B
irmingham City Hall is facing a nearly $500,000 repair bill due to a computer problem that has hindered real estate sales for about five months. Mayor Randall Woodfin will ask the city council to allocate $468,000 to fix mainframe issues and resolve the issue.

    The problem has caused delays in cash payments and slowed down real estate sales as city officials struggle to confirm routine records requests needed to complete private sales. Real estate lawyers require a letter from the city to prove that there are no liens or fees due on properties being sold, but the city's inability to provide this information has led to escrow money being withheld.

    Council President Darryl O'Quinn expressed frustration with the situation, describing it as a "revolving door of funding" for software issues. He noted that the council recently approved spending to address another software issue, but was not aware of the problems affecting real estate sales.

    Lawyers are withholding around $1,000 in profit for residential sales, and more could be held up for larger transactions. A Birmingham closing attorney has 200 files where he is forced to hold money from sellers as they await clearance from the city.

    The problem is unrelated to a computer hack earlier this year that crippled systems and forced offices to use paper files. However, the problems occurred around the same time, and O'Quinn said that issues related to the hack have been resolved. The city is now working to determine the extent of the damage caused by the network attack.

    The city's insurance policy covers up to $10 million, and O'Quinn believes it will be easy for them to file a claim to recoup some of the lost revenue and expenses resulting from the situation.