DATE: March 21, 2019
TO: Members of the Housing & Redevelopment Authority
FROM: Janine Atchison, Housing Coordinator
Title
2019 Rental Rates for HRA Properties
Body
SUMMARY AND ACTION REQUESTED:
The Housing & Redevelopment Authority (HRA) to determine 2019 rental rates for HRA owned properties.
BACKGROUND:
The HRA owns 4 rental properties, containing 5 rental units, as part of their effort to provide affordable housing in Northfield.
Washington Street - Two 2-bedroom units
Rice County Fair Market Rent (FMR) - $882.00
The HRA previously agreed to keep the rents at current levels through 2019. The HRA provides gas, electric, water (includes sewer & trash collection). The HRA also provides mowing and snow removal.
Elianna Drive - Two 4-bedroom units
Rice County Fair Market Rents (FMR - $1,256.00)
The HRA acquired both units in 2010. The HRA currently leases each 4-bedroom unit to low income families at $945.00 per month. The HRA provides mowing and snow removal through their association dues. The tenants pay their own gas, electric and water (includes sewer & trash removal).
Hidden Valley - One 3-bedroom unit
Rice County Fair Market Rent (FMR) - $1,139.00
The HRA currently rents the property to a non-profit organization for a Women in Transition Program. The rent is $1,139.00 per month. The HRA provides gas, electric, water (includes sewer & trash collection). The HRA also provides mowing and snow removal.
ANALYSIS:
Washington Street
The HRA previously agreed to keep the rental rates at current levels through 2019, for the Washington Street property. This would allow the HRA to review a full year of increased costs of electricity generated by the installation of central a/c in each unit in August 2018.
Elianna Street
The FMR for each unit includes utilities. The utility allowance is between $300 and $328 per month. Calculating rents and utility, the current rent is in line with the FMR standard.
The two Elianna properties have longer-...
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