Title
Resolution to Reallocate $175,383.00 in Neighborhood Stabilization Program Funds to Avalon Housing Inc. or an Affiliated Ownership Entity for the Acquisition and Rehabilitation of 701 Miller ($175,383.00 CDBG-NSP Funds) (8 Votes Required)
Memorandum
Attached for your review and approval is a resolution to reallocate an additional $175,383 in Neighborhood Stabilization Program (NSP) Funds to Avalon Housing Inc. or an affiliated ownership entity to acquire and rehabilitate 23 units of permanent affordable housing for low income tenants.
Avalon is using various funding sources to acquire and rehabilitate 23 units at 701 Miller for a budget of approximately $2,400,000. Various sources of funding are as follows: $549,000 from the Michigan State Housing Development Authority (MSHDA), awaiting approval of an additional $900,000 from MSHDA, $200,000 from the Downtown Development Authority, $120,000 from Washtenaw County, $230,000 from the Federal Home Loan Bank and $200,000 in NSP funds as approved by Council on December 7, 2009 from $850,000 NSP grant.
The City of Ann Arbor was allocated $850,000 in NSP funds from MSHDA out of a total national allocation of $3,920,000,000 under Title III of Division B of the Housing and Economic Recovery Act (HERA) by Congress for the Neighborhood Stabilization Program (NSP). These funds are a special Community Development Block Grant (CDBG) allocation. Because the City’s formula allocation was less than $2 million, the funds went to the State of Michigan to administer instead of directly to the City of Ann Arbor. MSHDA allocated $850,000 to Ann Arbor and Council accepted the grant on July 8, 2009 (R-09-366).
MSHDA must commit all of its NSP funds by September, 2010, as uncommitted funding will be recaptured by HUD. Therefore, MSHDA is requiring that all NSP funds awarded to Ann Arbor and other grantees throughout the state are committed by June 30, 2010, and it will recapture any funds that remain uncommitted. In order...
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