DATE: September 14, 2017
TO: Members of the Housing & Redevelopment Authority
FROM: Janine Atchison, Housing Coordinator
Title
North Oaks/South Oaks Relocation Expenses
Body
SUMMARY AND ACTION REQUESTED:
Request for Housing & Redevelopment Authority (HRA) to pay additional $654.31 relocation attorney fees for North Oaks/South Oaks acquisition project.
BACKGROUND:
The acquisition of the North/South Oaks Apartment Complex by the Three Rivers Community Action Agency (Three Rivers) in 2016 caused two of the existing tenants to be displaced because their incomes were above the tax credit income requirements established by Rural Development (RD) and Minnesota Housing Finance Agency (MHFA).
Three Rivers absorbed the actual relocation costs for the displaced tenants and at the September 21, 2016 HRA meeting, requested assistance from the HRA to pay the administrative relocation attorney fees to Jon Morphew Law Office. The fees were estimated to be between $5000 and $6000.
The HRA agreed to pay relocation attorney fees up to $6,000.00 on September 21, 2016.
The final bill for relocation attorney fees was actually $6,654.31. Three Rivers is requesting the HRA pay the additional $654.31 for the relocation attorney fees.
ANALYSIS:
Three Rivers has received a full accounting of the bill and feel that the overage is justified. Although there were a few complications, the relocation was well handled and completed in a timely manner by Jon Morphew Law Office.
RECOMMENDATION:
Staff recommends the HRA board consider paying the additional $654.31 for relocation attorney fees, which were a result of the acquisition of North Oaks/South Oaks Apartments.