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No�re�nber ?b_ 20(1S <br />:��I�yor Craig Kfausing <br />Cit}� of Ros�eville <br />kCGO Civic Center D�•i��e <br />Rosevil�e, MN 55113 <br />Attachment D <br />�° <br />��; ��� � <br />�� <br />_.�. � �� �j <br />Nousing Preservation Proj�ct <br />A I'uE�[ic Intcrest La�v f irrn <br />Re: Centennial Corrunons — non-coi�lpliai�ce �iith ��Iinn. Stai. S�74A.0�7 <br />I�ear �EVtayo� It,ausin�: <br />Qn October 24, �ve �vrote you dcmonstratin� that the o�vners of Ce��te�ulial <br />C�m��1o�1s ��-ere nat in complia�lce ti�rith Minn, S�tat. 5 47�1A_047 Subd. I(a)(2). The <br />st�tLEte reqt�ires t�tat 2�0% of tP�e uilits i�1 proje-cts f nal�Ced ��it.h ta�: exen�,pt bond.s be <br />rei�ted aC i10 n�ore tllan tl.le a�ca Fair 1�farke€ ]Zents, Faar ��Tarket Rertts are �ross rents -- <br />contract rents plus ten�nt paid utilities. Tl3e otivn.e�-'s coi���nunication to the City ii�dicased <br />�ttat tl��� ow�le�`s ���e1-e chargin� co�ltrac£ rents equal to the fiscal year 2U08 Tair \�Iar�:et <br />I�efits on tl�ose Linits desig�lated to comply «-ith the stattiite. I'hus, duri��R fisca] ?OO�i, <br />7esidents of these ��nits wei•e being aver-cl7ar•ged b;r El1e a��louilt of tlie utility aliowance <br />($�4 for 1-F3R ���its and S:s9 for 2-13R units). A�1 increase i.r� il�e �air Yfarl:et Re��ts for <br />Ciscai 2Q09 (be�in��i«j Qctobei• I, 2005} ap�eared to reduce the amour�t of t�3e vioiation �o <br />� 1�/G�nit. ��e askec� ttiat ti�e City require the o«ner to reduce t11e rents to t�le le��els <br />pern�ittec� by the statu�e, reir�i�ur�e tenants u�ho h�d ot�cr��aid, atxl �3ay tl�e sta��tary <br />penalty ec���aI #o .a% of tJze bor�d an�our�t. <br />T�e o�vner's attor��eys responded on October 3], 200$ coi�cedrn4 t�lat �1��[Rs arc <br />�ross rents and �ti�ere set too hi��h. 1'hey indicated that t��e owf�er would rec�uce the <br />contrac:t rents on at ieast 20°!o af t��e ur�its to ih� �`M�s less the ut't]it}� all.owances and <br />�ti�ould �•eimb�trse tenailts wllo ]lad overpaid. They araued, ho��-ever; tl�at th�; n�i1- <br />caia��liance ���itl� ti�e stattEte was a�1 iiulocei�t ntistake based on bac� advice from tl�c law <br />tir�1� az�d t��erefore the penalty sl�ould noC be inlposed_ <br />��e ���ere ir�for���e�d laCe Easi week by tenaiit Nfarsha Cressy that thc o���ier, ��ving <br />previously �ive�i her a E�vo month notice tfiat i�e�• t�ua bedroonl i�ent wo��ld be raised to <br />5�=�� on Decemb�r 1, ltad sti[1 not rescinc�ed �hat notice in confonnance ���ith tlie <br />attori�ey's promise that the}� �tro�Eld do so. Ttle rent levul set for December l. is the FMR <br />f��r 2-131Z units for FY 2008, lt is apparentl}� i»te�lded by the o�vner to can�ply �rith tt�e <br />Minn�sota statute. B�it, as we pointed ouE i:n olir lettei', and as the owner's attor��ev <br />�onceded, it does not. 1-��e F`Y 2009 F��R is �87� for a 2-BR units; the utility allo�v-ance <br />cited b}� the o«rner is $39; sa tl�e contract re�1t for a 2-RR u�i'rt irlrend.ed to meet tlle 20% <br />reqzii�'cm�nr may i7ot exeeed ��834, It is quite c�isturbiE�g that as ��ecently as last ��re�k th� <br />o��ner ivas de�nanding rents in exce,s of the statutoi-�r Iin�it, ]aaviilg promised n�oi� thai� a <br />rnonlf� aga thro���h tl�eii' ai7o�-ne��s nol to do sa. <br />�70 Asbury Sh-eet, Suite lfl�. SE. Y�u[, 111N 55104 � YeL• �51.�=�2;0]0.�, e fa�: 6�1.6�2.0051 <br />Dedicaied io e.��cmclir�g a�rd presel�vr�7g the supply of cffordahle hnusrrrg r�r 111i�u�esora at7d �ratianride <br />