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Wheel Estates To Raise Rent After Lawsuit

By Andy McKeever
iBerkshires Staff
11:22PM / Wednesday, February 22, 2012

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NORTH ADAMS, Mass. — Wheel Estates Mobile Home Park is in "deplorable" condition but the Mobile Home Rent Control Board begrudgingly approved another $33 rate increase for the park after Housing Court ordered it to take a second look.

That brings the total rent to $287 a month for lots in the park. But the board outright rejected the company's argument that it should be compensated with a rent hike for fixing the park roads.

Morgan Management sued after a 2010 decision allowed the park to increase rent by only a third of its request. The company alleging the board overstepped its bounds. With a Berkshire Superior Court ruling that the board should reconsider two aspects of the decision — road repairs and undercharging tenants from earlier capital repairs — company officials returned to the board on Wednesday.

Morgan's request for $141 increase was chopped down to $49 by the board in 2010 after rejecting the company's argument that it performed $24,000 worth of road repairs outside of $90,000 worth of past court-ordered work. That $24,000 could be made up for with rent, the company said. The board members weren't buying it, saying they didn't believe any road work was completed.

Board members claimed that even the court-ordered $90,000 in repairs was never completed, let alone an additional $24,000.

"I've been up there and you might have spent $90,000 somewhere but I don't know where," Chairman Wayne Wilkinson said on Wednesday. "I can't see where you spent that kind of money."

Board member Joseph Gniadek said the best road there was built 20 years ago and board members questioned who determined that the work was completed. Morgan Management's attorney Joseph Kelleher said the work was done in 2010 and it was on the city to go back to court and file a complaint saying it wasn't done.

While the city never filed a complaint, the court agreement mandated that the company fix potholes in the future. As far as board was concerned, that officially shut the door on the rent request.

However, on the undercharging issues, the unhappy board admitted it was wrong. When a capital agreement with previous owners drafted nearly 15 years ago had expired the rent never dropped.

In 2010, the board took that $88,000 in capital costs away from Morgan and put it toward rent reduction. But It failed to set a timeline, so tenants got back more in rent than they should have. The board agreed, by virtue of the state formula, that $33 more a month is the proper rent amount.

"The park up there is deplorable. These tenants deserve better," Wilkinson said. "It's horrendous that we have to give it to you."

Wilkinson said tenants are not getting what they are paying for, citing rotting wood in the recreation center and poor road conditions. But it was up to the board, he said, to balance the interests of both residents and business and determine a fair rate.

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The condition of the park is in poor shape. The roads are in poor shape as well. Morgan Management should be ashamed of the way they treat the people who are their customers. Many folks moved there when there was a useable pool. Shouldn't there be a rent reduction if all the ammenities are not available? What are folks to do when the park falls into disrepair? What is their recourse? They can't sell and leave because noone wants to buy in a poorly maintained park. Not to mention the value of the homes, which tend to depreciate over time anyway, are worth less because of the park conditions. I bet many are upside down on their homes and stuck there.
from: Adams Guy	on: 02-23-2012 12:22PM I Agree (20) - I Disagree (0)

I use to reside in the park, that was over 23 years ago when rumors of the park being shut down by Fusco Corp to build condo's. I recall it being a very stressful time for residents. Meetings were held among the tenants association whom considered buying the park. There were many heated discussions at those meetings as residents disagreed on which direction to pursue.. I believe a man by the name of Jesse Martinez a resident was the President of the tenants association at that time. He was a good man. I sold out and moved while things were in limbo. The park remained, and the condition of the park has spiraled downwards ever since. It is currently very sad state of affairs for those remaining at wheel estates. I feel very badly for the residents, as the management only appears to be interested in fleecing its tenants. They deserve much better. The city council needs to call on Morgan Corporation, and attempt to make them accountable.
from: Former tenant	on: 02-23-2012 01:48PM I Agree (15) - I Disagree (0)

As a new resident I must say, other than my new place the surrounding lots are dumps. When the office was approached an asked to enforce the park rules ie: garbage piles - junk vehicles/atvs/snowmobile in parts or whole stacked up like a salvage yard, the office hands u a multipage form to complete w copies that go to owners of said lot/s. This will now create hate between neighbors. This could be avoided if the park or city comes down on these potential fire hazards. N.A should be more like Wmst board and grow a pair an deny the increase.
from: New Resident	on: 02-23-2012 02:37PM I Agree (13) - I Disagree (1)

It is my opinion that the rent control board and city officials have failed, and let down the park tenants. The conditions at Wheel Estat are deplorable. Why doesn't the cities governing bodies hold Morgan Corp to stringent standards. If there is failure of compliance, the city should be allowed to fine Morgan Corp daily until such standards are met.
from: Resident	on: 02-24-2012 11:37AM I Agree (9) - I Disagree (0)

The rent control board should be ashamed of themselves. They speak of how they shouldnt do something yet they side with the park owners. The park is a hair above poor at best. They shouldve denied the increase and make them appeal the decision. What about new residents that did not reap the benefits of no increase but are now effected by this poor decision the board made. City raised taxes on property owners so they now have to screw the renters some how.
from: More Money Again	on: 02-24-2012 05:04PM I Agree (1) - I Disagree (0)
Editor: They did deny the increase - the court ordered them to look at it again.
I Agree (0) - I Disagree (0)

I used to live up there - the math says total revenue from lot rent @50,000 month, What's that, $600,000 a year? Not to mention what ever their receiving from the logging operation going on up here. Wheel Estates residents often get treated like second class citizens and it shouldn't be so.
from: old resident	on: 02-29-2012 03:14PM I Agree (2) - I Disagree (0)

Its 03-06 and ONCE AGAIN there is NO water in the park but heyyyy the owners got their increase due to a VERY WEAK N.A Rent Control Board so who really cares. On behalf of the residents.... Thanks
from: Fed Up Resident	on: 03-06-2012 12:16PM I Agree (0) - I Disagree (0)

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