Memorandum

TO:	Diane Stoddard, Interim City Manager
	Lawrence City Commissioners
FROM:	Shannon Oury, Executive Director Lawrence Douglas County Housing Authority
DATE:	December 1, 2015
RE:	Donation of Property at 826 Oak St. to the Lawrence-Douglas County Housing Authority

Narrative

In August the Lawrence-Douglas County Housing Authority (LDCHA) was contacted about the possibility of a one-bedroom house at 826 Oak St. (the "Property"), being donated to the agency. The LDCHA Board authorized the Executive Director to explore the opportunity, conduct due diligence on the Property, and to present the request to the City.

The inspection was performed and identified no major defects, see attached report. Additionally, an Environmental Review was performed by the Development Services Department of the City of Lawrence and shows no issues. See attached Statutory Checklist. The parties are ready to proceed with the donation.

The donating party is aware that the acceptance of the Property is contingent on approval by the City of Lawrence due to the requirement that the Property must be deeded to the City. No HUD approval is required.

The LDCHA will manage the Property with the objective that it be self sustaining and provide a preference for veterans, and that any veteran utilizing a VASH voucher will be eligible for this property. If there is no veteran that elects to rent this property, it will be made available to other non-traditional voucher holders including the HOME program and other LDCHA special voucher holders.  This Property will not receive subsidy from HUD or any other source. It will be managed with a sliding scale rent schedule based on the income of the tenant.

The only immediate cost will be to insure the Property, which is estimated to cost $1,407 annually including flood insurance. Additionally the minor repairs identified on pages 11-12 of Inspection Report will be made by the LDCHA maintenance staff.

Property Management

The LDCHA will manage the Property and will charge only actual cost of administration and maintenance to the Property. The LDCHA has 14 other Scattered Site units in North Lawrence and does not anticipate the cost of maintenance to be in excess of the rent that will be generated.

Request

The LDCHA requests that the City Commission authorize the LDHCA to accept the donation of this Property and permit the Executive Director of the LDCHA to execute all documents required to complete this transaction.