Title
Resolution to Approve the Ann Arbor Housing Commission & Affiliated Entities Investment Policy
Memorandum
The Ann Arbor Housing Commission (AAHC) and its affiliated entities, specifically the Ann Arbor Housing Development Corporation (AAHDC), holds significant amounts of financial assets in the form of operating funds, millage funding received through the City of Ann Arbor as well as various other grants and revenue funds.
The AAHC intends to implement a formal investment policy that specifies the scope, objectives, prudence and indemnification, delegation of authority, investment procedures, ethics and conflict of interest, selection of banks, selection of brokers/dealers, authorized investments and transactions, collateralization of deposits, safekeeping and custody, investment diversification, competitive transactions, internal controls, performance and reporting. The Director of Finance consulted with the City of Ann Arbor Treasurer’s office to align with the City of Ann Arbor’s investment policy.
The AAHC as well as any affiliated entities’ funds shall be invested in accordance with all AAHC policies, state statutes, and federal regulations (where applicable), and in a manner designed to accomplish the following objectives, which are listed in priority order:
Safety: Preservation of capital and protection of investment principal
Liquidity: Maintenance of sufficient liquidity to meet anticipated disbursements and cash flows
Yield: Attainment of an optimized rate of return based on market conditions.
Staff
Created by: Ulli Raak, Finance Director, Ann Arbor Housing Commission
Approved by: Jennifer Hall, Executive Director, Ann Arbor Housing Commission
Body
WHEREAS, the Ann Arbor Housing Commission (AAHC) is implementing a formal investment policy;
WHEREAS, the AAHC has drafted a comprehensive investment policy including the scope, objectives, prudence and indemnification, delegation of authority, investment procedures, ethics and conflict of interest, selection of banks, selection of brokers/dealers, authorized investments and transactions, collateralization of deposits, safekeeping and custody, investment diversification, competitive transactions, internal controls, performance and reporting;
WHEREAS, the AAHC and its affiliated entities’ funds shall be invested in accordance with all AAHC policies, state statues, and federal regulations (where applicable), and in a manner designed to accomplish the following objectives, which are listed in priority order:
Safety: Preservation of capital and protection of investment principal
Liquidity: Maintenance of sufficient liquidity to meet anticipated disbursements and cash flows
Yield: Attainment of an optimized rate of return based on market conditions;
WHEREAS, the Commission staff is presenting the investment policy to the Board for its review;
RESOLVED, that the Ann Arbor Housing Commission Board approves the attached investment policy which covers the Ann Arbor Housing Commission and all affiliated entities.