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MINUTES <br />CITY COUNCIL <br />FEBRUARY 26~ 1997 <br />Echtenkamp reported that Housing Alternatives <br />Development Company would be the owner of the complex, <br />and indicated that HADC has plans to address the <br />problems. Echtenkamp pointed out there are a lot of <br />children in the complex. One solution may be to hire a <br />staff person to work with families and plan activities <br />for children. <br />Scalze asked if there were intentions of displacing any <br />of the families residing at the complex. <br />Echtenkamp replied that there were not, other than the <br />9 families which exceed income levels. These families <br />have short-term leases since they are either in the <br />process of buying or building homes. These leases <br />would not be renewed. <br />The City Administrator asked if 1000 of tenants had to <br />meet the income guidelines. <br />Mark Ippel, Briggs and Morgan, reported that HUD <br />imposes the additional income constraints. State and <br />Federal laws require a rehab project spend a minimum of <br />$1,000 per unit on renovations and establishes income <br />requirements that either 20% of the population cannot <br />exceed 50% of the median income, or 400 of the <br />population cannot exceed 600 of the median income. The <br />HUD requirements are that 100% of the population cannot <br />exceed 80% of the median income. Ippel stated that <br />this was not to say that from a legal standpoint the <br />City needed to have the HUD enhancement attached to the <br />bonds. <br />Pedersen asked what the interest was of a non-profit <br />corporation in spending a great deal of money to become <br />a landlord. <br />Denver Kaufman, HADC, replied that they are a non- <br />profit organization owned by five local people. Their <br />charitable purpose is to provide affordable housing <br />alternatives to the elderly, low and moderate income, <br />and to the handicapped. Kaufman pointed out that <br />Montreal Courts is deteriorating. If left alone, <br />problems at the complex will only worsen. Kaufman <br />pointed out the financing will put $500,000 to <br />$1,000,000 in renovations into the complex. This will <br />be a substantial upgrade for the community. Kaufman <br />reported that HADC would own the project while Goldmark <br />would manage it and contract the renovations. Kaufman <br />outlined Goldmark's experience in property management. <br />11 <br />