DATE: April 17, 2017
TO: Members of the Housing & Redevelopment Authority
FROM: Janine Atchison, Housing Coordinator
Title
Quarterly Rental Income & Expense Report
Body
SUMMARY:
Income and Expense Report for Housing & Redevelopment Authority (HRA) rental properties.
BACKGROUND:
First quarter report for the 4 rental properties owned and operated by the HRA in the City of Northfield.
517 Washington St S - New lease for upper unit with Community Action Center (CAC). Lower unit will also be leased to the CAC after the current tenant vacates is July and normal turnover maintenance is completed.
2007 Hidden Valley Road - Currently leased to Ruth’s House of Hope for Women in Transition Program.
2330 & 2334 Elianna Drive - Both 4 bedroom units have been leased to the same families for multiple years.
Rental income will not meet budget projections for 2017 due to the vacancy of the upper unit at 517 Washington St S. However, the unit is now leased to the Community Action Agency (CAC). The lower unit will also be leased to the CAC, when normal turnover maintenance is completed, after the current tenant vacates in July.
ANALYSIS:
Rental income will not meet budget projections for 2017 due to the following:
• Vacancy of the upper unit at 517 Washington St S
• Lower rents charged to the CAC for their Emergency Transition Housing Program.
• Possible lower rents for Ruth House of Hope, conforming to new Fair Market Rent limits.
Staff met with a representative of the County Tax Assessor’s office to inspect the 517 Washington St S for accuracy of the proposed 2018 valuations. The assessor’s office is reviewing the proposed valuations which may result in lower property taxes for the two properties.