City-funded tenant relocation program review: cost study finds $6,000 cap likely insufficient for mobile homes

Susan Watkins, division manager in the Austin Housing Department, briefed the Housing and Planning Committee on Sept. 16 about the tenant notification and relocation ordinance and a completed relocation cost study by Eco Northwest.

Watkins said the tenant notification and relocation ordinance—first adopted in 2016 and revised in subsequent years—requires notice when demolition or major renovation is proposed for multifamily properties of five or more units and for certain mobile home site changes. The ordinance and program rules (first codified in 2017) include mechanisms for city-funded relocation assistance; state law changes eliminated developer‑fee options, so Austin currently operates a city-funded relocation program.

Eco Northwest summarized the cost study results. Jada Gilad and Amanda (Eco Northwest) told the committee their analysis examined local rental market conditions, past demolition trends, and the practical costs tenants face when required to relocate. Eco Northwest estimated per‑household relocation costs (total assistance needs vary by unit size and by whether the household is in a mobile home): for small units (studio/one-bedroom) the study estimated a low of about $3,100 and a high of about $6,300 per household; for mobile home households the study estimated a low of about $9,000 and a high of $15,000 per household when including moving, storage and temporary lodging where needed.

Current program parameters and operations described to the committee: the city-funded Tenant Relocation Program (funded in FY23 and administered under contract by Lavier Logix) is available to households at or below 70% of Area Median Income (AMI) for multifamily residents and 80% AMI for mobile home residents. Services in the program include housing locator assistance (up to 50 miles), moving and storage assistance, rental payment assistance, and other case management services. The program currently has a $6,000 per‑household cap.

Watkins and the Eco Northwest presenters recommended several actions for the city to consider: adjusting compensation awards by household size and housing type (noting the $6,000 cap is unlikely to meet mobile‑home relocation costs), continuing to use a 50‑mile assistance radius while tracking whether applicants lose eligibility because they find housing outside the radius, and extending notification timelines to give tenants more time to locate replacement housing (current ordinance timelines cited in the briefing are 120 days for multifamily and 270 days for mobile homes).

Committee members asked about program funding and usage. Watkins said the council previously allocated about $700,000 (with later additions) to the program and that the vendor, under the city contract, has developed intake and application rules. Watkins and a program manager present said they would return with detailed fiscal usage figures by fiscal year; they reported the fund had not yet been fully expended and that much of the assistance to date had been provided on a case‑by‑case referral basis.

No formal action was taken Wednesday; staff asked to return with updated budget and usage figures and to continue tracking outcomes, including how often applicants find housing outside the 50‑mile radius.