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Do we pick up Halmeldir and go turn in the quest? There, we tell him in detail about the monsters encountered in the sewers and the danger they pose, asking for an increase in the reward. We also inform him that some crazy Nihonite has settled in the sewers. We say that we didn't deal with evicting him because the task was to destroy the monsters, and the issue with the homeless is already beyond our authority. Do you agree?