Title
Resolution to Approve a Payment in Lieu of Taxes (PILOT) for Near North Limited Dividend Housing Association Limited Partnership at 626 N. Main
Memorandum
On September 21, 2009, the property at 626 N. Main received a rezoning to Planned Unit Development.
Avalon Housing, together with its development partner, Three Oaks Group, will be applying for Low Income Housing Tax Credits (LIHTC) from the Michigan State Housing Development Authority (MSHDA) through Near North Apartments LDHA LP, a partnership that will own the Apartments, as required under the IRS code for LIHTC.
The LIHTC selection process includes a point system. Avalon can secure 15 points if the City of Ann Arbor adopts a PILOT (payment in lieu of taxes) specifically for this project. The City currently has a PILOT ordinance (Chapter 19 attached) that applies to all affordable housing projects that meet the requirements of the ordinance. Our ordinance technically would include the Near North project. However, MSDHA only awards 15 points if a separate PILOT resolution is adopted that specifically mentions the project.
The Office of Community Development recommends that City Council approve a PILOT for Near North Apartments LDHA LP at 626 N. Main Street.
Staff
Prepared by: Jennifer Hall, Housing Manager
Reviewed by: Mary Jo Callan, Community Development Director and Jayne Miller, Community Services Area Administrator
Body
Whereas, Three Oaks Group, together with Avalon Housing, has applied for a rezoning of the parcels at 626 N. Main for new construction of 39 units of affordable housing;
Whereas, Avalon Housing Inc. and Three Oaks will create Near North Apartments Limited Dividend Housing Association Limited Partnership as the ownership entity for the property located at 626 N. Main to be called Near North Apartments;
Whereas, City Council approved a rezoning to PUD including the provision of 39 units of affordable housing; and
Whereas, The Ann Arbor City Council hereby determine...
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