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MINUTES <br />CITY COUNCIL <br />APRIL 2,1997 <br />Ippel asked if Dominium can provide the City Council with information <br />on the income levels of the current tenants as well as income levels of the <br />tenants at the time application was made for tax-exempt financing. <br />Brachman replied that this information can be provided. <br />Scalze asked what Dominium intended to do with leases. <br />Brachman replied that they would like longer term leases, and also pointed <br />out their intention to push up rent. Brachman stated that Dominium is a <br />for-profit corporation, and it is in their best interest to raise rents. <br />Ippel asked the vacancy rate at The Provinces. Brachman replied that it <br />has been in the 3% to 4% rai~ge. <br />Pahey asked what the scale was for tax credits starting at the 40% level <br />and working up to 80%. T'he City Administrator stated calculations <br />indicate $56,898 in tax credits at the 40% level up to $142,245 at the <br />100% level. His calculations estimated an additional $14,224 in tax <br />credits for each 10% increase. <br />Brachman reported that if the City chooses not to go beyond 40% <br />affordable housing, it will make no difference in the type of tenants at The <br />Provinces since 75% to 80% of the prospective tenants already are at or <br />below the median income guidelines. <br />Fahey pointed out that this figure has increased from the 60% to 70% who <br />met income guidelines at the time tax-exempt financing was first applied <br />for. <br />Scalze asked what has happened since February of 1996. <br />Brachman reported that Dominium never did a survey of tenant income <br />levels at the time they applied for tax-exempt financing. <br />The City Administrator as]<ed how Dominium would verify tenant income <br />in order to qualify f'or tax credits. <br />Brachman replied that agency forms would need to be completed, and <br />income and employment verificatioi~ forms would be required on an <br />annual basis. <br />Ippel pointed out that before the tax-exempt bonds there was no <br />requirement of the property owner to verify incomes. Ippel indicated that <br />many tenants in facilities such ~s The Provinces qualify for a first-Yime <br />