Title
Resolution to Amend the Neighborhood Stabilization Program (NSP) Budget by Allocating $35,885 to Avalon Second Non-Profit Housing Corporation or an Affiliated Ownership Entity to Support the Rehabilitation of 701 Miller (8 Votes Required)
Memorandum
Attached for your review and approval is a resolution to amend the Neighborhood Stabilization Program (NSP) budget by reallocating $35,885 to Avalon Second Non-Profit Housing Corporation or an affiliated ownership entity for the rehabilitation of 701 Miller. At present, $35,885 is allocated to the Near North Project.
The City of Ann Arbor was allocated $850,000 in NSP funds from MSHDA. These funds, which must be expended by September 30, 2012, have been allocated and expended, except for the $35,885 allocated to the Near North. Near North has experienced significant delays, and the September 30, 2012 deadline for expending these funds is quickly approaching.
At the same time, another affordable housing project - 701 Miller - has experienced increased costs due to mold identified in wall coverings throughout all units. Additional funds have been allocated to 701 Miller project by the Urban County Executive Committee and Michigan State Housing Development Authority.
The Office of Community and Economic Development (OCED) recommends that Council reallocate $35,885 from the Near North project to further support rehabilitation work at 701 Miller. Due to project delays associated with the Near North project and the September 30, 2012 deadline to expend NSP funds, reallocating these funds is prudent.
Recommended Reallocation
718, 722 & 724 N Main (Near North) ($33,292)
Administrative costs associated with 718-724 N. Main ($2,593)
Rehabilitation of 701 Miller $35,885
The OCED recommends that Council allocate $35,885 in NSP funds as a 0% interest, deferred payment 35-year loan that will be forgiven after 35 years to Avalon Housing Inc., or an affiliated ownership entity to support the rehabilitation of 701 Mil...
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