City committee advances voluntary relocation plan for Heritage Park after emergency funding

Chair Oreen Chowdhury convened the discussion of a proposed voluntary relocation policy for Heritage Park on Aug. 10, moving the item forward to the full council after a committee vote.

Eric Hansen, director of Community Planning and Economic Development, told the committee Heritage Park is a 440‑unit mixed‑income rental community with 211 occupied units and an estimated 680 residents. He said the city previously approved a $2.5 million appropriation for emergency repairs and relocation assistance and that CPED’s proposed policy would provide two financial supports to eligible residents: a 12‑month rent differential benefit (intended to cover the difference between current and replacement-unit rents, subject to HUD 60% AMI and a 30% affordability threshold) and a moving stipend. Hansen described the illustrative support range as approximately $6,500 to $12,500 per household and said the moving stipend would tier by bedroom size (staff presentation listed the stipend range as $3,500 for a one‑bedroom to $7,500 for a five‑bedroom unit).

Hansen said Heritage Park remains in court‑ordered receivership with CERTIS Financial as the receiver, that McCormick Baron Salazar (MBS) built the property, and that MPHA holds long‑term ground leases on some phases. He said of 211 occupied units, 128 are MPHA units (ineligible for this city policy) and 83 non‑MPHA households would be eligible. Under the policy, a household must have been legally occupying a Heritage Park unit on 2026‑07‑18, report health or safety concerns to the city by 2026‑10‑15, and relocate outside Heritage Park by 2027‑01‑31; the CPED director may grant a six‑month extension for hardship.

Council Member Warren, echoing residents’ reports, described severe building problems at Heritage Park (mold, failing windows, compromised envelopes) and criticized MPHA and the property manager for misleading residents about habitability. He urged the city to prioritize residents’ safety. Hansen acknowledged damage assessments are ongoing, said staff believe the buildings may be savable but cannot yet make a definitive determination, and emphasized the policy’s role in creating a clear, voluntary option for households that need or want to relocate now.

Several council members asked for more oversight materials before the full‑council vote: they requested a fiscal note tied to the earlier appropriation, a race‑equity analysis, the SRF consultant fee schedule (staff said SRF negotiation remains in progress and that the consultant fee is expected to be in the hundreds of thousands), and clearer communications plans explaining differences between MPHA transfer assistance and the city’s voluntary program. Hansen said staff would provide additional information and would manage contracts to require cultural competency and measurable deliverables.

The committee voted to move the policy forward. Chair Chowdhury and staff said the policy is time‑limited and tailored specifically to Heritage Park; staff also said CPED will continue working with MPHA and the receiver on longer‑term rehabilitation options and financing.