DATE: August 27, 2019
TO: Members of the Housing & Redevelopment Authority
FROM: Janine Atchison, Housing Coordinator
Title
2nd Quarter Income/Expense Report - Rental Properties
Body
SUMMARY AND ACTION REQUESTED:
The Housing & Redevelopment Authority (HRA) to review 2nd quarter income and expense report for
HRA owned rental properties.
BACKGROUND:
The HRA owns and operate 4 rental properties containing 5 rental units. The rental units include a duplex on Washington St S, 2 townhome units on Elianna Drive and one unit of a twin home on Hidden Valley Road. Each quarter an income and expense report is provided to HRA Board Members to review.
In 2017 staff met with a representative of the Rice County Assessor's Office to discuss the property taxes at the Washington St property. The assessor's office did an evaluation of the property and determined the valuation was too high. As a result the evaluation was lowered and property taxes reduced by almost $1,000 per year.
Staff, once again, met with another representative from the Rice County Assessor's Office in August to again discuss the property tax status on all HRA owned properties. Although the Elianna properties do not meet the property tax status currently applied to the Hidden Valley property, the Washington Street property is being considered for the same tax status. The Rice County Assessor will make a determination if the Washington property meets the same property tax criteria as the Hidden Valley property. If this determination is made the HRA could save up to $4,000 per year on property taxes for the Washington St property.
ANALYSIS:
Second quarter income, for all HRA owned rental property, is right on track with the 2019 budget. Expenses for the 2nd quarter are slightly above average due to high number of snow removal events in the Spring and repair costs of one of the Elianna units.
The Hidden Valley property is owned by a government entity and leased, under a government sanction...
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