Title
Resolution to Approve a Payment in Lieu of Taxes (PILOT) for Pear Street Apartments Limited Dividend Housing Association Limited Partnership at 1440 Pear Street
Memorandum
On October 15, 2007, Avalon Housing applied for $845,000 in HOME funds in response to Request for Proposal #678 to acquire and rehabilitate 20 rental units at 1440 Pear Street as permanent supportive housing. The Office of Community Development and Housing and Human Services Advisory Board Evaluation Committee reviewed the proposal and on November 13, 2007, the HHSAB voted to support funding for this proposal at an amount to be determined. A resolution requesting that Council approve HOME funds for this project will be sent to Council after the OCD staff have completed all legal and financial due diligence and after Avalon has secured funding from the other investors.
Avalon Housing will be applying for Low Income Housing Tax Credits (LIHTC) from the Michigan State Housing Development Authority (MSHDA) in January 2008 together with Pear Street Apartments LDHA LP, a partnership that will own the Apartments, as required under the IRS code for LIHTC.
The LIHTC selection process has changed from a lottery to 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 Pear Street 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 Pear Street Apartments LDHA LP at 1440 Pear Street.
Staff
Prepared by: Jennifer Hall, Housing Program Coordinator
Damon Thompson, Interim Community Development Director
Reviewed by: Jayne Miller, ...
Click here for full text