02-14-1996 Council Agenda - Laserfiche WebLink

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OC 00 1000 SOaAO MO 330 COO' OCOTdrLANAOAN PP.00 Engineering Report The Managing Agent retained HRD Engineering, Inc. to conduct a visual walk - through of the site and building areas and provide a written report of their findings the ( "Engineering Report"). The object of the report was to identify any significant deficiency problems or items of deferred maintenance at the Project site. The Engineering Report, dated June 30, 1995, indicated that the overall condition of the Project appears to be average. The Engineering Report apeclfied only a few items requiring immediate attention: repairs to garage roofs, doors and cracks; repairs to the roof on building 153; and the repair of two balcony screening walla The report also recommended addressing other items, although not structurally necessary, which would be a great improvement to the Project. These items include: replacing all original appliances, including the installation of dishwashers in all units; replacing all unit carpet and kitchen flooring that is older than four years; installing new counter tops, and upgrading the common areas with new carpet, light fixtures, and paint. The Rehabilitation Work to be undertaken by the Partnership will encompass the improvements recommended by the Engineering Report. Copies of the Market Study, the Appraisal, the Environmental Report and the Engineering Report are available from the Underwriter during the initial offering of the Bonds. Management The Partnership will enter into a Management Agreement for the management of the Project with Dominium Management Services, Inc. (the "Managing Agent "). The Managing Agent is related to the General Partners of the Partnership. The Managing Agent has been in existence since 1980. The Managing Agent and other affiliates, currently manage approximately 9,000 apartment units and over 50,000 square feet of commercial space. The Managing Agent and affiliates currently have over 100 full -time and over 299 -part time employees. Under the Management Agreement, the Managing Agent is responsible for the day - to-day maintenance, operation, leasing and financial reporting with respect to the Project. The Managing Agent will additionally be responsible for monitoring compliance with all reporting requirements related to low - income set aside requirements. The Managing Agent has extensive experience managing affordable housing, including Section 8 projects, Section 42 tax credit projects, and projects financed by tax- exempt - bonds. M compensation, the Company will contract to pay the Managing Agent a fee of 5% of gross collected revenues of the Project. The term of the Management Agreement runs through February 28, 1997, and is terminable upon 30 days' notice after that date and is terminable before that date "with cause." Tenant Income Limits and Rent Limits Pursuant to the Regulatory Agreement, not less than 24 of the Project's 118 units (20%) must be occupied by tenants having adjusted annual family incomes of 50% or less of the Minneapolis/St. Paul Statistical Metropolitan Area median income, as adjusted for family size, as reported by the U.S. Department of Housing and Urban Development -15- Page 17