10-09-79 agenda
HOUSING AND REDEVELOPr~1ENT AUTHORITY
Office of Executive Director
HRA Letter No. 39
Agenda October 9, 1979
Housing and Redevelopment
Authority Commissioners
City of Richf field
Commissioners:
Subject: Hearing on 1980 Proposed HRA Budget and 1979
Revised HRA Budget
The HRA has scheduled a public hearing on the 1979 revised and
1980 proposed HRA budget for October 9, 1979. HRA Commissioners
have previously received copies of this budget, and extra copies
will be available for members of the public wl~d attend this hearing.
At the close of the hearing, it is recommended that the HRA
adopt the resolutions contained in the back of the HRA budget docu-
ment, certifying the tax levy and establishing the appropriations
as necessary to support the HRA budget during the remainder of the
1979 and during 1980.
Respectfully submitted,
~=~,~-
Karl Nollenberger
Executive Director
KN/jf
cc: Housing and Redevelopment Specialist
Acting Finance Director
r HRA RESOLUTION N0. 126
RESOLUTION APPROVING 1980 HOUSING AND REDEVELOPMENT AUTHORITY
BUDGET AND CERTIFYING THE TAX LEVY
BE IT RESOLVED by the Housing and Redevelopment Authority of the
City of Richfield as follows:
Section 1. The budget for the Housing and Redevelopment Authority of
Richfield for the year 1980 in the amount of $53,698 is hereby ratified,
approved and adopted.
Section 2. The estimated gross revenue of the Housing and Redevelopment
ti
Authority of Richfield from all sources, including general ad valorem tax
levies as hereinafter set forth for the year 1980, and as the same are
- more fully detailed in the City Manager's official copy of the Proposed
Budget for the year 1980, in the amount of $53,698 , are hereby approved
and adopted.
Section 3. There is hereby levied upon all taxable property in the City
of Richfield a direct ad valorem tax in the year 1979, payable in 1980
for the following purposes:
PURPOSE AMOUNT
Housing and Redevelopment Authority 1/3 Mill
Relocation Information, Services and
Assistance 1/30 Mi11
Section 4. A certified copy of this resolution shall be transmitted to
th.e County Auditor.
Passed by the Housing and Redevelopment Authority of the City of
Richfield this 9th day of October, 1979.
Loren L. Law Chairman
ATTEST:
V. L. Luettinger Secretary
HRA RESOLUTION N0. 127
RESOLUTION AUTHORIZING REVISION OF 1979 BUDGET
OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF
RICHFIELD
WHEREAS, Resolution No. 102 appropriated funds for personal services,
other expenses and capital outlay for the Authority for the
year 1979; and
WHEREAS, The Executive Director has requested a revision of the 1979
Budget as detailed in the proposed 1980 budget document.
t
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority
of Richfield as follows:
Section 1. That the 1979 appropriations be revised as follows:
S15 337 Decrease
Section 2. Estimated 1979 gross revenue of the Authority from all sources,
as the same are more fully detailed in the Executive Director's
official copy of the 1980 budget document, are hereby revised
as follows:
S 1,505 Increase
Section 3. That the Executive'Director bring into effect the provisions
of this resolution.
Passed by the Housing and Redevelopment Authority of Richfield, this
9th day of October, 1979.
Loren L. Law Chairman
ATTEST:
V. L. Luettinger Secretary
HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 38
Agenda October 9, 1979
Housing and Redevelopment
Authority Commissioners
City of Ricrif field
Cornmiss Toners
Subject: Authorization to Make Payment Under the Last Resort
Housing Program
On December 26, 1978, the HRA authorized the purchase of 7104
Second Avenue South under the New Home Program. The owner-occupant
of that property was Ms. Elizabeth Kruger. The house at 7104 Second
Avenue was condemned by the Environmental Health Department as un-
fit for human habitation. Because no permanent replacement housing
was available for Ms. Kruger at that time the _H RA arranged for Ms.
Kruger to rent a city-owned house at 6445 21st Avenue South.
Since Ms. Kruger was the owner-occupant of property purchased
by the HRA, she is entitled to receive relocation benefits according
to the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970. Under the Uniform Act, her rental of 6445
21st Avenue is regarded as temporary housing; temporary housing can
be utilized for one year. Within one year, the HRA must provide her
with a permanent replacement dwelling on a purchase basis. Ms. Kruger
cannot be required to lave 6445 21st Avenue until the HRA has met its
relocation obligation.
The HRA's responsibility is to help Ms. Kruger to find a dwell-
ing to purchase which is decent, safe and sanitary, affordable and
in a location she desires. We must pay her moving costs and a replace-
ment housing payment up to $15,000. On December 26, the HRA also
authorized this replacement housing payment of up to $15,000.
Ms. Kruger needs a three bedroom house. In the metropolitan area
three bedroom houses range in price from $45,000 to $55,000. Dozens
of houses have been examined, but Ms. Kruger cannot afford a home in
this price range, since her monthly income is $389.00.
Decent, safe and sanitary houses are slightly less expensive in
out-state locations. Ms. Kruger wants to relocate to Owatonna, rlin-
nesota, and. has found a vacant, decent, safe and sanitary dwelling
for sale in Owatonna in the amount of $41,200. Ms. Kruger has signed
a purchase agreement for this property, pending action by the HRA.
However, a $15,000 replacement housing payment would not be sufficient
to make the home affordable to her, since the contract-for-deed bal-
ance would be $26,200.
r
•3RA L+etter No. 38 -2- October 9, 1979
Under the relocation regulations, the replacement housing must
be affordable. The affordability of this property for Ms. Kruger
would be increased by making a payment under the Last Resort Housing
Program. This payment must be approved by both the HRA and the local
office of the Department of Housing and Urban Development. Sufficient
funds to make this payment are available in the new home/scattered
site program. If the HRA were to make a payment under this program
in the amount of $5,500, this payment, together with the $15,000 re-
placement housing payment, would result in a contract-for-deed of
$20,000. Once employetlin Owatonna, Ms. Kruger's income should be
sufficient to support monthly payments on a contract-for-deed of that
amount.
It is recommended that the HRA authorize $6,500 to Ms. Elizabeth
Kruger as a Last Resort Housing payment and that that approval of HUD
for this payment be sought.
Respec6t~ fully submitted,
Karl Nollenberger
Executive Director
KN/jf
cc: Housing and Redevelopment Specialist