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Item No. 12 <br /> Staff Report No. 97-2176WS <br /> • Meeting Date 8-4-97 <br /> Type of Business WK <br /> WK: Work Session;PH:Public Hearing; <br /> CA:Consent Agenda;CB:Council Business <br /> Mounds View City Council <br /> Work Session Staff Report <br /> To: Mounds View City Council <br /> From: Cathy Bennett, Director of Economic Development <br /> Item Title/Subject: Discussion of Estimated Costs to Purchase Single Family Rental Homes <br /> under the Housing Replacement Program <br /> Date of Report: August I, 1997 <br /> At the July work session staff was directed to research the potential costs of acquiring homes that are <br /> being rented under the Housing Replacement Program. Currently the program does not provide for <br /> the purchase of homes that are being rented because of the cost associated with relocation. It is <br /> possible to make a minor revision to the program that would allow the EDA to consider the purchase <br /> of tenant occupied homes.. <br /> 1111 In discussions with a relocation consultant it was estimated that relocation costs associated with single <br /> family homes is high because it is difficult to find comparable rental property due to the limited amount <br /> of single family rental units. The EDA would be responsible to provide assistance based on the <br /> difference of the current rent and the new rent of a comparable home or 30% of the tenants income <br /> whichever is greater. The EDA would also be responsible for moving expenses and utility hook up <br /> charges. Based on this information it can be estimated that is could cost a maximum of$30,000 per <br /> household for relocation. <br /> With this in mind,Jennifer Bergman prepared an estimate of what it could cost to purchase the homes <br /> along Long Lake Road/Ardan Ave. (See attached memo). If the City was interested in pursuing the <br /> purchase of these homes based on this cost estimations my recommendation would be to discuss a <br /> partnership with the owner. If the owners are interested in selling at some point in the future, we <br /> could request that they not renew the leases and then have them make a proposal to the City for <br /> purchase of the homes. With this approach the City is not directly responsible for relocation costs but <br /> there is still a risk of incurring these costs. Therefore, if you wish to proceed it would be with the <br /> understanding that we may need to invest an additional $30,000 in the cost of the house. <br /> Staff if looking for direction regarding how to proceed on this matter. <br /> • <br />