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III.3.Rental Register Write Off for FYE 03-31-2025 CITY OF HOPKINS HRA Report 2025-04 To: Honorable Chair and HRA Members Mike Mornson, City Manager From: Muse Mohamed, Public Housing Manager Date: March 4, 2025 Subject: Rental Register Write Off for FYE 03/31/2025 _____________________________________________________________________ RECOMMENDED ACTION MOTION TO adopt Resolution 559, authorizing the HRA Staff to write off bad debts as uncollectible OVERVIEW The HRA currently has 18 tenant accounts with uncollectible balances who vacated Dow Towers between 2020 – 2024 due to relocation, passing away or transitioning to assisted living. To clear the books for fiscal year ending 03/31/2025, the HRA Board must approve a resolution clearing this amount from the books. PRIMARY ISSUE TO CONSIDER •What is the total dollar amount to be written off? o A total of $8444.19 will be written off across 18 tenant accounts •Can the HRA still attempt to collect the debt from the former tenants? o The HRA will file a claims against former tenants with outstanding debts exceeding $25.00 through Minnesota Revenue Recapture Act. This legislation enables housing authorities to recover debts by intercepting state income and property tax refunds. The program, administered by the State of Minnesota, has been highly effective in returning funds to the HRA SUPPORTING INFORMATION •HRA Resolution 559 Alternatives. The HRA has the following alternatives regarding this issue: 1.Approve the action as recommend by staff 2.Continue for further information Housing & Redevelopment Authority CITY OF HOPKINS HOUSING AND REDEVELOPMENT AUTHORITY HENNEPIN COUNTY, MINNESOTA RESOLUTION 559 RESOLUTION AUTHORIZING THE WRITE OFF OF UNCOLLECTIBLE DEBT FROM PAST PUBLIC HOUSING RESIDENTS WHEREAS, The Housing and Redevelopment Authority In and For the City of Hopkins, Minnesota, (the “Authority”) desires to clear the books by writing off several tenant account as uncollectible; and WHEREAS, The Authority, will file a claim with the State of Minnesota Revenue Department of Revenue for all debts exceeding $25.00; and NOW THEREFORE BE IT RESOLVED, that the Authority Board of Commissioners hereby authorizes the write off uncollectible debt from tenant account(s) 100.00, 101.40, 103.10, 203.10, 204.20, 211.10, 302.00, 403.10 406.40, 409.10, 410.70, 503.60, 509.40, 605.10, 705.10, 706.70, 706.70, and 711.10 equaling $8444.19 Adopted by the HRA Commissioners this 4th day of March, 2025. By:____________________________ Patrick Hanlon, Board Chair ATTEST: _______________________________ Muse Mohamed, Executive Director