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MINUTES <br />CITY COUNCIL <br />FEBRUARY 26~ 1997 <br />complex may help address these problems. <br />Echtenkamp indicated that rents at Montreal Courts are <br />market rate. The complex does not receive applications <br />from prospective tenants who exceed these income levels <br />since these people are homeowners. Echtenkamp <br />estimated that most tenants are in the $25,000 to <br />$35,000 income range. Nine tenants exceed the $46,000 <br />income level, and approximately 100 tenants receive HRA <br />assistance. <br />Morelan asked if there were currently any income <br />requirements for the complex. <br />Echtenkamp replied there were not, that currently the <br />complex is pure market rate. <br />Scalze asked what benefit there was to the City to <br />approve the financinq which results in income <br />limitations at the complex. <br />Echtenkamp replied that even if the financing is <br />approved, he did not see the tenant mix changing. It <br />was pointed out that a good share of the proceeds from <br />the bonds will be put into enhancing the project. <br />Echtenkamp reported that there are a lot of needs at <br />Montreal Courts. Under this financing, HUD will <br />mandate repairs as well as the establishment of a <br />substantial escrow account for future capital <br />improvements. Echtenkamp reported that the result of <br />the City's approval of the financing is that Montreal <br />Courts becomes a better corporate citizen. Without the <br />improvements, the project becomes more tired, and when <br />the property suffers, tenant profiles suffer more. <br />Echtenkamp felt renovations will result in upgraded <br />tenant profiles. <br />LaValle asked why the property could not be acquired <br />and renovated without the HUD financing. <br />Echtenkamp replied that the income would not support <br />the debt. Current rents for a one-bedroom are <br />approximately $530 per month, and $630 per month for a <br />two-bedroom. Echtenkamp suggested that incomes of <br />$40,000 to $45,000 per year were really not low income. <br />LaValle felt the rents at Montreal Courts were low for <br />the area. LaValle felt there were problem tenants at <br />Montreal Courts and suggested renovating the project <br />and increasing rents would address these problems. <br />10 <br />