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2009_0209_Packet
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2009_0209_Packet
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Mayor Craig Klausing <br />October 31, 2008 <br />Page 2 <br />Monih of Rent �fiiciencies 1-beds below 2-beds below 3-beds below Totai units % below <br />Roll belaw FMR FMR �'MR FMR belaw FMR FMR <br />Decerr�ber 2007 2 40 75 2 119 62.6% <br />May 2008 2 25 S L I 74 41.5% <br />7une 200$ 2 ' I 17 1 2l 11.0% <br />It is our conclusion, based on this data, that the project was in eampliance with the FMR <br />requirement through the end ai May 2Q08. <br />As stat�d above, as soon as we notified the awner of our changed inter�retation, the owner <br />immediately started carrecting its rent stz-ucture to come back into compliance this month. The <br />extent of the issue is the 5-mantt� pe�iod frotn June 2008 through this month during whieh the <br />project was in oztl}� partial'campiiance: <br />The owner hereby proposes to refiine3 rent to tenants accupying units whicfi were intended to <br />meet the FMR requirement during the period from June 2Q08 forward such that �he actual rent <br />plus utility all.owance meets the FMR rent restriction. <br />Although Mr. Cazin's letter rnakes the immedia�e cali to penalize the owner, we would suggest <br />that a penalty is unwarranted at �his time. The purpose of a penalty rs to induce voluntary <br />comp�iance or change behavior. As stated above, the owner thaught it was fully and voluntartly <br />in compiiance for th� entire period and relied on our advice in support of that. As soon as we <br />brought this matter to th�ir attention on Tuesday they began. correcti�e measures. Alsa, the <br />period a€noncampliance was very short. Fortunately, Mr. Cann's inquiry �t ti�iis tirrie atlowed us <br />to catch our error and have the owner correct it before the situation went on for a lon� periad of <br />Eime. Finally, it appears the situation can be completely corcected by refunds to ten�nts, bringing <br />the project back into fu�l compiiance. ° <br />An additional subrnission will be made to you when the corrective rrzeasures have been <br />completed by the owner. Please let me know if you have any questions regarding this matter. <br />Very truly yours, <br />W�NTHI�OP & WEINSTINE, P.A. <br />��� <br />No:rrrian L. Jones III <br />-, � <br />
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