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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