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Regular City Council Meeting Monday, September 08, 2008 Page 17 posed, Mr. Cann questioned if the City Council shouldn't be interested in the magnitude of those rent increases on a unit by unit basis; and monitoring whether the owners are meeting their Minnesota Statutory requirements at 20% of the units with fair market intent. Mayor Klausing questioned how this became a City issue, and questioned what Mr. Cann perceived the City's regulatory authority to be when told that the MHFA was responsible for administering compliance. Mr. Cann opined that this was a tax credit issue; and that based on the City's ap- proval of tax exempt financing, under the regulatory agreement, they were enti- tled to ask any question on compliance. Mr. Cann further opined that his inter- pretation, based on the Internal Revenue Code, was that the developer couldn't terminate tenancies without cause; and that the developer was obligated to explain either to the City Council or a federal court. Mayor Klausing opined that this issue seemed more court-appropriate than City Council related, in order to provide for remedy. Mr. Cann expressed his opinion that he would think the City Council would be in- terested. Mayor Klausing assured Mr. Cann that it wasn't a matter of interest, but a matter of authority. Mr. Cann opined that the City Council, based on determination of whether the amount of credits are necessary or not, had a lot of leverage and legal authority, as bond issuers who set this process in motion; and in determining the consequences of those actions. Mr. Cann noted that a number of long-term project residents were having their tenancies eliminated, and questioned how that would not be of interest to the City. Councilmember Pust refocused discussion on Mr. Cann's role in this situation, and questioned whether he was representing tenants. Mr. Cann advised that he was an Attorney with HPP, and was representing at least two of those residents having received evictions. Councilmember Pust asked Mr. Cann if he had gone to litigation on this matter. Mr. Cann responded, "not yet." Councilmember Pust asked Mr. Cann if he was a resident of Roseville, to which Mr. Cann responded, "no."