the disagreements between them and Mr. Kaufman are beyond the scope of the ordinance. The ordinance more or less puts the burden of proof on residents and limits the ability of the township to assist them in resolving the matter, she said.
   "The nature of the disputes between Mr. Kaufman and residents often comes down to the way they interact with each other," and it’s very hard for government to regulate how they treat each other, she said.
   Mr. Roselli said even though the township has the rent control ordinance, park owners usually try to get relief from these types of ordinances because it doesn’t allow them to increase rents to pay for taxes or for improvements to the parks’ infrastructure.
   "The park owners have this dilemma of, ‘What do I do, and how do I address this capital improvement?’" Mr. Roselli said.
   Ms. Greenberg echoed the sentiment, saying that the ordinance is highly restrictive and doesn’t provide any incentives to Mr. Kaufman because it doesn’t permit money to be raised for capital improvements, nor does it allow him to charge a new rent to a new tenant after someone moves out.
   "Where’s he supposed to come up with that kind of money?" she said.
   Mr. Roselli said the township can suggest and encourage Mr. Kaufman on what to do, but it can’t force him.
   "As long as he’s meeting what the law requires … there’s not much else we can do, other than trying to sit and be an ombudsman between the residents and the park owner to try to get a solution," Mr. Roselli said. "And I think that’s what we’ve been trying to do."