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Resident raises questions about compliance at East Bethel Village apartments tied to 2020 TIF agreement
Summary
A resident told the council that developer documents and a 2023 compliance report show zero affordable units despite a 2020 developer agreement requiring 20% of units be occupied by households at or below 50% AMI; the resident asked the council and owner for remedies and refunds.
A resident and frequent public commenter told the City Council Jan. 13 that East Bethel Village Apartments are not meeting conditions tied to a 2020 developer agreement and tax‑increment financing (TIF) authorization.
Dean Ealing said he obtained the developer's agreement and an annual compliance report through a public‑records request and said the agreement requires "at least 20% of the residential units in the project must be occupied or available for occupancy by persons whose incomes do not exceed 50% of the county median income." Ealing said he found no units occupied by households that meet that threshold and that the property manager certified two designated low‑income units were occupied by the management agent's own employees.
Ealing said the management agent listed the property manager's annualized gross income at about $40,200 and the assistant manager's at $48,400, which he said strains the credibility of their eligibility for designated low‑income units. He said Ehlers Public Finance Advisors had advised the city on July 13, 2020 that 20% of units would be "made affordable" but that the developer's agreement does not use the same language and instead sets an occupancy requirement. He quoted an Ehlers email from Feb. 14, 2024 that stated the developer is not required to offer units at an affordable rate, only to have 20% of units occupied by persons at or below 50% AMI.
Ealing asked the council and the owner of East Bethel Village Apartments several questions, including whether the owner will comply "with the original intent of the City of East Bethel and make 20% of your apartment units in both buildings affordable, not just available, to low income families" beginning Feb. 1, 2025, and whether the owner will refund excess rent collected plus interest. Ealing estimated excess rent collected for building 2 in 2022 at $86,688 based on the compliance report and rent‑data sources. The council acknowledged the comment and offered to review the materials; no council action on the issue was recorded during the meeting.
