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<br />1WINÜTIESHOUSINGÐEvEWPMENTCoRPORATION <br /> <br />400 SELBY AVENUE· SUITE C <br />SAINT PAUL, MINNESOTA 55102 <br />(612) 292-0211 <br /> <br />June 22, 1992 <br /> <br />Ms. Denise Beigbeder <br />Community Development Specialist <br />Community & Economic Development Ramsey County <br />Suite 286 City Hall/Court House <br />15 W. Kellogg Boulevard <br />St. Paul, MN <br /> <br />RE: Calibre Ridge Rent Limits & Utility Costs <br /> <br />Dear Denise: <br /> <br />I am writing to request Ramsey County approval to adjust utility allowances <br />and rents at Calibre Ridge based on the NSP average utility cost estimates <br />and the new 1992 SMSA average household income statistIcs. <br /> <br />When Roseville submitted the Calibre Ridge application to Ramsey County it <br />assumed a rent structure based on 1991 HUD household income estimates; about <br />6% lower than the 1992 estimates. TCHDC is primarily interested in <br />providing affordable housing and thus would like to keep rents as low as <br />possible, however, the stringent MHF A underwriting criteria require that we <br />project a higher vacancy and larger operating budget than our experience <br />with other townhouse developments suggest is necessary. The MHF A required <br />budget is also larger than the one included in the revised HOME application <br />(letter dated March 13th). To accomodate this higher budget without added <br />gap or subsidy funds it becomes necessary to raise rents. Fortunately a <br />rent increase can still meet the requirement to make rents affordable to <br />households with incomes at 50% of median according to 1992 income <br />estimates. Gross rents are as follows using the low income tax credit <br />guideline to assume 1 1/2 persons per bedroom: <br /> <br />2 bedroom <br />3 bedroom <br /> <br />1991 <br />Max gross <br />rent <br />540 <br />624 <br /> <br />1992 <br />Max gross <br />rent <br />574 <br />663 <br /> <br />The utility averages have been reviewed by MHF A which indicate contract <br />rents could be set as follows: <br /> <br />2 bedroom <br />3 bedroom <br /> <br />1992 gross <br />rent <br />$574 <br />663 <br /> <br />Utility <br />allowance <br />$ 64 <br />70 <br /> <br />Contract <br />(Net) <br />rent <br />$510 <br />593 <br />