2009_0309_Packet - Laserfiche WebLink

Home

Attachment E WINTHROP WEINSTINE ATTOKNEYS AND COIINSELORS AT LAFV February 26, 2009 Mayor Craig Klausing City of Roseville 2660 Civic Center Drive Roseville, MN 55113 RE: Update on Centennial Gardens project FMR Compliance Dear Mayor Klausing: Norman L. Jones III Direct DiaL• (612) 604-6605 njones@winthrop.com We �iave been asked to provide an update to our letter of October 31, 2008 reporting on the historical compliance of the Centennial Gardens project with the requirements of Minnesota Statutes Section 474A.047. Vt�e have been asked to (i) consider the effect of certain Section 8 voucher payments, (ii) reflect some corrected data reported by the owner's outside consuitant when looking at actual rent payments received, and (iii) report on the corrective measures taken. As you know, the first part of Minnesota Statutes 474A.047, Subd. 1(a)(2) provides as follows: "(2) the m�imum rent for at least 20 percent of the units in the proposed residential rental project do not exceed the area fair market rent or exception fair market rents far existing hausing, if applicable, as established by the federal Department of Housing and Urban Development. . . ." The term "rent" is defined in Minnesota Statutes 474A.42 Subd. 23b as: "the total monthly cost of occupancy �ayable directl�y the tenant and the cost of any utilities, other than telephone. It does not include a charge for a service that is not required as a condition of occupancy." (emphasis added) We conclude that only amounts payable directly by the tenant can be considered "rent" under this provision. We have been informed that a number of Section 8 vouchers are being utilized at the project. Section 8 vouchers work by requiring the tenant to pay a certain amount directly to the owner (which amount has been determined by HUD to be affordable to that tenant), and HUD also pays an amount to the owner. In these cases, the amount to be treated as "rent" under the above definition is the amount payable by the tenant. Suite3500 � 225SouthSixthStreet ( Minneapolis,MN55402-4629 � MAix:(612)604-6400 � Fnx:(612)604-6800 � www.winthrop.com � A Professionol Association _