Title
Resolution to Approve a Payment in Lieu of Taxes (PILOT) for the Ann Arbor Housing Commission for North Maple Estates, North Maple Duplexes, Lower Platt, Broadway, and White/State/Henry Apartments
Memorandum
The Ann Arbor Housing Commission (Commission) is redeveloping the public housing units at North Maple Estates (701 - 739 N. Maple), North Maple Duplexes (743 -749 N. Maple), Lower Platt (3405, 3451-3457,Platt Road), Broadway (1504-1508 Broadway) and White/State/Henry Apartments (1514 & 1520 White Street, 1521 State Street, and 701 - 719 Henry) under the Federal Housing and Urban Development's (HUD) Rental Assistance Demonstration (RAD) program. The primary source of funding for affordable housing redevelopment is the Low Income Housing Tax Credit (LIHTC) Program.
The Internal Revenue Service (IRS) requires the Commission to form a limited partnership or limited liability company with an equity investor to finance the redevelopment of these properties with LIHTC. The Commission has requested that City Council approve the transfer of ownership of these properties to the Commission under a separate resolution. The Commission will own the land and the Commission will execute a long-term land lease with the limited partnership or limited liability company for the improvements (buildings).
The Commission or an affiliated entity is applying for LIHTC from the Michigan State Housing Development Authority (MSHDA). These properties are currently tax-exempt and will lose their tax-exempt status when the City transfers ownership of the property to the Commission. The City has a PILOT ordinance (Chapter 19, Section 1:651 of Ann Arbor City Code) that applies to all affordable housing projects that meet the requirements of the ordinance. MSHDA requires a separate PILOT resolution specific to tax credit projects.
Under the RAD program, all existing households, in good standing with their lease, will retain their housing after the units are converted un...
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