--- title: Minutes - Final --- 15 West Kellogg Blvd. ## Saint Paul, MN 55102 ## City of Saint Paul ## Minutes - Final ## Rent Stabilization Appeal Hearings ## Marcia Moermond, Legislative Hearing Officer rentappeals@ci.stpaul.mn.us 651-266-8568 ## 1:00 PM ## Room 330 City Hall & Court House/Remote Thursday, May 21, 2026 1:00 p.m. Hearings ## Rent Stabilization Appeals 1 ## RLH RSA 25-25 Appeal of Henry Edelstein to a Rent Stabilization Determination at 1848 FORD PARKWAY. (To be withdrawn) ## 1848 Ford Parkway Appeal 11-7-25 ## 1848 Ford Parkway - Online Intake Form -- 11-2025 ## 1848 Ford Parkway - Maintenance of Net Operating Income ## Worksheet.9-3-25 ## 1848 Ford Parkway - Income and Operating Expense ## Worksheet.9-12-25 ## 1848 Ford Parkway Henry Edelstein Letter 11-20-25 ## 1848 Ford ParkwayTenant Letter 11-20-25 ## 1848 Ford Pkwy.Edelstein RS Ltr.1-14-26 1848 Ford Pkwy.Vang email 4-8-26 ## Attachments: Appeal withdrawn by owner. ## Withdrawn 2 ## RLH RSA 26-7 Appeal of Tenant, Michael Smith to a Rent Stabilization Determination at 1517 ## PORTLAND AVENUE APT D. Page 1 ## City of Saint Paul ## May 21, 2026Rent Stabilization Appeal HearingsMinutes - Final ## 1517 Portland Avenue Apt D- DSI Determination Letter 3-3-25 ## 1517 Portland Ave Apt D LHO Rec Ltr 7-13-26 ## 1517 Portland Avenue Apt. D- Landlord MNOI CAP Improvment Worksheet 12-28-25 ## 1517 Portland Avenue Apt D- MNOI 2-27-26 ## 1517 Portland Avenue Apt D- Request for Increase Form 1-18-26 ## 1517 Portland Avenue Apt D- Rent Roll 1-18-26 ## 1517 Portland Avenue Apt D- Property Tax Statment ## 1517 Portland Aveune Apt. D - Micheal Smith Statment + ## 1517 Portland Ave. Apt D- MIchael Smith Letter 1715 Portland Ave. Apt. D- Robin Doroshow & Richard Kronfeld Letter ## 1517 Portland Ave Apt D.Doroshow-Vang email 5-12-26 1517 Portland Ave.Rebuttal to Apt D response to upward variance 5-12-26 ## 1517 Portland Ave Apt D- Lease 1-1-25 ## 1517 Portland Ave Apt D- Lease 6-1-24 ## 1517 Portland Ave Apt D- Lease 9-1-23 ## 1517 Portland Ave Apt D- Lease 9-1-25 ## 1517 Portland Ave Apt D- Lease 11-15-23 ## 1517 Portland Ave Apt. D- Doroshow-Heintz email 5-21-26 ## 1517 Portland Ave Apt D-Lease 9-1-23 1517 Portland Ave Apt D- email 5-27-24 with lease ## 1517 Portland Ave Apt D- email 5-27-24 1517 Portland Ave Apt D- Lease 6-1-2024 month to month ## 1517 Portland Ave Apt D- email 7-26-2025 1517 Portland Ave Apt D- email 7-17-25 Update on Xcel Information 1517 Protland ave Apt D- email 10-27-24 with lease ## 1517 Portland Ave Apt D- email 2-28-26 ## 1517 Portland Ave Apt D- email 2-27-26 ## 1517 Portland Ave Apt D- email 8-27-25 ## 1517 Portland Ave Apt D- email 5-13-25 1517 Portland Ave Apt D- Lease Addendum B revised 8-13-25 to begin 9-1-25 ## 1517 Portland Ave Apt D- Staff Report.Final ## 1517 Portland Ave Apt D- email Attatchments 7-29-23 ## 1517 Portland Avenue Apt. D Appeal 4-7-26 ## 1517 PortlandAve Apt D- Addendum A 9-1-23 ## 1517 Portland Ave Apt D- Addendum B 2023 1517 Portland Ave Apt D- Lease 1-1-25 month to month ## 1517 Portland Apt. Apt D- Portland repairs-updates Kronfeld ## Doroshow ## Attachments: Page 2 ## City of Saint Paul ## May 21, 2026Rent Stabilization Appeal HearingsMinutes - Final ## 1517 Portland Ave Apt D- email Doroshow-Heintz 2-25-26 ## 1517 Portland Ave Apt D- Fire Inspection Report 6-25-26 1517 Portland Ave Apt D- email from Abbie Hanson Re. Inspection Report on 6-25-26 ## 1517 Portland Ave Apt D LHO Rec Ltr 7-13-26 ## 1517 Portland Ave. Apt D- email Doroshow - Heintz 7-13-26 Recommendation is forthcoming. Lynne Ferkinhoff, DSI-Rent Stabilization, appeared. Demetrius Sass, DSI- Rent stabilization, appeared. Michael Smith, tenant of 1517 Portland Ave Apt. D, appeared. Paul Smith, tenant’s father, appeared Legislative Hearing Officer, Marcia Moermond introduced staff and explained appeal and hearing process. Lynne Ferkinhoff presented the staff report: ## 1517 Portland Avenue - Apartment D On January 18, 2026, the Department of Safety & Inspections received a staff determination application for an exception to the 3% cap on rent increases per ordinance 193A. The application includes three of four residential rental units (Units, A, B and D) located at 1517 Portland Avenue. The appeal is for a single unit (Apartment D). The intake form is part of the record, and Robin Doroshow and Richard Kronfeld are listed as the applicants and owners of the building. The application includes a proposed rent increase of more than 10 percent. The applicants indicated on the intake form that consistent increases will apply to multiple units starting on April 1, 2026. The reasons for the increase listed in the application include: “An increase in real property taxes” “An unavoidable increase in operating expenses” Consistent with the rent increase exception process for staff determination, the applicants completed and submitted a Rent Roll and a Maintenance of Net Operating Income (“MNOI”) worksheet. The Rent Roll was used for two tenant mailings. ## 02/05/26: Notice of Application Postcard A mailing completed by the City’s print vendor informing tenants that their landlord requested an exception to the rent increase cap. ## 03/03/26: Staff Determination Letter A mailing completed by City staff informing tenants that their landlord was granted an exception to the rent increase cap and advising tenants of their appeal rights. The current owners acquired the building in 2022, but the Maintenance of Net Operating Income worksheet defaults to 2019 as the Base Year. Given the limited financial history available, the owners claimed a Base Year Rent Adjustment. The applicants described the services provided to each rental unit. Page 3 ## City of Saint Paul ## May 21, 2026Rent Stabilization Appeal HearingsMinutes - Final The landlord pays for sewer, lawn maintenance, snow removal (building, sidewalks, alley), repairs, pest control, Reduced Pressure Zone valve testing and related plumbing. The landlord additionally pays for electricity to the common areas, and for gas, water and garbage, and passes the costs through to the tenants. (The applicants note that they would like to pass through all costs to the renters.) The tenants pay for electricity in their units. The application included a completed: Capital Improvement and Expense Worksheet for roof repair, HVAC upgrade, and interior and exterior lighting. The applicants provided a spreadsheet version of the financial information with additional details about expenses and capital improvements. Owner Performed Labor worksheet for replacing power outlets, painting and cleaning carpeting. Landlord-performed labor is compensated at reasonable hourly rates, if documentation is provided showing the date, duration and the nature of the labor performed. The maximum allowed under this provision is 5 percent of gross income unless the landlord demonstrates that greater services were performed for the benefit of the residents. Staff reviewed the materials submitted by the applicants and worked with them to finalize the application, then issued determination letters to the: Applicants on February 27, 2026, granting approval of an exception to the rent increase cap. The approved exceptions were: ## Apartment A: 17.97% ## Apartment B: 17.97% ## Apartment C: 19.20% ## Apartment D: 17.97% Although Unit C was not included in the online intake form or the Rent Roll, property-wide financials were provided. Therefore, a property-wide determination was issued. Unit C was renting for a flat rate of $1,690 / month at the time of application. Tenants on March 3, 2026, informing tenants that their landlord was granted an exception to the rent increase cap and advising tenants of their appeal right she last Fire Certificate of Occupancy inspection rated 1517 Portland Avenue as a Class B property. A renewal inspection was due on June 22, 2025. There are no open complaints for this property. Marcia Moermond reviewed documentation submitted: • Base year 2023 • 2025 data in its entirety and used for analysis • Rent increase would be in effect in 2026 at the start of the next lease term in accordance with local/state law ## Michael Smith: • Lived in building 10 years • Building was sold a few years ago, Mr. Smith said that he had a terrible time with Page 4 ## City of Saint Paul ## May 21, 2026Rent Stabilization Appeal HearingsMinutes - Final realtor/people being in/out constantly. Building is for sale again. • Stated there had been no maintenance in his unit until last year, he had to beg for hot water to be fixed • The last time rent was raised, they didn’t go through the city’s process • Has only received 2 increase letters from the city Marcia Moermond: Noted that landlords are permitted to increase rent up to 3% without input from the city. ## Michael Smith: • Rent lowered after Mr. Smith and his father confronted landlord about raising rent without getting a city waiver rent • Says random fees have been charged: $200 with a spreadsheet, testing fee, maintenance fee • Robin and Rich have done no maintenance • Other tenant who has lived there left ## Paul Smith: • Robin “threw him under the bus” by asking if he is Mike’s conservator -he is not – he just helps his children • Disclosed that he owns millions in real estate and is relator/appraiser familiar with real estate • Change rent to “triple” net - landlord pays for utilities, etc. and increase was unfair. He suggested they turn it into condos if they want it set up this way. • His opinion they are selling it for too much, paid too much, it won’t cash-flow. He believes it is only worth 150K • Michael is a good tenant and pays rent on time, but he does not make a lot of money. • Michael’s energy bill is notably more than neighbors’, • Michael noted that Xcel wouldn’t come out to see why, Robin locked the thermostats • Paul is here to support Michael, and he will have to pay the difference of the increased bill to subsidize $400 -500/month • Thinks that owner overpaid, and he feels sorry for him. Paul researched nearby rentals several are $500/month ## Michael Smith: • Stated they want his rent to increase by $200 – his paycheck can’t cover it even though he has gotten raises ## Marcia Moermond: • Clarified what she can consider in her recommendation – • Asked about building maintenance and condition of oven ## Michael Smith: • Oven doesn’t work properly; refrigerator is inefficient due to age. • Thinks there should be better quality, given the amount they want to increase the rent. • Described conditions of building, hallway, etc. ## Paul Smith: • Agrees with Michael -the building is not worth the amount of rent ## Marcia Moermond: • Invited others to testify Page 5 ## City of Saint Paul ## May 21, 2026Rent Stabilization Appeal HearingsMinutes - Final - None ## Marcia Moermond: • Would like to request inspection. Bldg. is currently considered a class B building. ## Demetrius. Sass: • Clarified that C of O inspection was due in June 2025 • Will request inspector to look at inoperable oven. (not normally looked at) with C of O Inspection Likely 4 years since last inspection. • Will look for info from inspectors on the tree issue ## Michael Smith • Weren’t sure other tenants would be part of the appeal, but he felt it was important to try ## Marcia Moermond: • Noted that she cannot take tenants’ income into account for her recommendation about the increase ## Paul Smith: • Submitted Xcel Energy use statement ## Marcia Moermond: • Will follow up on previously mentioned issues • Many of the factors are private decisions and can’t be considered with the recommendation, even though it may increase the rent • Recommendation is forthcoming • Add C of O information to the record • Will provide a recommendation in writing ## Referred Page 6 ## City of Saint Paul