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MINUTES <br />CITY COUNCIL <br />APRIL 2, 1997 <br />Brachman reported that as part of the tax-exempt financing, Dominium <br />was legally required to designate at least 40% of the units at The <br />Provinces for tenants whose incomes are at or below 60% of the median <br />income. Most of the tenants at The Provinces meet these low to moderate <br />income guidelines. Brachman reported that 60% of inedian income is <br />$34,380 for a family of four and just under $31,000 for a family of three. <br />Brachman pointed out that these income levels are not really low income <br />and tax credits are not the same as Section 8 housin~. <br />Brachman reported that Dominium has been increasing rents at The <br />Provinces, indicating that renovations at the apartment complex support <br />the rentincrease. <br />Brac6man informed the Council that when Dominium took over The <br />Provinces, they realized most of the tenlnts would meet the 60% of <br />median income guidelines. Brachmin pointed out that based on this <br />realization, it was Yheir feeling t6e more tax credits which could be <br />generated, the more money they would have to put back into the project. <br />Brachman reported that Dominium has been doing three major rehabs in <br />the Twin Cities this pasY year. Dominium's management staff took a letter <br />it sent out on another project, ai~d sent it to the residents of The Provinces. <br />This letter gave tenants 60 days to vacate the complex if they did not meet <br />low to moderate income guidelines. This letter should not have been sent, <br />as it was never pominium's intention to displace anyone at The Provinces. <br />Anotl~er letter was sent; however, that letter was confusing to tenants. <br />Brachman reported that finaily the appropriate letter was sent which <br />indicated if a tenant met low to moderate income ~;uidelines, they should <br />come in and complete some paperwork. Dominium offered tenants $ t00 <br />to do so. <br />Brachmaii stated that he understlnds the concern is that Dominium is <br />trying ro reposition to the product. Brachman indicated this is ~iot so and <br />pointed out they are increasing rents. In order to alleviate this concern, <br />Bracl~man indicated that papers can be drawn which state Dominium will <br />not turn away people who have incomes exceeding low to moderate <br />guidelines. However, the fact of the matter is 85% of the prospective <br />tenants comin~ in the door do meet those income guildelines. <br />Brachman repo~ted that Dominium thought The Provinces could be <br />designated as 100% affordable housing with no noticeable difference to <br />the community. However, they now realize the City will not support a <br />designation at the 100% level. Brachman stated that Dominium would <br />like the City to 3ive them the ability to 0o to the 85% leveL In exchange, <br />additional dollars will be generated to allow the two buildin~s to be <br />