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Attachment C <br />WINTHROP WEINSTINE <br />A7'Y JR.N E YS A.ND CqU NS ELORS AT LA\�' <br />Octof�er 31, 2008 <br />Mayor Craig Klausing <br />City of Roseville <br />2660 Civic Cenier Drive <br />Roseville, MN 55113 <br />RE: October 24, 200$ �etter from Jac�C Cann <br />Dear Mayor Klausing: <br />�orman L. ]unes fI[ <br />Direct Oial: (612) 6Q4-6605 <br />nji�ncs�(1: winthrop. com <br />We were copied on a letter dated October 24, 2008 frorn Jack Cann adciressed to yau. <br />The letter reiated to the intetpretatian of Minnesota Statutes Section 474A.047 which requires <br />that certain bond-financed apart�nent projects maintain 20% af the apartment units �at rents at or <br />below Fair Market Itents as �stablished by HUD. In this case our firm disagrees with Mr. <br />Cann's rationale, but agrees with him as to the end result. This represents a�reversal of our <br />�irm's previous position, and it was our advice on which the awner relied in determining its <br />compliance with this pro�t�ision. <br />The re�evant part of Minnesota Statutes 474A.047, Subd. 3(a)(2} provides as follows: <br />"{2) the rna�cirnum rent for at least 20 percent of the �an�ts in tk�e proposed residential <br />rental. project da not exceed the area fair market rerit or exeeption fair market rents for existing <br />hausin�, if applicable, as. established by the federal DepartmenC af Hot�sing and Urban <br />D ev�l apment. . . ." <br />Our firn� had }�re�ausly interpreted the first use a%ove of the terrn "rent" to rnean actual rent. As <br />recently as Tuesday, we informally received the saEne in�eipretation from a respor►sible official at <br />the Department af Finance, which has regutatary authority over this portian of the Minnesota <br />i.' <br />statutes_ However, after furth�r research by Briggs & Morgan, we kave conc�u�.ed our pasY <br />interpretation was in error and have notified our clien�. The owner is irnmediately correcting its <br />FMR rent limits going forward �a ta�ce into accaunt the utility allowance. <br />Looking backward, to discover the extent of the issue in the past, we reviewed past rent rolls <br />from ihe project, including for December 2007, May 2008 and June 2p08. We found the <br />foIlawing nurrtbers of units that were rented or offered for rent at or below the �'MRs {out of i 90 <br />total units), when properly adding utiiity allowances ta #he rent: � • <br />Suste 35f10 � 225 Saith $ixih Street � Minnc���nli.R,Mf' S5442-4G29 � MAIrv:(612)604-G400 j Fex�(632)604�680(1 j ww+.c:wintht'op_com � A Pr fesrronal Arsorietion <br />.�y- � •.o-s :hi <br />