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Regular City Council Meeting 8s Executive Seaaion Monday, March 23, 2009 Page 17 amount of the non-compliance in relationship to the total bond issue; amendment to the Statute in 2001, adding this 20% requirement, without guidance or case law for reference; recognition in the statute of penalizing ongoing and blatant non- compliance; vacant units and their inclusion in compliance; income qualifications; and tax credits issued. Owner Attorney, Norm Jones Mr. Jones introduced Mr. Swenson to provide a general perspective of the project to-date and the overall context for discussions. Mike Swenson, Owner Representative with Partner Terry McNellis Mr. Swenson provided pictures and a review of the exterior and internal improvements completed to-date for individual units and community areas of the complex; and discussed the owner's reliance on the advice of Mr. Jones and other consultants for their expertise in addressing tax credit issues. Mr. Swenson admitted to the human error in those calculations and their immediate correction to those calculations, in addition to refunding monies to tenants as indicated. Mr. Jones took responsibility for the error; and asked that the City Council consider the merit of this issue, rather than allowing the meeting to become a forum for tenantllandlord complaints. Mr. Jones noted that, based on past concerns related to communication issues, a tenant advisory committee had been established by the owner to provide a more direct line of communication. Mr. Jones advised that it was the owner's intent to preserve affordable housing; and noted that a number of tenant complaints could not be addressed publicly, based on private data of individual tenants. Mayor Klausing thanked Mr. Jones and Mr. Swenson for their comments to put the overall project in perspective; however, he focused discussions on the statutory scheme related to substantial or insubstantial non-compliance. Mr. Jones referenced the letter from his firm dated March 16, 2009, laying out the entire year of compliance and lessons learned from that data presented. Discussion among Councilmembers, staff and the property owner included inability to refund several overcharges due to inability to find former tenants with three such incidents recorded; and clarification of the number of tenants who left following the ownership change at the complex, rent increases and notices to vacate. Juania Pekay, Consultant for Property Management Company Ms. Pekay addressed misinformation and inconsistent interpretation of calculations received from the MN Housing Finance Agency related to Fair Market Rents (FMR's) and tax credit regulations. Ms. Pekay opined that the amount of time they were out of compliance was only three months; and that as far as displacement, 27 households were indicated. Ms. Pekay advised that, prior