Tonight, at 7:12 PM, the Park Commissioners for Somerset County adjusted rents for 12 rental properties occupied by park employees. The resolution was passed unanimously and without discussion by all seven of the Park Commissioners who were present. Voting were President Steven Fuerst, Vice-president Joanne Jaeger, and Commissioners Paul Consiglio, John Gillen, Dorothy Paluck, Gary Walsh, and newly-sworn-in Peter Schoberl. Absent were Robert Horowitz and Rose McConnell.
Here’s a summary: Fair market rental values were established for each property. However, an adjustment was made lowering the actual rental that will be charged park employees to below market value. The director’s home is the only exception. This new policy is retroactive to October 1.
Previously, the average rent paid for all twelve properties was an average of $357 per month. $2,067 is now the average monthly fair market rental value for these properties agreed to by the Park Commission. But that is not the average of what employees will be charged.
In its decision, the Park Commission consented to reduce the average fair market rental of $2,067 by $1,453, bringing the actual rental for park employees down to an average of $614 per month. This will result in a 72% increase over what these employees are now paying. Nonetheless, it will still leave the actual average monthly rental charged to park employees 237% below the fair market rental value which the Park Commission has used in its own calculations.
The Park Commission is reducing the average fair market rental value of $2,067 by $1,453 down to an actual of $614 to be charged on average to its employees. The reason given for this is that the reduction of $1,453 is considered to be a “lease obligation adjustment” given to park employees as an “offset” to account for the fact that these properties are “located on government owned property and occupancy is restricted to full-time employees.”
Consequently, the Park Commission claims that, “this restriction substantially reduces the rental value of the property.” Additionally, the Park Commission states that, “There are additional employee occupant obligations”… and that, “All obligations carry clear additional rent offset duties.”
Note: I emphasize that I have compiled the detailed information provided by the Park Commission into averages to provide a bird’s-eye view. At least one park employee has seen his rent increased significantly, while another, whose rental home carries a fair market rental value of $3,700 will continue to pay no rent at all.
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