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The statu£e i'equires CEie issuer (here; t��e Citj� of Rose��ille) Ec� 7ilonitor coz��pliance. <br />IVlinn. Stat. � 47�4A.D47 Subd. 3. We a�7�a-eciate the City's recerzt re�uest tl�at th� ot���7er <br />cloctiment co�npliance wit�h tf�e �tat�te. ��e request t�1at the City int�nedia�tely assu�-e #l�t�t <br />ar��I impro��er z'ea7t inci�eas�s scheduled for Decembet- 1��ave bee��. canceled. <br />.As to tlle statiitory }�e��alty, we .voulct point out that the assertion that. the viotation <br />«-as basec� on a i�ltsinterpretation of tlie ]atv is h�ghly suspect. The rent lit��4ts i�1 the tax <br />ca'ec3it pro��ratn, with ��f�iich the ou�ner and its aCtorney are c�uite familiar are gross rent <br />limit�; so o��-iier and att��i-��ey �vere far�iiliar �vitF� tk�� concept as is iridicafed brr tE1e fact <br />that tl�e ativner i��cl�aded LitilitY allowa��ces i� iEs submissions to the R�IHFA. "I�hat FMRs <br />are like�i�ise gross rertts is� a concep�t fan�si�iar io an�� etperie��ce�I housirag pi'afessionaI — <br />and tE�e o«ri7ers are experienced pl�ofessionals. That the o«�nez�s t�nc�erstood the rlleaning <br />of�ti�e statuEe is furt�ier indicated by tf�e fact that ilie o�rner's initial s�bmission to the <br />yi�'I�A set con.tr�ct rents tor ?f�% of the urlits a€ levels iiitended to t�e belc,�«r the FR�IRs <br />�uhen uEili�- allo�v�lces �vere acided. For instance, tE�e 2007 1-Br F1VI�t ���as $707 a�lcl. tl�e <br />ulilily allo���ancc ���as �3U, �ennittin� a contract r�nt of �io more ti.�an �677. The s�ai�dard <br />rent slioi�-ii �or 1-Brs �vas $72� but 19 units were set at ,�',67� — clearly recogn.izii-�� tl�e <br />��eed Ca deduct tni] icy costs fro�11. tlie F��R [o arri�re at a cot�tract rent �t=ithin tite statuto�-y <br />]in�it for uzlits iniendec� tci sdtisf}� the 20% rec�urrei�letit. <br />Tl�is �vas a st►bstantial violati�n of the sta.tute; one wf�iclS appears to have <br />coa�t�ntied ]ong after the o�vner's attomey proitzised thaz it �voutd. stap, In such cascs, the <br />penalt�y is m�daEory: <br />Yotirs tr�iI}�, <br />� � <br />.Iack Cann <br />cc: Cotinciln�e«�be�� Il�lan <br />5tate Senator ��larty <br />Bot� Oc�ii�an, R�IHFA <br />I`'ot-�nan L .Tones, a���ners' attarney <br />