Orange board seeks more financial facts on Leisure Woods Estates

The Mobile Rent Control Board is expected to make a decision on a potential rent increase at Leisure Woods Estates at its Aug. 14 meeting.

The Mobile Rent Control Board is expected to make a decision on a potential rent increase at Leisure Woods Estates at its Aug. 14 meeting. STAFF PHOTO/CHRIS LARABEE

By CHRIS LARABEE

Staff Writer

Published: 07-17-2024 4:39 PM

ORANGE – A decision on whether Leisure Woods Estates can raise its monthly lot fees by 43% will wait until at least August, as the Mobile Rent Control Board requested additional budget information.

Leisure Woods Estates Inc. is petitioning the board to allow the company to charge tenants $588 per month, which attorney John Kuzinevich said would allow the mobile home park to keep up with inflation and the economic climate.

“Virtually all the money flowing through has gone to operating expenses,” Kuzinevich said. “The [town] ordinance says the owners are entitled to a reasonable rate of return. I don’t want to lose sight of that.”

The focus of Tuesday night’s hearing, which was continued from June, was a review of the park’s budget. As the board went through each line item, its members determined they would like to see some extra detail, as well as full budget expenses from 2023 because Leisure Woods provided expenses for 2021 and 2022, but only a partial report for last year.

“I’m feeling like we need to make sure that we have an opportunity for you all to come back with exact details,” said Rent Control Board Chair Jane Peirce. “We have to do our due diligence and look at the application and the information that was given and consider that request.”

The town’s Mobile Home Park Rent Control Board bylaw was adopted at a 1986 Special Town Meeting and allows the board to regulate rents “so as to remove hardships or correct inequities for both the owner and tenant of such mobile home accommodations.” Additionally, the bylaw states adjustments may be made – either upward or downward – to levels “which yield to owners a fair net operating income for such units.”

At the center of discussion were requests for breakdowns of line items for maintenance and payroll, as Glenn Gidley, principal owner of Leisure Woods Estates, detailed road repairs, the removal of dozens of trees by resident request and other general maintenance work.

“The budget numbers were derived from prior years’ experience and prior years’ expenses,” Gidley said, describing the $75,000 line item as an “aggregate of all maintenance and repair.” 

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“Maintenance calls also include electrical service, sewer pumps, sewer pump maintenance … I can go on and on,” he said.

As for the projected $170,000 payroll, Leisure Woods budgets for three full-time employees – residents in the crowd pushed back on this claim – with several positions being filled by family members, including Glenn’s son Adam Gidley, who is the part-time operations manager.

“There are things that go on that the residents might not see,” Glenn Gidley said, regarding residents’ claims that there isn’t enough work happening to justify these wages. “These positions are being covered right now by family … if I had to hire somebody else, it would be substantially more.”

With no new additional information coming from residents or Leisure Woods, the board opted to close the public hearing and will reconvene on Aug. 14 to make a decision, with the hope that Leisure Woods can provide some additional breakdowns in expected expenditures, as well as the full 2023 expenses.

“We’d like to see some of the things that we requested,” said board member Andrew Smith. “We want to minimize the negative impact; that’s going to be a part of the decision. We do appreciate your candor and openness.”

Gidley also addressed two rumors brought forward by residents at the hearing, with some folks alleging Leisure Woods had been sold and that Salem Manufactured Homes had a stake in the park. Leisure Woods does its banking and other general business in Salem, New Hampshire, however, he said business being conducted outside of the rental property’s town is “customary at just about any rental property.”

“That is an emphatic no,” Gidley said of the park being sold before stating Salem Manufactured Homes has “no interest in Leisure Woods Estates.”

“There is no cross-ownership, there’s no cross stockholders, there’s no other entities,” said Gidley. 

Chris Larabee can be reached at clarabee@recorder.com.