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Regular City Council Meeting Monday, September 08, 2008 Page 22 had informed her that the owner was at least a year away from any kind of com- pliance, and that they hadn't qualified for at least a year. The speaker further noted her conversations with Senator Marty and his comments concerning this type of tax credit only serving to take money from a small pool of bond money for affordable housing in metropolitan cities, and put that money into the pockets of developers. The speaker related specific incidents and experiences of residents; addressed the high turnover; and expressed concerns with the owner's manage- ment firm, Kingwood Management and past issue of which she was aware. The speaker opined that residents had lived in a construction zone for over a year, and the results of their inconvenience were increased crime; increased police calls; neighbors unfamiliar with each other; and lack of response from Kingwood Management to expressed concerns of the rental community. The speaker asked for the City's assistance, stating, "this is my home." Mayor Klausing suggested that individual Councilmembers provide their specific questions to staff for follow up; that the agreement be reviewed by staff; the status of the application to the MHFA be reviewed; and information requested of the developer by Councilmembers and/or staff be directed to staff to forward to the City Council for further review; with staff providing the findings of their investi- gation to the City Council for further discussion. Mr. Jones clarified the process, based on the City Council as bond issuer and the MHFA as writer of the qualified application plan; the previous preliminary de- termination as to the amount of credits when the bonds were issued; and the pend- ing final determination when the project is placed in service, upon completion of the renovations and costs identified. Mr. Jones advised that the first phase had been completed; but the second and final approval phase was yet to come, with renovations anticipated for completion late this year or by the end of January. Further discussion ensued regarding administering and monitoring processes; ad- ditional information on how other cities monitor compliance, and their specific thresholds, and their experiences in issuing this type of bond. Mayor Klausing suggested defining immediate questions related to this issue; and then referring the broader policy discussion to the H1tA, as to whether restrictions should be imposed on more difficult or complex projects; the consequences of fewer such projects; with those issues defined upon further review of the informa- tion on this specific project. Mr. McGillis noted that they had anticipated normal turnover, similar to most rentals, at 50% annually, which would have facilitated rehabilitation in a timelier manner allowing for release of those units for rental to other tenants. However, Mr. McGillis noted that they had not experienced that anticipated turnover; and that information received on the level of qualified tenants from previous owners